Slide 1: HEG Limited Q4 & FY2012 Results Presentation
HEG Limited Q4 & FY2012 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 for Q1 CY2012 was 377 Mt, 1.1% higher that Q1 CY2011 (Source: World Steel Association) Global apparent steel use will increase by 3.6% to 1,422 Mt in 2012, following growth of 5.6% in 2011 (Source: World Steel Association) World steel demand in 2013 is
Slide 4: Expansion – Graphite Electrodes
Expansion – Graphite Electrodes Commercial production has commenced on the expanded capacity; 80,000 tons rated capacity fully functional HEG is the world’s largest single-site producer Low cost, Brownfield expansion State-of-art, integrated facility Economies of scale to improve further Adequate ne
Slide 5: Performance Perspectives
Performance Perspectives HEG displays healthy operational performance Capacity utilization in the high 80% range for the quarter Annual capacity utilisation in the 90 % range Going forward capacity utilization rates expected to sustain in high 80% range Graphite electrode demand expected to be suppo
Slide 6: Performance Perspectives
Performance Perspectives Financial highlights Needle Coke pricing for CY 2012 fixed at an increased but competitive price Graphite electrode prices have shown some increase, partially offsetting the Needle Coke price increase Domestic input costs show an increasing trend Exceptional items represent
Slide 7: Highlights
Highlights Net Sales in FY2012 higher by 27.9% at ` 1,424.0 crore as compared to ` 1,113.7 crore in FY2011 EBIDTA (before exceptional items) in FY2012 rises by 4.9% at ` 258.6 crore from ` 246.9 crore in FY2011 EBIT (before exceptional items) in FY2012 increases by 5.9% at ` 200.7 crore from ` 189.5
Slide 8: Management views
Management views Commenting on the current scenario, Mr. Ravi Jhunjhunwala, Chairman and Managing Director, HEG Limited, said: “ I am very proud to share that LNJ Bhilwara Group has completed 50 successful years, marking its Golden Jubilee celebrations. HEG Limited, which has been part of the LNJ Bh
Slide 9: Management views
Management views Commenting on the results, Mr. Manvinder Singh Ajmani, Chief Financial Officer, HEG Limited, said: “ The steel sector is portraying a stable growth rate in a challenging and uncertain environment while the EAF sector growth continues to be very encouraging. The quarter under review
Slide 10: Financial performance – A review
Financial performance – A review Revenues: Net Revenues increased by 44.7% at ` 407.4 crore in Q4 FY2012 as compared to ` 281.6 crore in Q4 FY2011 Volume growth to sustain as utilisation levels remain robust Particulars (` crore) Q4 FY2012 Q4 FY2011 Shift (%) FY2012 FY2011 Shift (%) Net Revenues: 40
Slide 11: Financial performance – A review
Financial performance – A review Total Expenditure: Domestic input costs continue to increase Coal cost on the rise; trend expected to continue going forward Interest cost has increased due to increased spreads; on account of tighter liquidity situation Q4 Q4 Shift Shift Particulars (` crore) FY2012
Slide 12: Financial performance – A review
Financial performance – A review EBIDTA: EBIDTA (before exceptional items) higher by 18.4% at ` 76.8 crore in Q4 FY2012 from ` 64.9 crore in Q4 FY2011 Q4FY2012 margins shaped by higher costs and reduction of other income Particulars (` crore) Q4 FY2012 Q4 FY2011 Shift (%) FY2012 FY2011 Shift (%) EBI
Slide 13: Financial performance – A review
Financial performance – A review Profit Before Tax in Q4 FY2012 rises by 13.6% at ` 48.5 crore as compared to ` 42.7 crore in Q4 FY2011 In Q4 FY2012, the Company reported a FX loss of ` 48.2 crore attributable to FX losses on account of Hedging positions taken and FX fluctuations on borrowings Shift
Slide 14: Segmental results – Graphite electrodes
Segmental results – Graphite electrodes Q4 FY2012 revenues reflect a growth of 45.5% at ` 400.3 crore as compared to ` 275.1 crore in Q4 FY2011 due to Higher sales volumes Capacity utilization at an optimum level Healthy realisations during the quarter PBIT increases by 54.9% at ` 48.8 crore from `
Slide 15: 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) Full year margins maintained Quaterly performance affected due to: T
Slide 16: In summary
In summary Commercial production has commenced on the expanded capacity Total rated capacity of 80,000 tons To augment performance over time Global economic conditions continue to remain volatile and uncertain Euro zone debt crisis affecting the world at large Graphite Electrode outlook is encouragi
Slide 17: In summary
In summary Improvement in operating performance likely With expanded capacities in place, the Company is expected to capture higher market share Graphite electrodes division to benefit from expected rise in volumes, prices and realizations, and stock of Needle Coke procured at lower prices Power div
Slide 18: 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 19: 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 20: 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 21: Contact details
Contact details For further information, please contact: Manvinder Singh Ajmani – CFO Janki Dholakia HEG Limited Citigate Dewe Rogerson Ph: +91 120 244 4541, 439 0224 Ph: +91 22 6645 1217 Fax: +91 120 254 1575 Fax: +91 22 6645 1213 Email: manvinder.ajmani@lnjbhilwara.com Email: janki@cdr-india.com S