Slide 1: Q1 FY14 Investor Update Presentation
Q1 FY14 Investor Update Presentation
Slide 2: HEG Limited - Profile
HEG Limited - Profile 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 elec
Slide 3: Steel Sector Scenario
Steel Sector Scenario Global Steel demand is expected to remain sluggish in 2013 Global steelmakers continue to witness supply growth outpacing demand, with capacity utilization rates likely to remain below 80% till 2014. According to WSD* :- – Subdued steel prices will continue to weigh on the glob
Slide 4: Evolution of Steel Demand & Outlook
Evolution of Steel Demand & Outlook Evolution of World Steel Demand & Projections (finished steel) Apparent steel use (crude steel equivalent) 1 Africa, other Asia, CIS, Oceania, MENA, Latin America Source – World Steel Association 4
Slide 5: Outlook for EAF Capacities
Outlook for EAF Capacities CAGR for EAF steel production is expected to be 3-4%. New EAF capacity has been coming up in US & Middle East - due to cheap gas & power China, now a relatively small UHP grade graphite electrodes market, is set to become the world's biggest market within five to ten years
Slide 6: Graphite Electrodes Market Scenario
Graphite Electrodes Market Scenario Graphite electrodes find their biggest industrial use in Electric Arc Furnace (EAF) used in steel plants to melt steel scrap. Graphite electrodes market has a current market size of over 1.1 million tonnes per year with the steel industry being the largest consume
Slide 7: Condensed Statement of Operations
Condensed Statement of Operations In Rs. Crore Y-o-Y Q-o-Q Q1 Q1 Q4 Particulars Change Change FY14 FY13 FY13 (%) (%) Net Operating 234.09 384.59 (39.13%) 446.29 (47.55%) Income Other Income 4.31 2.35 83.40% 4.44 (2.93%) Total Income 238.40 386.94 (38.39%) 450.73 (47.11%) Operating 197.77 281.49 (29.
Slide 8: Segmental Performance - Graphite
Segmental Performance - Graphite In Rs. Crore Graphite Q1 FY14 Q1 FY13 Net Sales 230.85 380.76 Export (% of sales) 77.55% 81.41% EBITDA Margin 7.30% 20.70% EBIT Margin 1.69% 17.45% Capital Employed 1109.45 1042.22 Lowest ever capacity utilisation of 58% during the quarter. Depressed steel market fur
Slide 9: Segmental Performance - Power
Segmental Performance - Power In Rs. Crore Power Q1 FY14 Q1 FY13 Net Sales 46.83 56.2 EBITDA Margin 45.00% 44.43% EBIT Margin 38.11% 37.97% Capital Employed 200.96 210.47 Generation affected by lower capacity utilisation in Graphite segment and merchant sale not being remunerative, resulting in scal
Slide 10: Financial Snapshot (over last 5 quarters)
Financial Snapshot (over last 5 quarters) In Rs. Crore (except EPS) Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Net Operating Sales 384.59 440.01 351.71 446.29 234.09 EBITDA* 105.45 71.16 57.20 72.91 40.63 EBITDA Margin 27.42% 16.17% 15.97% 16.34% 17.36% EBIT 89.45 55.46 41.02 58.15 24.12 Return on Sale
Slide 11: Financial Snapshot (graphical presentation)
Financial Snapshot (graphical presentation) 500 450 400 Heading 350 300 Rs. Crore 250 Net Operating Sales 440.01 446.29 200 384.59 351.71 150 100 234.09 50 0 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 120 27.42% 30.00% 100 25.00% 80 17.36% 20.00% 16.17% 16.26% 16.34% Rs. Crore 60 15.00% EBITDA * 105.45 EBIT
Slide 12: Financial Snapshot (graphical presentation)
Financial Snapshot (graphical presentation) 40 9.00% 35.91 35.14 35 8.00% 8.16% 30 7.87% 7.00% 25 23.23 6.00% 20 6.04% Rs. Crore 15 5.00% 11.52 10 4.00% 5 3.00% 3.28% 0 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 2.00% -5 1.00% -10 -9.32 -15 0.00% PAT PAT Margin 12
Slide 13: Performance Outlook
Performance Outlook HEG is ramping up capacity utilisation with improved order book position Plans to achieve an overall capacity utilisation in the range of 70-75% during the year With the exhaustion of higher cost opening inventory of key raw materials, margins are expected to improve. Focus on op
Slide 14: Thank You
Thank You For further information, please contact: Mr. Raju Rustogi – Chief Financial Officer HEG Limited Ph: +91 120 244 4541 Fax: +91 120 254 1575 Email: r.rustogi@lnjbhilwara.com Mr. Parin Narichania Teamwork Media Pvt Ltd. Mo.: +91 99300 25733 Email: parin@outlook.com 14
Slide 15: Important Disclosure
Important Disclosure HEG LIMITED may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with Bombay Stock Exchange and National Stock Exchange, and our reports to shareholders. The company does not undertake to upd