Heg Limited · NSE:HEG
Heg — Q4 FY2013 Earnings Presentation
19 slides from Heg's earnings presentation, 2013
Slide 1: Q4 & FY2013 Results Presentation
HEG Limited Q4 & 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 (ex-China) for Q1 CY2013 was 3.6% lower as compared to the corresponding period 2013 global apparent steel use expected to increase by 2.9 %, to 1,454 Mt, following growth of 1.2% in 2012 (Source: World Steel Association) Graphite Electrodes demand bas
Slide 4: Performance Perspectives
Performance Perspectives Healthy operational performance in both segments, graphite electrodes and power Capacity utilisation around 85% for the quarter Annual capacity utilisation at around 75 % Graphite electrodes demand expected to be supported by steel demand HEG consolidates position as world’s
Slide 5: Highlights
Highlights Total income from operations in FY2013 rises by 14% at ` 1,622.6 crore as compared to ` 1,424.6 crore in FY2012 EBIDTA (before exceptional items) in FY2013 increases by 19% at ` 306.7 crore from ` 258.6 crore in FY2012 EBIT (before exceptional items) in FY2013 higher by 22% at ` 244.1 cro
Slide 6: Management views
Management views Commenting on the current scenario, Mr. Ravi Jhunjhunwala, Chairman and Managing Director, HEG Limited, said: “The global economic scenario has shown signs of improvement, though recovery continues to drag. Emerging markets continue to gather economic momentum owing to better local
Slide 7: Management views
Management views Commenting on the results, Mr. Manvinder Singh Ajmani, Head – Corporate Strategy, HEG Limited, said: “I am pleased that we have achieved full year capacity utilisation at around 75%, in an environment marred by weaker demand for steel in the key developed countries. Graphite electro
Slide 8: Financial performance – A review
Financial performance – A review Revenues: FY2013 Total Income higher by 14% at ` 1,622.6 crore as compared to ` 1,424.6 crore in FY2012 Q4 FY2013 Total Income at rises by 9.5% ` 446.3 crore as compared to ` 407.6 crore in Q4 FY2012 Higher quarterly volumes due to shift of sales from third quarter t
Slide 9: Financial performance – A review
Financial performance – A review Total Expenditure: Domestic input costs continue to exhibit some moderation Needle coke prices show a declining trend; CY 2013 needle coke supply is contracted at lower prices as compared to previous year Interest cost higher due to: Increased borrowings on account o
Slide 10: Financial performance – A review
Financial performance – A review EBIDTA: FY2013 EBIDTA (before exceptional items) increases by 19 % at ` 306.7 crore as compared to ` 258.6 crore in FY2012 Q4 FY2013 EBIDTA (before exceptional items) was at ` 72.9 crore as compared to ` 76.9 crore in Q4 FY2012 Delayed shipments of Q3FY2013 contribut
Slide 11: Financial performance – A review
Financial performance – A review FY2013 Profit Before Tax higher by 12.8% at ` 180.5 crore as compared to ` 160.0 crore in FY2012 Q4 FY2013 Profit Before Tax at ` 41.4 crore as compared to ` 48.4 crore in Q4 FY2012 Shift (%) Particulars (` ` crore) Q4 FY2013 Q4 FY2012 Shift (%) FY2013 FY2012 PBT 41.
Slide 12: Segmental results – Graphite electrodes
Segmental results – Graphite electrodes FY2013 revenue higher by 13.8% at ` 1,587.2 crore as compared to ` 1,394.7 crore in FY2012 Q4 FY2013 revenues were at ` 438.3 crore as compared to ` 400.3 crore in Q4 FY2012 PBIT was at ` 36.0 crore from ` 48.5 crore on account of lower realisations following
Slide 13: 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 as compared to corresponding period Performance influ
Slide 14: In summary
In summary Three speed economic recovery underway: Growth in emerging market and developed economies forecasted at 5.3 percent in 2013; growth in Asia is expected to pick up in the current year, driven largely by continued robust domestic demand Growth in the United States is forecast to be 1.9 perc
Slide 15: In summary
In summary Improvement in operational efficiency will be key to enhancing performance Process and technological enhancements to assist in aligning costs to softer demand and pricing environment To be supported by stable outlook on volumes Model remains focused and robust HEG has secured its place as
Slide 16: 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 17: 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 18: 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 19: Contact details
Contact details For further information, please contact: Manvinder Singh Ajmani – Head Corporate Strategy HEG Limited Ph: +91 120 439 0224 Fax: +91 120 254 1575 Email: manvinder.ajmani@lnjbhilwara.com Raju Rustogi – CFO HEG Limited Ph: +91 120 244 4541 Fax: +91 120 254 1575 Email: r.rustogi@lnjbhilw