Slide 1: Cover letter to BSE and NSE
HEG/SECTT/2017 PROUD TO BE INDIAN PRIVILEGED TO BE GLOBAL 6th November, 2017 1 BSE Limited 25th Floor, P J Towers Exchange Plaza, 5th Floor Dalal Street Plot No.C/1, G Block, Bandra - Kurla Complex MUMBAI - 400 001. Bandra (E), Scrip Code : 509631 MUMBAI - 400 051. Scrip Code : HEG 2 | National Stoc
Slide 2: Q2 of FY18 Investor Update Presentation
Q2 of FY18 Investor Update Presentation
Slide 3: 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 60
Slide 4: Global Steel Industry
Global Steel Industry World Steel Association (WSA), reported a growth of 5.6 % in world crude steel production to 1266 million tons for first 9 months in 2017 vs the same period in 2016 Change Growth Areas %↑ % of world pdn Crude Steel Change 2017 2014 2015 2016 2017 vs.2016 Middle East 14.2 1.9
Slide 5: China's pollution crackdown & Graphite electrodes Scenario
China’s pollution crackdown & Graphite electrodes Scenario Due to Crackdown on pollution by Chinese Government from Jaunary’2017 led to closure of some identified highly polluting industries by June’17 Induction Furnace steel and Mini Mill capacity of more than 100 million ton has been closed do
Slide 6: China's pollution crackdown & Graphite electrodes Scenario
China’s pollution crackdown & Graphite electrodes Scenario Chinese exports of steel products were 5.1 million tonnes in September’17, the lowest monthly total since February 2014. Exports over the first nine months of the year slumped by almost 30% to 60 million tonnes. New installation of EAF f
Slide 7: China's pollution crackdown & Graphite electrodes Scenario
China’s pollution crackdown & Graphite electrodes Scenario In the Western World, appx 200,000 mt graphite electrodes capacities have closed down in past 3 to 5 years, thus bringing down the supplies Graphite Electrode Prices Have Risen Sharply due to Supply Tightness. Raw materials suppliers una
Slide 8: Financial Snapshot
Financial Snapshot in Rs. Crore (except EPS) Q2 FY18 Q1 FY18 Q2 FY17 FY17 Net Operating Income 409.54 213.71 203.71 896.02 EBITDA* 192.28 24.12 19.10 87.78 EBITDA Margin 46.95% 11.28% 9.37% 9.80% EBIT 174.08 6.33 1.32 13.87 EBIT Margin 42.51% 2.96% 0.65% 1.55% PAT 113.66 (8.43) (14.09) (50.10) PAT M
Slide 9: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes in Rs. Crore Q2 FY18 Q1 FY18 Q2 FY17 FY17 Net Sales 407.01 212.42 196.64 870.25 Export (% of sales) 63% 63% 55% 60% EBITDA Margin 43.2% 1.53% (2.4)% (1.78)% EBIT Margin 39.8% (5.41)% (10)% (8.81%) Capacity utilisation at around 85% during the Qtr. Order bo
Slide 10: Segmental Performance – Power
Segmental Performance – Power in Rs. Crore Q2 FY18 Q1 FY18 Q2 FY17 FY17 Net Sales 54.56 54.24 58.14 216.93 EBITDA Margin 37.1% 38.5% 39.2% 47.6% EBIT Margin 31.6% 32.8% 28.2% 41.7% Tawa nagar hydro facility is rain dependant and did not operate in Q2 as there was deficit rainfall in the catchment ar
Slide 11: Future Outlook
Future Outlook There is a structural change both on the demand side of electrodes and also the supply, with the closure of graphite plants in china recently and also in US and Europe, in last 3-4 yrs. There is a surge in demand of electrodes globally, with the enhancement of steel production act
Slide 12: Thank You
Thank You Mr. Raju Rustogi – CFO & COO HEG Limited Ph: +91 120 244 4541 Fax: +91 120 254 1575 Email: r.rustogi@lnjbhilwara.com 10