Heg Limited · NSE:HEG
Heg — Q1 FY2013 Earnings Presentation
20 slides from Heg's earnings presentation, 2012
Slide 1: HEG Limited Q1 FY2013 Results Presentation
HEG Limited Q1 FY2013 Results Presentation
Slide 2: Introduction
Introduction Leading manufacturer and exporter of graphite electrodes in India One of the lowest cost producers of graphite electrodes Strong presence in value added Ultra High Power (UHP) segment Diversified customer portfolio - POSCO, US Steel, Arcelor Mittal and Nucor Corp Graphite electrodes man
Slide 3: Sector Perspective
Sector Perspective World crude steel production in the first six months of 2012 was 766.9 Mt, a slight increase of 0.9% compared to the same period of 2011 Production during April-June 2012 was higher as compared to the corresponding period (Source: World Steel Association) Global apparent steel use
Slide 4: Performance Perspectives
Performance Perspectives HEG displays strong operational performance Capacity utilization at around 75% for the quarter Going forward capacity utilization rates expected to sustain in high 80% range Graphite electrode demand expected to be supported by positive steel demand Exports continue to maint
Slide 5: Performance Perspectives
Performance Perspectives Financial highlights Graphite electrode prices continue to show marginal increase, partially offsetting the Needle Coke price increase Lower cost Needle Coke inventory helps margins rise strongly Power division profits higher as compared to corresponding period Exceptional i
Slide 6: Highlights
Highlights Net Sales in Q1 FY2013 increase by 38% at ` 384.3 crore as compared to ` 279.5 crore in Q1 FY2012 EBIDTA (before exceptional items) in Q1 FY2013 higher by 140% at ` 105.5 crore from ` 43.9 crore in Q1 FY2012 EBIT (before exceptional items) in Q1 FY2013 rises by 197% at ` 89.5 crore from `
Slide 7: Management views
Management views Commenting on the current scenario, Mr. Ravi Jhunjhunwala, Chairman and Managing Director, HEG Limited, said: “The economic scenario continues to be challenging with recovery in developed economies progressing at sluggish pace. Effects of the debt crisis in Euro zone continue to eng
Slide 8: Management views
Management views Commenting on the results, Mr. Manvinder Singh Ajmani, Chief Financial Officer, HEG Limited, said: “We are pleased with the operating progress made during the current quarter, despite the challenging business environment. The Company has achieved a resilient operating performance, p
Slide 9: Financial performance – A review
Financial performance – A review Revenues: Net Revenues increased by 38% at ` 384.6 crore in Q1 FY2013 as compared to ` 279.7 crore in Q1 FY2012 Volume growth to sustain as utilisation levels expected to be robust Particulars (` crore) Q1 FY2013 Q1 FY2012 Shift (%) Net Revenues: 384.6 279.7 37.5 9
Slide 10: Financial performance – A review
Financial performance – A review Total Expenditure: Domestic input costs continue to increase Coal costs contained; trend expected to continue going forward mitigated by better availability of linkage coal Interest cost has increased due to: Increased borrowings on account of recent expansion of the
Slide 11: Financial performance – A review
Financial performance – A review EBIDTA: EBIDTA (before exceptional items) increased by 140.3 % at ` 105.5 crore in Q1 FY2013 from ` 43.9 crore in Q1 FY2012 Q1FY2013 margins continue to be shaped by higher costs Particulars (` crore) Q1 FY2013 Q1 FY2012 Shift (%) EBIDTA before exceptional items 105.
Slide 12: Financial performance – A review
Financial performance – A review Profit Before Tax in Q1 FY2013 rises by 225.1% at ` 73.8 crore as compared to ` 22.7 crore in Q1 FY2012 In Q1 FY2013, there was a FX loss of ` 48.4 crore attributable to FX losses on account of Hedging positions taken and FX fluctuations on borrowings Particulars (`
Slide 13: Segmental results – Graphite electrodes
Segmental results – Graphite electrodes Q1 FY2013 revenues increase by 37.3% at ` 380.8 crore as compared to ` 277.3 crore in Q1 FY2012 due to Higher sales volumes Capacity utilization at a competitive level Healthy realisations during the quarter enhanced further by better exchange rates PBIT refle
Slide 14: Segmental results - Power
Segmental results - Power 3 power plants under operation with a total capacity of around 77 MW provide reliability and self-sufficiency Two thermal power plants at Mandideep (30 MW+33 MW) Hydroelectric power plant at Tawa (13.5 MW) Margins higher robustly as compared to corresponding period Quarterl
Slide 15: In summary
In summary Volatility and uncertainty continue to grip global economic conditions Euro zone debt crisis affecting the world at large Sluggish growth rate in USA Slowdown of growth in most Emerging Markets Cautious cost outlook to be maintained However operating enhancements expected to drive margin
Slide 16: In summary
In summary Model remains focused and robust HEG has secured its place as the world’s largest single site producer of graphite electrodes Economies of scale and low cost production are the key points by which the Company benefits Key raw materials requirement is secured Needle coke available in adequ
Slide 17: Disclaimer
Disclaimer Statements in this document pertaining to future status, events, or circumstances, including but not limited to statements about plans and objectives, potential product characteristics and uses, product sales potential and target dates for product launch are forward-looking statements bas
Slide 18: About HEG Limited
About HEG Limited HEG Limited, a listed company of the LNJ Bhilwara Group, was established in 1977 in technical and financial collaboration with Societe Des Electrodes Et Refractaires Savoie (SERS), a subsidiary of Pechiney of France. The Company has recently expanded Graphite Electrode capacities f
Slide 19: About Graphite electrodes
About Graphite electrodes Graphite electrodes find their biggest industrial use in Electric Arc Furnaces (EAF) used in steel plants to melt steel scrap. The demand for graphite electrodes is therefore sensitive not to steel prices but to steel production volumes through the EAF route, which accounts
Slide 20: Contact details
Contact details For further information, please contact: Manvinder Singh Ajmani – CFO HEG Limited Ph: +91 120 244 4541, 439 0224 Fax: +91 120 254 1575 Email: manvinder.ajmani@lnjbhilwara.com 20