Slide 1: Q3 FY14 Investor Update Presentation
Q3 FY14 Investor Update Presentation
Slide 2: HEG Limited - Profile
HEG Limited - Profile HEG Limited (henceforth HEG) is a leading graphite electrode manufacturer & exporter HEG produces two grades of graphite electrodes - High Power & Ultra High Power - used in manufacturing steel through the Electric Arc Furnace (EAF) route Exports over 75% of its production to m
Slide 3: Global Steel Industry
Global Steel Industry Global steel production in 2013 was 1,607 mt, up by 3.5% compared to 2012 Growth came mainly from Asia and Middle East All other regions – EU, North America, South America & CIS – witnessed decrease in production Global steel production is estimated to increase by 3.6% in 2014
Slide 4: Graphite Electrodes Market & EAF
Graphite Electrodes Market & EAF Graphite electrodes find their biggest industrial use in Electric Arc Furnace (EAF) used in steel plants to melt steel scrap Graphite electrodes market has a current market size of over 1.1 million tonnes per year (US$ 3.5 billion); with the steel industry being the
Slide 5: Factors leading to rise of EAF capacities
DRI now becoming Significantly less an economical feed; Factors leading to rise carbon emissions; Carbon Makes EAF secured of EAF capacities emissions taxes & other against volatility of steel restrictions imposed by govt. to scrap prices; Streamlines EAF discourage BOF steelmaking steelmaking proce
Slide 6: Financial Snapshot (over last 5 quarters)
Financial Snapshot (over last 5 quarters) In Rs. Crore (except EPS) Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Net Operating 358.11 446.3 235.27 301.93 428.19 Income EBITDA* 57.20 72.92 40.63 53.27 88.54 EBITDA Margin 15.97% 16.34% 17.27% 17.64% 20.68% EBIT 41.02 58.16 24.12 35.43 69.40 EBIT Margin 11.
Slide 7: Operating Income & Margins
Operating Income & Margins Net Operating Income EBITDA Margin EBIT Margin 500 25% 450 20.68% 400 20% 17.27% 17.64% 350 15.97% 16.34% 300 16.21% 15% Rs. Crore 250 13.03% 11.45% 11.73% 428.19 200 446.3 10% 10.25% 358.11 150 301.93 235.27 100 5% 50 0 0% Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Note - EBITDA
Slide 8: Impact of Forex on PAT Margins
Impact of Forex on PAT Margins 50 12% 10.35% 10% 40 7.87% 8% 30 6% 44.31 Rs. Crore 20 4% 3.22% 35.14 10 2% 1.68% 11.52 2.58 5.06 0% 0 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 -2% -9.32 -2.33 -10 -3.96% -9.2 -4% -12.98 -15.32 -20 -6% PAT Forex gains/loss PAT Margin
Slide 9: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes In Rs. Crore Graphite Electrodes Q3 FY14 Q2 FY14 Q3 FY13 Net Sales 414.55 294.58 337.93 Export (% of sales) 80% 77.3% 80% EBITDA Margin 12% 10.6% 7.6% EBIT Margin 8.4% 5.9% 4.0% Capital Employed 1044.46 1028.73 1063.69 Capacity utilisation at 80% during th
Slide 10: Segmental Performance – Power
Segmental Performance – Power In Rs. Crore Power Q3 FY14 Q2 FY14 Q3 FY13 Net Sales 71.78 41.72 64.16 EBITDA Margin 51% 42.8% 45% EBIT Margin 46.6% 37.8% 39.5% Capital Employed 201.17 208.86 214.39 Plant Load Factor (PLF) near optimum levels both in hydro and thermal plants. Hydro power generation hi
Slide 11: Future Outlook
Cautiously optimistic on Graphite Electrodes Industry outlook. Marginal improvement can be envisaged from the EU region. Order book is robust with receipt of few large orders, which are under execution. Improved Q3 numbers are partly due to these orders, in addition to softening of input prices. Fut
Slide 12: Thank You
Thank You Mr. Raju Rustogi – Chief Financial Officer HEG Limited Ph: +91 120 244 4541 Fax: +91 120 254 1575 Email: r.rustogi@lnjbhilwara.com Mr. Parin Narichania Progwell Teamwork Mo: +91 99300 25733 Email: parin@progwell.net