Heg Limited · NSE:HEG

Heg — Q4 FY2019-20 Earnings Presentation

32 slides from Heg's earnings presentation, Jun 20, 2020

  1. Slide 1: Cover letter to stock exchanges

    PROUD TO BE INDIAN PRIVILEGED TO BE GLOBAL HEG / SECTT/2020 20th June, 2020 1 BSE Limited 2 National Stock Exchange of India Limited 25th Floor, P J Towers Exchange Plaza, 5th Floor Dalal Street Plot No.C/l, G Block, Bandra - Kurla Complex MUMBAI - 400 001. Bandra (E), Scrip Code: 509631 MUMBAI - 40

  2. Slide 2: HEG Limited Investor Presentation: Performance Highlights Q4 & FY 2019-20

    HEG LIMITED Investor Presentation Performance Highlights Q4 & FY 2019-20

  3. Slide 3: HEG is part of LNJ Bhilwara group

    HEG is part of LNJ Bhilwara group a diversified, reputed and large Indian business house having more than five decades of industrial experience and presence in Power Generation & Textiles Graphite Electrodes Power Consultancy IT Enabled Services HEG Ltd © LNJ Bhilwara Group 2

  4. Slide 4: World's Largest Single Site Graphite Electrode Plant

    World’s Largest Single Site Graphite Electrode Plant HEG Ltd © LNJ Bhilwara Group 3

  5. Slide 5: HEG Limited – Profile

    HEG Limited – Profile  HEG Limited is a leading graphite electrode manufacturer & exporter Globally  The company produces two grades of graphite electrodes - Ultra High Power (UHP) & High Power (HP) - used in producing steel through the Electric Arc Furnace (EAF) route.  Exports approximately 70%

  6. Slide 6: Highlights

     1977 - Established in Financial (appx 25% equity) / Technical participation of Pechiney, France  1992 - Pechiney sold their Graphite business to SGL, Germany & Indian Promoters bought these shares in HEG  1995 / 2011 – Kept expanding from 10,000 mt in small tranches & in 2011 took a quantum leap

  7. Slide 7: Graphite Electrode Industry – Our Unique Strengths

    Graphite Electrode (GE) Industry – Our Unique Strengths  GE- An indispensable material for Electric Arc Furnaces (EAF) for Steel production  EAF accounts for approx 45% of total World Steel Production (Without China)  High Entry Barrier – HEG the last new entrant in the world -1977  State of the

  8. Slide 8: R&D Center

    R&D Center  R&D set up to corroborate the Quality & Improvement Drives with small scale production facilities  The focus is also on development of new product lines  Development is focused towards Carbon

  9. Slide 9: World Economic Outlook

    World Economic Outlook Source – IMF HEG Ltd © LNJ Bhilwara Group 8

  10. Slide 10: World Economic Outlook % change as per IMF (contd.)

    World Economic Outlook % change as per IMF (contd.) Source – IMF HEG Ltd © LNJ Bhilwara Group 9

  11. Slide 11: World Crude Steel Production Last six Quarters

    World Crude Steel Production Last six Quarters ( CY Jan 19 – Jun 20) China Rest of the world (except China & Iran) 261.5 255.2 255.1 246.1 PRODUCTION IN MMT 230.4 233.7 211.6 212.6 201.4 197.8 202.8 150.8 C Y- Q 1 ' 1 9 C Y- Q 2 ' 1 9 C Y- Q 3 ' 1 9 C Y- Q 4 ' 1 9 C Y- Q 1 ' 2 0 C Y- Q 2 ' 2 0 ( E X

  12. Slide 12: Top Crude Steel-Producing Countries Q1 comparison Y-O-Y

    Top 10 Crude Steel Producers- Q’1-19 vs Q’1-20 (%) Top 10 Crude Steel-Producing Countries Q1 comparison Y-O-Y Rank Country CY-Q’1/19 (Mt) CY-Q’1/20 (Mt) CY-2019/2020 (%) 1 China 230.4 233.7 1.4% 2 India 29.1 26.9 -7.4% 3 Japan 25.0 24.1 -3.4% 4 United States 22.2 21.7 -2.0% 5 Russia 18.1 18.2 0.5% 6

  13. Slide 13: World steel Short Range Outlook June 2020

    World steel Short Range Outlook June 2020 1. In CY20 world steel forecasts that steel demand will contract by 6.4%, due to the COVID-19 crisis. 2. The situation to gradually improve in the third quarter, but the recovery path will be slow. 3. In many developed economies, steel demand was already at

