Slide 1: Investors Presentation on Audited Financial Results
PROUD TO BE iNOlAh\ PRIVILEGED to st; a,OBAl I JEGI SECIT/2018 11th (\liay, 2018 1 SSE Limited ~2 INational stotk"E~change -of India Limited 25 th Floor, P JTowers I Exchange Plaza, 5th Floor Dalal Street i Plot No.e/l, G Block, Bandra - Kutla Complex MUMBAI - 400 001, I Bandra (E), Scrip Code: 5096
Slide 2: HEG Limited Investor Update
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Slide 3: 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 approxima
Slide 4: Global Steel Industry
Global Steel Industry World Steel Association (WSA), reported a growth of 4.1 %.in world crude steel production to 425 million tons for Apr-Mar' 18 period. 9.1 0.9 World I 1620 I 1606 1691 ( 5.3% ) 425 4.1o/V IIAs,a I 4.6 68.8 6.8 2.6 China 803 787 832 (5.7%) 211 ( 5:4%) liN. AmBric::l I 1.9 6.9 Wor
Slide 5: China's Steel Capacity 2017
China's Steel Capacity 2017 .:. In 2017 highly polluting unaccountedinductionfurnace capacity totalling 155 million mt was closed in China .:. Besides above they have committed to· close down an additional 150 million mt of Blast furnace capacity over the period of 5 years at the rate of 30 million
Slide 6: Growth in Electric Arc Furnace (EAF) Steel Production
Growth in Electric Arc Furnace (EAF) Steel Production .:. In Q1 2018, Steel exports from China further felldown to annualized 60m.illion tons .:. As China's steeL exports keep dropping, the . Rest of the World Steel production keepsincreasingwhereEAF accountsfor450Jo of Steel Production . •:. EAF St
Slide 7: Needle Coke Scenario
Needle Coke Scenario .:. Strong demand ofGE continues but needle coke supply continues to be tight. .:. All coke suppliers are now offering prices valid for one quarter only which IS a departure from past practice where they used to give prices valid for one year .:. Reasonably large part of needle
Slide 8: Financial Snapshot
Financial Snapshot in Rs. Crore (except EPS) Net Operating Income 1292.45 842.71 267.19 2758.40 896.02 i EBITDA* 954.74 562.80 31.32 i 1733.94 i 87.86 EBITDA Margin 73.87% 66.79% 11.72% 62.86% 9.81% EBIT 937.07 543.92 13.11 1661.39 13.94 EBIT Margin i 72.50% 64.54% 4.91% 60.23% 1.56% 1"-'' '-' - ' i
Slide 9: Segmental Performance - Graphite Electrodes
Segmental Performance - Graphite Electrodes in Rs. Crore Net Sales 1288.10 831.29 258.81 I 2738.83 I 870.25 Export (% of sales) 65% 62% I 71% I 60% EBITQAM,C):.r:.gin 65% I 2% I 61% I " (2)% EBIT Margin 73% 63% (4)% I 59% I (9)% • Capacity utilisation at ' around 84% during the Qtr. Order book healt
Slide 10: Segmental Performance - Power
Segmental Performance - Power in Rs. (rore Net Sales 40.66 69.32 58.42 213.80 216.93 EBITDA Margin 11% 35% 48% 28% 35% EBIT Margin 4% 30% 43% 23% 29% II Tawa nagar hydroJadlity is rain dependant and hence did not operate inQ4, affecting both top line and bottom line adversely (vis a vis previous Qtr
Slide 11: Future Outlook
Future Outlook .:. Consolidation in Graphite Electrode Industry coupled with rising demand will help in improving capacity utilization going forward. However availability of both needle coke and also other coke continues to be a limiting factor for now. •:. Production through EAF route is expected t
Slide 12: Thank You
Thank You Mr. Raju Rustogi - CFO & COO Mr. Gulshan Sakhuja HEG Limited Ph: +91120 2444541 Fax: +91120 254.1575 Email: r.rustogi@lnjbhilwara.com III