Slide 1: Q3 FY15 Investor Update Presentation
Q3 FY15 Investor Update Presentation
Slide 2: HEG Limited - Profile
HEG Limited - Profile HEG Limited (henceforth HEG) is a leading graphite electrode manufacturer & exporter Globally. HEG produces two grades of graphite electrodes - High Power (HP) & Ultra High Power (UHP) - used in manufacturing steel through the Electric Arc Furnace (EAF) route Exports over 75% o
Slide 3: Global Steel Industry
Global Steel Industry World crude steel production reached 1662 million tons for 2014, growing by 1.2% as compared to 1642 million ton in 2013. The EU showed an increase of 1.7% in 2014, whereas Asia and North America reported growth of 1.4% and 2.0% respectively. Steel production in South Ameri
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. Share of EAF in the global steel production is around 29-30%. EAF steel has been growing at the rate of 1% for the last 4 years. Graphite Ele
Slide 5: Crude Steel & EAF Growth Chart
Crude Steel & EAF Growth Chart Source: WSA 5
Slide 6: 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 7: Financial Snapshot
Financial Snapshot In Rs. Crore (except EPS) Q3 FY15 Q2 FY15 Q3 FY14 Net Operating Income 279.74 323.41 428.19 EBITDA* 51.49 53.44 88.55 EBITDA Margin 18.41% 16.52% 20.68% EBIT 32.19 34.71 69.40 EBIT Margin 11.5% 10.7% 16.2% Forex gains/(loss) (9.39) (8.53) (2.33) PAT 10.45 5.57 44.31 PAT Margin 3.7
Slide 8: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes In Rs. Crore Graphite Electrodes Q3 FY15 Q2 FY15 Q1 FY15 Q4 FY14 Net Sales 271.17 319.47 342.61 494.31 Export (% of sales) 74% 77% 83% 84% EBITDA Margin 8.14% 8.79% 10.30% 9.70% EBIT Margin 2.34% 4.14% 5.76% 6.60% Capital Employed 928.90 880.63 914.85 979.
Slide 9: Segmental Performance – Power
Segmental Performance – Power In Rs. Crore Power Q3 FY15 Q2 FY15 Q1 FY15 Q4 FY14 Net Sales 60.64 56.45 56.14 69.16 EBITDA Margin 46.32% 43% 44% 52% EBIT Margin 40.56% 37% 38% 47% Capital Employed 172.26 173.04 183.23 190 Tawanagar’s hydro facility operating at capacity during the Qtr, favorably affe
Slide 10: Future Outlook
Stable Outlook envisaged in the forthcoming year, likely to have a favorable impact on industry’s cost structures. With drop in Crude Oil prices and with no clear indications on demand growth, Needle coke and commodity prices expected to soften in the coming year. Future Outlook Expected notificatio
Slide 11: 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 11