Heg Limited · NSE:HEG
Heg — Q1 FY2020 Earnings Presentation
21 slides from Heg's earnings presentation, Aug 16, 2019
Slide 1: HEG Limited exchange filing letter
PROUD TO BE INDIAN PRIVILEGED TO BE GLOBAL BEG/ SE CTI/ 2019 16th August, 2019 1 BSE Limited 2 National Stock Exchange of India Limited 25th Floor, P J Towers Exchange Plaza, 5th Floor Dalal Sh·eet Plot No.C/1, G Block, Bandra - Kurla Complex MUMBAI-400 001 . Bandra (E), Scrip Code : 509631 MUMBAI -
Slide 2: Q1 FY20 Investor Update Presentation
Q1 FY20 Investor Update Presentation April 2018
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 Power Generation & Textiles Graphite Electrodes Power Consultancy IT Enabled Services HEG Ltd © LNJ Bhilwara Group 2
Slide 4: HEG Limited – Profile
HEG Limited – Profile HEG Limited is a leading graphite electrode manufacturer & exporter Globally The company produces two grades of graphite electrodes - Ultra High Power (UHP) & High Power (HP) - used in producing steel through the Electric Arc Furnace (EAF) route. Exports approximately 75%
Slide 5: World's Largest Single Site Graphite Electrode Plant
World’s Largest Single Site Graphite Electrode Plant HEG Ltd © LNJ Bhilwara Group 4
Slide 6: 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 5
Slide 7: Graphite Electrode Industry – Our Unique Strengths
Graphite Electrode (GE) Industry – Our Unique Strengths GE- An indispensable material for Electric Arc Furnaces (EAF) for Steel production EAF accounts for approx 45% of total World Steel Production (Without China) High Entry Barrier – HEG the last new entrant in the world -1977 State of the
Slide 8: World Crude Steel: H1-2019 vs H2-2018
WORLD CRUDE STEEL :- H1-2019 vs H2-2018 World Crude Steel Output (Excluding China) Declines 0.3% in H1 CY’19 after increasing by 4.8 % in CY 2017 & 2.5 % in CY 2018 Russia ‐1 % Germany ‐5% US 5% Turkey Japan ‐10 % China ‐4 % Qatar 10 % Mexico ‐2 % India ‐8 % 5% South Korea 2% Brazil South ‐3 % Afric
Slide 9: World Crude Steel Production
WORLD CRUDE STEEL PRODUCTION 1,850 1,809 1,730 1,669 1,620 1,628 866 881 (47%) 859 (49%) 847 816 820 (50%) Rest of the World (51%) (50%) (50%) +5% 925 880 433 434 (47%) (49%) 928 984 822 804 808 871 (53%) China (50%) (51%) (49%) (50%) (50%) 446 492 (51%) (53%) Fig. in MMT 2014 2015 2016 2017 2018 20
Slide 10: World Crude Steel Production – Regional Growth
WORLD CRUDE STEEL PRODUCTION –REGIONAL GROWTH (H1-2019 vs H2-2018) Growth Areas %↑ % of world pdn China 10.2 53.2 Africa 7.6 0.8 Middle East 4.3 2.0 (Inc. Iran) N. America 1.4 6.5 Asia 0.8 18.2 (Excl. China) CIS 0.0 5.5 EU -2.5 9.2 S. America -3.0 2.3 Production Process : Hot Rolling Other EU -8.0 2
Slide 11: China's finished steel exports – Monthly & Year Wise Trends
China's finished steel exports- Monthly & Year Wise Trends -30% -8.1% 68.8 112 108 Expected Annualized 93 75 69 34 Actual CY-14 CY-15 CY-16 CY-17 CY-18 Cy-19 (Jan-June 19) HEG Ltd © LNJ Bhilwara Group 10
Slide 12: Financial Snapshot (standalone)
