Heg Limited · NSE:HEG
Heg — Q2 FY2020-21 Earnings Presentation
20 slides from Heg's earnings presentation, Nov 17, 2020
Slide 1: Cover letter to stock exchanges on investor presentation
PROUD TO BE INDIAN PRIVILEGED TO BE GLOBAL HEG / SECTT /2020 17th November, 2020 1 BSE Limited 2 National Stock Exchange of India Limited 25th Floor, P J Towers Exchange Plaza, 5th Floor Dalal Street Plot No.C/l, G Block, Bandra - Kurla Complex MUMBAI - 400 001. Bandra (E), Scrip Code: 509631 MUMBAI
Slide 2: HEG Limited Investor Presentation: Performance Highlights Q2 FY 2020-21
HEG LIMITED Investor Presentation Performance Highlights Q2 of FY 2020-21
Slide 3: HEG is part of LNJ Bhilwara Group: The Family Tree
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 Economic Outlook Projections (Percent change) Oct-20
World Economic Outlook Projections (Percent change) Oct-20 source International Monetary Fund HEG Ltd © LNJ Bhilwara Group 7
Slide 9: Overview of the World Economic Outlook Projections (Contd.)
Overview of the World Economic Outlook Projections (Percent change) Revised in Oct source International Monetary Fund (Contd.) HEG Ltd © LNJ Bhilwara Group 8
Slide 10: World Crude Steel Production Last Seven Quarters
World Crude Steel Production Last Seven Quarters ( CY Jan 19 – Sept.20) China World Excl. China 281 269 261 257 246 20% PRODUCTION IN MMT 230 234 217 219 207 210 -10% 204 189 167 Jan 19 to Dec 19 CY-Q1’19 CY-Q2’19 Jan 19 CY-Q3’19 to Dec 19 CY-Q4’19 CY-Q1’20 CY-Q2’20 Jan 20 to Jun 20 CY-Q3’20 Jan 19
Slide 11: Financial Snapshot (Standalone)
Financial Snapshot (Standalone) in Rs. Crore (except EPS) PARTICULARS Q2 FY’21 Q1 FY’21 FY 19-20 FY 18-19 FY 17-18 REVENUE FROM OPERATIONS 323 233 2,149 6,593 2,758 EBITDA* (25) 35 138 4,767 1,734 EBIT (44) 17 66 4,695 1,661 PAT (34) 11 53 3,050 1,081 EPS (8.79) 2.79 13.83 763.60 270.61 EBITDA Margi
Slide 12: Profit & Loss for the Quarter ended 30th September 2020 - Standalone
Profit & Loss for the Quarter ended 30th September 2020- Standalone in Rs. Crores Quarter Ended Half Year Ended Year ended Sl. No. Particulars 30‐09‐2020 30‐06‐2020 30‐09‐2019 30‐09‐2020 30‐09‐2019 31‐03‐2020 Unaudited Unaudited Unaudited Unaudited Unaudited Audited I Revenue from Operation 322.88 2
Slide 13: Profit & Loss for the Quarter ended 30th September 2020 - Standalone
Profit & Loss for the Quarter ended 30th September 2020- Standalone in Rs. Crores Quarter Ended Half Year Ended Year ended Sl. No. Particulars 30‐09‐2020 30‐06‐2020 30‐09‐2019 30‐09‐2020 30‐09‐2019 31‐03‐2020 Unaudited Unaudited Unaudited Unaudited Unaudited Audited VIII Tax expense (1) Current Tax
Slide 14: Profit & Loss for Quarter ended 30th September 2020 - Consolidated
Profit & Loss for Quarter ended 30th September 2020 - Consolidated in Rs. Crores Quarter Ended Half Year Ended Year Ended Sl. No. Particulars 30‐09‐2020 30‐06‐2020 30‐09‐2019 30‐09‐2020 30‐09‐2019 31‐03‐2020 Unaudited Unaudited Unaudited Unaudited Unaudited Audited I Revenue from Operation 322.88 23
Slide 15: Profit & Loss for Quarter ended 30th September 2020 - Consolidated
Profit & Loss for Quarter ended 30th September 2020 - Consolidated in Rs. Crores Quarter Ended Half Year Ended Year Ended Sl. No. Particulars 30‐09‐2020 30‐06‐2020 30‐09‐2019 30‐09‐2020 30‐09‐2019 31‐03‐2020 Unaudited Unaudited Unaudited Unaudited Unaudited Audited VIII Tax expense (1) Current Tax 0
Slide 16: Inventory Valuation
Inventory Valuation In line with the previous periods, the Company, in accordance with the applicable IND AS -2 "Inventories", has recognized its carrying inventory on Net Realizable Value (NRV) basis to the extent applicable. Due to this, the company has taken further charge of Rs. 28.96 Crores and
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 considered the possible effects that may result from COVID-19 in the preparation of the financial results including the recoverability of carrying amounts of financial and non-f
Slide 19: Business Position under COVID-19
Business Position under COVID-19 Company’s Position: The liquidity position of the company is quite robust. The company is having a treasury size of more than Rs. 1400 Crores at the end of September 2020. Further, the company is long term debt free. The company has also implemented stringent c
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