  14. Slide 14: China's Finished steel exports

    China's Finished steel exports Steel exports to stay low in 2020 after a 7% drop in 2019 Due to global uncertainties Challenges remain significant for export market in the second half of 2020 -30% -8% -7% -7% 60 112 108 93 35 Expected 75 69 64 Actual 25 (Jan-May) CY-14 CY-15 CY-16 CY-17 CY-18 CY-19

  15. Slide 15: Financial Snapshot (standalone)

    Financial Snapshot (standalone) in Rs. Crore (except EPS) PARTICULARS FY19-20 FY18-19 REVENUE FROM OPERATIONS 2149 6593 EBITDA* 138 4767 EBIT 66 4695 PAT 53 3050 EPS 13.83 763.60 EBITDA Margin (%) 6% 72% EBIT Margin (%) 3% 71% PAT Margin (%) 2% 46% * EBITDA includes Other Income HEG Ltd © LNJ Bhilwa

  16. Slide 16: Profit & Loss for the Quarter & Year ended 31st March 2020- Standalone

    Profit & Loss for the Quarter & Year ended 31st March 2020- Standalone in Rs. Crores Quarter Ended Year Ended Sl. No. Particulars 31‐03‐2020 31‐12‐2019 31‐03‐2019 31‐03‐2020 31‐03‐2019 Audited Unaudited Audited Audited Audited I Revenue from Operation 374.44 393.69 1,346.65 2,149.02 6,592.83 II Othe

  17. Slide 17: Profit & Loss for the Quarter & Year ended 31st March 2020- Standalone

    Profit & Loss for the Quarter & Year ended 31st March 2020- Standalone in Rs. Crores Quarter Ended Year Ended Sl. No. Particulars 31‐03‐2020 31‐12‐2019 31‐03‐2019 31‐03‐2020 31‐03‐2019 Audited Unaudited Audited Audited Audited VIII Tax expense (1) Current Tax (120.79) (2.73) 278.98 (0.19) 1,619.35 ‐

  18. Slide 18: Balance Sheet as at 31st March 2020- Standalone

    Balance Sheet as at 31st March 2020- Standalone in Rs. Crores STATEMENT OF ASSETS AND LIABILITIES Particulars As at 31‐03‐2020 As at 31‐03‐2019 Audited Audited A ASSETS (1) Non‐current assets a) Property, Plant and Equipment 733.58 784.48 b) Capital work‐in‐progress 100.61 18.58 c) Investment Proper

  19. Slide 19: Balance Sheet as at 31st March 2020- Standalone

    Balance Sheet as at 31st March 2020- Standalone in Rs. Crores Particulars As at 31‐03‐2020 As at 31‐03‐2019 A ASSETS (2) Current assets (a) Inventories 1,005.14 1,308.39 (b) Financial assets ‐ ‐ (i) Investments 16.53 108.24 (ii) Trade receivables 399.41 1,186.88 (iii) Cash & Cash equivalents 32.80 2

  20. Slide 20: Balance Sheet as at 31st March 2020- Standalone

    Balance Sheet as at 31st March 2020- Standalone in Rs. Crores Particulars As at 31‐03‐2020 As at 31‐03‐2019 B EQUITY & LIABILITIES Equity (a) Equity share capital 38.60 38.60 (b) Other equity 3,384.28 3,680.40 LIABILITIES (1) Non‐current liabilities (a) Financial liabilities (i) Borrowings ‐ ‐ (ii)

  21. Slide 21: Balance Sheet as at 31st March 2020- Standalone

    Balance Sheet as at 31st March 2020- Standalone in Rs. Crores Particulars As at 31‐03‐2020 As at 31‐03‐2019 (2) Current liabilities (a) Financial liabilities (i) Borrowings 592.62 666.36 (ii) Trade Payables (A) Total Outstanding dues of micro enterprises and small enterprises 6.58 3.99 (B) Total Out

  22. Slide 22: Profit & Loss for Quarter & Year ended 31st March 2020 - Consolidated

    Profit & Loss for Quarter & Year ended 31st March 2020 - Consolidated in Rs. Crores Quarter Ended Year Ended Sl. No. Particulars 31‐03‐2020 31‐12‐2019 31‐03‐2019 31‐03‐2020 31‐03‐2019 Audited Unaudited Audited Audited Audited I Revenue from Operation 374.44 393.69 1,346.65 2,149.02 6,592.83 II Other