Financial Snapshot (standalone) in Rs. Crore (except EPS) PARTICULARS Q1 FY20 Q4 FY19 Q1 FY19 FY19 REVENUE FROM OPERATION 817 1347 1587 6593 EBITDA* 387 830 1197 4767 EBITDA Margin 47% 62% 75% 72% EBIT 369 812 1180 4695 EBIT Margin 45% 60% 74% 71% PAT 234 524 770 3050 PAT Margin 29% 39% 49% 46% EPS
Slide 13: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes PARTICULARS Q1 FY20 Q4 FY19 Q1 FY19 FY19 Net Sales (Rs.crores) 815 1344 1587 6582 Export (% of sales) 75% 77% 69% 75% EBITDA Margin 44% 58% 75% 71% EBIT Margin 42% 57% 74% 70% HEG Ltd © LNJ Bhilwara Group 12
Slide 14: Segmental Performance – Power
Segmental Performance – Power PARTICULARS Q1 FY20 Q4 FY19 Q1 FY19 FY 19 Net Sales (Rs.crores) 24.57 29.37 27.88 121.47 EBITDA Margin 10% 2% (6)% (5)% EBIT Margin (2)% (8)% (18)% (15)% HEG Ltd © LNJ Bhilwara Group 13
Slide 15: Profit & Loss for the period ended 30th June 2019 - Standalone
Profit & Loss for the period ended 30th June 2019 - Standalone in Rs. Crores Quarter Ended Quarter Ended Quarter Ended Year Ended Sl. No. Particulars 30‐06‐2019 31‐03‐2019 30‐06‐18 31‐03‐2019 Unaudited Audited Unaudited Audited I Revenue from Operation 816.51 1346.65 1587.38 6592.83 II Other Income
Slide 16: Profit & Loss for the period ended 30th June 2019 - Standalone
Profit & Loss for the period ended 30th June 2019 - Standalone in Rs. Crores Quarter Ended Quarter Ended Quarter Ended Year Ended Sl. No. Particulars 30‐06‐2019 31‐03‐2019 30‐06‐18 31‐03‐2019 Unaudited Audited Unaudited Audited VI Exceptional Items ‐ ‐ ‐ ‐ VII Profit/(Loss) before Tax (V‐VI) 359.98
Slide 17: Profit & Loss - Standalone Segment Results
Profit & Loss for the period ended 30th June 2019 - Standalone in Rs. Crores Quarter Ended Quarter Ended Quarter Ended Year Ended Sl. No. 30‐06‐2019 31‐03‐2019 30‐06‐18 31‐03‐2019 Particulars Unaudited Audited Unaudited Audited A Segment Revenue Graphite 814.64 1343.81 1586.84 6582.28 Power 24.57 29
Slide 18: Profit & Loss for the period ended 30th June 2019 - Consolidated
Profit & Loss for the period ended 30th June 2019 - Consolidated in Rs. Crores Quarter Ended Quarter Ended Quarter Ended Year Ended Sl. No. Particulars 30‐06‐2019 31‐03‐2019 30‐06‐18 31‐03‐2019 Unaudited Audited Unaudited Audited I Revenue from Operation 816.51 1346.65 1587.38 6592.83 II Other Incom
Slide 19: Profit & Loss for the period ended 30th June 2019 - Consolidated
Profit & Loss for the period ended 30th June 2019 - Consolidated in Rs. Crores Quarter Ended Quarter Ended Quarter Ended Year Ended Sl. No. Particulars 30‐06‐2019 31‐03‐2019 30‐06‐18 31‐03‐2019 Unaudited Audited Unaudited Audited VI Exceptional Items ‐ ‐ ‐ ‐ VII Profit/(Loss) before Tax (V‐VI) 359.9
Slide 20: Profit & Loss - Consolidated Segment Results
Profit & Loss for the period ended 30th June 2019 - Consolidated in Rs. Crores ` in Crores Quarter Ended Quarter Ended Quarter Ended Year Ended Sl. No. Particulars 30‐06‐2019 31‐03‐2019 30‐06‐18 31‐03‐2019 Unaudited Audited Unaudited Audited A Segment Revenue Graphite 814.64 1343.81 1586.84 6582.28
Slide 21: Thank You
Thank You Ms Dimple Momaya heg@adfactorspr.com +91 98207 62036 Mr.Manish Gulati, COO & CMO 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 Grou