Slide 1: HEG Limited Q2 & H1 FY2013 Results Presentation
HEG Limited Q2 & H1 FY2013 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 nine months of 2012 was 1,149 Mt, a marginal increase of 0.6% compared to the same period of 2011 July - September 2012 production was higher as compared to the corresponding period (Source: World Steel Association) Global apparent steel use expect
Slide 4: Performance Perspectives
Performance Perspectives HEG reflects robust operational performance Capacity utilization at around 85% for the quarter Going forward capacity utilization rates expected to remain good Graphite electrode demand expected to be supported by steel demand Exports continue to maintain momentum HEG consol
Slide 5: Performance Perspectives
Performance Perspectives Financial highlights Graphite electrode prices stable Lower cost needle coke inventory acquired last year has been exhausted; current year needle coke stock acquired at increased but competitive rates Power division profits robust as compared to corresponding period Exceptio
Slide 6: Highlights
Highlights Net Sales in Q2 FY2013 higher by 38% at ` 439.8 crore as compared to ` 319.2 crore in Q2 FY2012 EBIDTA (before exceptional items) in Q2 FY2013 rises by 48% at ` 71.2 crore from ` 47.9 crore in Q2 FY2012 EBIT (before exceptional items) in Q2 FY2013 increases by 64% at ` 55.5 crore from ` 3
Slide 7: Management views
Management views Commenting on the current scenario, Mr. Ravi Jhunjhunwala, Chairman and Managing Director, HEG Limited, said: “The current macro-economic situation is defined by problems in the European markets and sluggish growth in USA. Overall volatile market conditions continue to impact most s
Slide 8: Management views
Management views Commenting on the results, Mr. Manvinder Singh Ajmani, Chief Financial Officer, HEG Limited, said: “The Company has delivered robust operational and financial performance during the quarter under review; for both graphite electrode and power divisions. Capacity utilisation of graphi
Slide 9: Financial performance – A review
Financial performance – A review Revenues: Q2 FY2013 Net Revenues higher by 38% at ` 440.0 crore as compared to ` 319.3 crore in Q2 FY2012 Volume growth sustainable at current utilisation levels Particulars (` crore) Q2 FY2013 Q2 FY2012 Shift (%) H1 FY2013 H1 FY2012 Shift (%) Net Revenues: 440.0 319
Slide 10: Financial performance – A review
Financial performance – A review Total Expenditure: Domestic input costs continue to show an increasing trend Coal costs higher as compared to corresponding period; trend expected to continue going forward mitigated by better linkage coal Interest cost has increased due to: Increased borrowings on a
Slide 11: Financial performance – A review
Financial performance – A review EBIDTA: Q2 FY2013 EBIDTA (before exceptional items) higher by 48 % at ` 71.2 crore from ` 47.9 crore in Q2 FY2012 Q2FY2013 margins rise but are affected by Exhaustion of lower cost needle coke inventory Higher input costs Particulars (` crore) Q2 FY2013 Q2 FY2012 Shi
Slide 12: Financial performance – A review
Financial performance – A review Q2 FY2013 Profit Before Tax rises by 198% at ` 43.3 crore as compared to ` 14.6 crore in Q2 FY2012 In Q2 FY2013, the Company reported a forex gain of Rs.3.6 crore Hedging Reserve owing to adverse currency fluctuations on derivatives at Rs.0.65 crore Shift (%) Particu
Slide 13: Segmental results – Graphite electrodes
Segmental results – Graphite electrodes Q2 FY2013 revenues rise by 37% at ` 430.2 crore as compared to ` 313.0 crore in Q2 FY2012 due to Higher sales volumes Higher capacity utilization rate Healthy realisations during the quarter Q2 FY2013 PBIT increases by 56% at ` 31.3 crore from ` 20.1 crore Mar
Slide 14: 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) Margins increase as compared to corresponding period Quarterly perfo
Slide 15: In summary
In summary Slower than expected growth due to the global financial crisis Europe continues to face recessionary conditions due to fiscal and financial strains USA has been expanding since mid-2009, but the pace of recovery is very slow Emerging markets face major challenges related to exports, infla
Slide 16: In summary
In summary Model remains focused and robust HEG has secured its place as the world’s largest single site producer of graphite electrodes Economies of scale and low cost production are the key points by which the Company benefits Key raw materials requirement is secured Needle coke available in adequ
Slide 17: 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 18: 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 19: 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