  23. Slide 23: Profit & Loss for Quarter & Year ended 31st March 2020 - Consolidated

    Profit & Loss for Quarter & Year ended 31st March 2020 - Consolidated in Rs. Crores Quarter Ended Year Ended Sl. No. Particulars 31‐03‐2020 31‐12‐2019 31‐03‐2019 31‐03‐2020 31‐03‐2019 Audited Unaudited Audited Audited Audited VIII Tax expense (1) Current Tax (120.79) (2.73) 278.98 (0.19) 1,619.35 (2

  24. Slide 24: Balance Sheet as at 31st March 2020 - Consolidated

    Balance Sheet as at 31st March 2020 - Consolidated in Rs. Crores STATEMENT OF ASSETS AND LIABILITIES Particulars As at 31‐03‐2020 As at 31‐03‐2019 Audited Audited A ASSETS (1) Non‐current assets a) Property, Plant and Equipment 733.58 784.48 b) Capital work‐in‐progress 100.61 18.58 c) Investment Pro

  25. Slide 25: Balance Sheet as at 31st March 2020 - Consolidated

    Balance Sheet as at 31st March 2020 - Consolidated in Rs. Crores Particulars As at 31‐03‐2020 As at 31‐03‐2019 (2) Current assets (a) Inventories 1,005.14 1,308.39 (b) Financial assets ‐ ‐ (i) Investments 16.53 108.24 (ii) Trade receivables 399.41 1,186.88 (iii) Cash & Cash equivalents 32.80 29.16 (

  26. Slide 26: Balance Sheet as at 31st March 2020 - Consolidated

    Balance Sheet as at 31st March 2020 - Consolidated in Rs. Crores Particulars As at 31‐03‐2020 As at 31‐03‐2019 B EQUITY & LIABILITIES Equity (a) Equity share capital 38.60 38.60 (b) Other equity 3,473.12 3,755.09 LIABILITIES (1) Non‐current liabilities (a) Financial liabilities (i) Borrowings ‐ ‐ (i

  27. Slide 27: Balance Sheet as at 31st March 2020 - Consolidated

    Balance Sheet as at 31st March 2020 - Consolidated in Rs. Crores Particulars As at 31‐03‐2020 As at 31‐03‐2019 (2) Current liabilities (a) Financial liabilities (i) Borrowings 592.62 666.36 (ii) Trade Payables (A) Total Outstanding dues of micro enterprises and small enterprises 6.58 3.99 (B) Total

  28. Slide 28: Inventory Valuation

    Inventory Valuation During the quarter and year ended 31st March 2020, due to fall in prices of Graphite Electrodes, the company in accordance with the Ind AS – 2 (Inventories), has recognised its carrying inventory on Net Realizable Value (NRV) basis to the extent applicable and accordingly written

  29. Slide 29: COVID-19 Impact and Business Response

    COVID-19 Impact and Business Response Impact on Business and actions taken by the Company:  On announcement of lockdown there was no operating business activity except in case of some specific processes which are continuous in nature and take about a month to shut down till April 23rd 2020.  Corpo

  30. Slide 30: COVID-19 Impact and Business Response

    COVID-19 Impact and Business Response in Rs. Crores Impact on Business and actions taken by the Company:  The Company has restarted operations with reduced workforce since late April 2020, adhering to strict safety norms prescribed by Government of India.  The company has been functioning through

  31. Slide 31: Business Position under COVID-19

    Business Position under COVID-19 Company’s Position:  The company is in a comfortable position due to its optimum banking limits in place and treasury size to meet out its obligations. The liquidity position of the Company is quite robust and do not foresee any major issues in the near term.  The

  32. Slide 32: Thank You

    Thank You Mr.Manish Gulati : Executive Director Mr.Om Prakash Ajmera : Group CFO Mr.Gulshan Kr.Sakhuja : CFO HEG Limited Ph: +91 9910103865 Fax: +91 120 254 1575 Email: Manish.gulati@lnjbhilwara.com Gulshan.sakhuja@lnjbhilwara.com HEG Ltd © LNJ Bhilwara Group 31

HEG — Q4 FY2019-20 Earnings Presentation on 6ix