Heg Limited · NSE:HEG
Heg — Q1 FY2020-21 Earnings Presentation
20 slides from Heg's earnings presentation, Aug 14, 2020
Slide 1: Investors presentation cover letter to stock exchanges
PROUD TO BE INDIAN PRIVILEGED TO BE GLOBAL HEG / SECTI/ 2020 14th August, 2020 1 BSE Limited 2 National Stock Exchange of India Limited 25 th 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 -
Slide 2: HEG Limited Investor Presentation: Performance Highlights Q1 FY 2020-21
HEG LIMITED Investor Presentation Performance Highlights Q1 of FY 2020-21
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 THE FAMILY TREE Power Generation & Power Consultancy IT Enabled Services The branches spread forth, powered by Buds flower in our service se
Slide 4: HEG Limited – Profile
HEG Limited – Profile Europe S. America • HEG Limited is a leading graphite electrode manufacturer & exporter globally. 3% 4% N. America India 5% • Exports approximately 70% of its production to about 30 countries around the world. 28% • Diversified customer portfolio –supplying large proportion of
Slide 5: Business Overview
Business Overview • HEG is among the world’s top five graphite electrode manufacturers Graphite Electrode Capacity (KMT/Year) • Global slowdown in steel production has impacted the demand of electrodes worldwide. • Also, current ongoing COVID-19 pandemic has slowed down the pace of 230 210 destockin
Slide 6: Our Growth
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
Slide 7: 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
Slide 8: 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) Highest in 269 last 6 262 Quarters 255 246 PRODUCTION IN MMT 230 234 212 213 201 203 198 -26% Lowest in last 6 158 Quarters CY-Q1’19 CY-Q2’19 CY-Q3’19 CY-Q4’19 CY-Q1’20 CY-Q2’20 HEG Ltd
Slide 9: Outlook for Steel Industry
Outlook for Steel Industry Short-Term Forecast for Steel World steel Association 2019 2020f 2021f 2019 2020f. 2021f. • The situation to gradually improve in the third quarter, but the recovery path will be slow. EU(28) 158.1 M 133.1 M 147.0 M -6% -16% 10% Europe (other) 33.8 M 33.3 M 36.5 M -10% -2%
Slide 10: China's EAF steel Production & Finished steel exports
China's EAF steel Production & Finished steel exports 200 • As per Chinese Blue Sky policy ,Country planned to produce China EAF Production (MMT) 20 % of the steel production by EAF route by year 2020, Hence target steel production for current year should be 200 MMT ( 20 % of 1 Billion steel product
Slide 11: Benefits of EAF Steelmaking & Graphite Electrode Industry
Benefits of EAF Steelmaking & Graphite Electrode (GE) Industry BOF Steel % Electric Steel % • EAF Growth rate in longer term is positive (~3%) 6% 32% • EAF Route is environmentally advantageous as it emits 75% less carbon. 44% 59% 61% 72% • These mills are flexible to operate & low capital intensive
Slide 12: Financial Snapshot (Standalone)
Financial Snapshot (Standalone) in Rs. Crore (except EPS) PARTICULARS Q1 FY’21 FY 19-20 FY 18-19 FY 17-18 REVENUE FROM OPERATIONS 233 2,149 6,593 2,758 EBITDA* 35 138 4,767 1,734 EBIT 17 66 4,695 1,661 PAT 11 53 3,050 1,081 EPS 2.79 13.83 763.60 270.61 EBITDA Margin (%) 15% 6% 72% 63% EBIT Margin (%
Slide 13: Profit & Loss for the Quarter ended 30th June 2020 - Standalone
Profit & Loss for the Quarter ended 30th June 2020- Standalone in Rs. Crores Quarter Ended Year Ended Sl. No. Particulars 30-06-2020 31-03-2020 30-06-2019 31-03-2020 Unaudited Audited Unaudited Audited I Revenue from Operation 233.29 374.44 816.51 2,149.02 II Other Income 46.03 42.29 39.16 143.76 II
Slide 14: Profit & Loss for the Quarter ended 30th June 2020 - Standalone
Profit & Loss for the Quarter ended 30th June 2020- Standalone in Rs. Crores Quarter Ended Year Ended Sl. No. Particulars 30-06-2020 31-03-2020 30-06-2019 31-03-2020 Unaudited Audited Unaudited Audited VIII Tax expense (1) Current Tax - (120.79) 121.78 (0.19) (2) Deferred Tax 0.22 4.20 3.81 (23.90)
Slide 15: Profit & Loss for Quarter ended 30th June 2020 - Consolidated
Profit & Loss for Quarter ended 30th June 2020 - Consolidated in Rs. Crores Quarter Ended Year Ended Sl. No. Particulars 30-06-2020 31-03-2020 30-06-2019 31-03-2020 Unaudited Audited Unaudited Audited I Revenue from Operation 233.29 374.44 816.51 2,149.02 II Other Income 46.03 42.29 39.16 143.76 III
Slide 16: Profit & Loss for Quarter ended 30th June 2020 - Consolidated
Profit & Loss for Quarter ended 30th June 2020 - Consolidated in Rs. Crores Quarter Ended Year Ended Sl. No. Particulars 30-06-2020 31-03-2020 30-06-2019 31-03-2020 Unaudited Audited Unaudited Audited VIII Tax expense (1) Current Tax - (120.79) 121.78 (0.19) (2) Deferred Tax 0.22 4.20 3.81 (23.90) I
Slide 17: COVID-19 Impact and Business Response
COVID-19 Impact and Business Response Impact on Business and actions taken by the Company: World Health Organization (WHO) declared outbreak of coronavirus disease (COVID-19) a global pandemic on March 11, 2020. Consequent to this, Government of India declared nationwide lockdown on March 23, 2020
Slide 18: 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 made detailed assessment of its liquidity position and the recoverability and carrying value of its assets comprising property, plant and equipment, intangible assets, right of
Slide 19: Business Position under COVID-19
Business Position under COVID-19 Company’s Position: The liquidity position of the company is quite robust and do not foresee any major issues in the near term. The company is having a treasury size of more than Rs. 1250 Crores at the end of June 2020. Further, the company is long term debt free
Slide 20: 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 19