Heg Limited · NSE:HEG
Heg — Q3 FY2013 Earnings Presentation
18 slides from Heg's earnings presentation, 2013
Slide 1: HEG Limited Q3 & 9M FY2013 Results Presentation
HEG Limited Q3 & 9M 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 reached record levels of 1,548 Mt for the year 2012, up by 1.2% compared to 2011 (Source: World Steel Association) Growth led by China, India, Middle East and North America while Europe and South America registered negative growth. (Source: World Steel
Slide 4: Performance Perspectives
Performance Perspectives Moderation in capacity utilization rates for the quarter Going forward capacity utilization rates expected to improve Graphite electrodes demand expected to be supported by steel demand HEG consolidates position as world’s largest single site plant of Graphite Electrodes Fin
Slide 5: Highlights
Highlights Total income from operations in 9M FY2013 higher by 16% at ` 1,182.7 crore as compared to ` 1,017.0 crore in 9M FY2012 EBIDTA (before exceptional items) in 9M FY2013 rises by 29% at ` 233.8 crore from ` 181.00 crore in 9M FY2012 EBIT (before exceptional items) in 9M FY2013 increases by 34
Slide 6: Management views
Management views Commenting on the current scenario, Mr. Ravi Jhunjhunwala, Chairman and Managing Director, HEG Limited, said: “The year 2012 saw the world economy further weakening. A growing number of developed economies are witnessing sustained recession which is having a negative impact on the g
Slide 7: Management views
Management views Commenting on the results, Mr. Manvinder Singh Ajmani, Chief Financial Officer, HEG Limited, said: “In the year to date period, HEG Limited has delivered moderate operational and financial performance. The quarter under review has seen some decline in capacity utilization and a shif
Slide 8: Financial performance – A review
Financial performance – A review Revenues: 9M FY2013 Total Income rise by 16% at ` 1,182.7 crore as compared to ` 1,017.0 crore in 9M FY2012 Q3 FY2013 Total Income at ` 358.1 crore as compared to ` 418.0 crore in Q2 FY2012 Volume performance reflects lower utilisation levels Particulars (` crore) Q3
Slide 9: Financial performance – A review
Financial performance – A review Total Expenditure: Domestic input costs continue to show an increasing trend Needle coke prices remain stable during the CY 2012. CY 2013 contract negotiations in process; prices expected to show nominal decline Interest cost higher due to: Increased borrowings on ac
Slide 10: Financial performance – A review
Financial performance – A review EBIDTA: 9M FY2013 EBIDTA (before exceptional items) was higher by 29.2% at ` 233.8 crore as compared to ` 181.00 crore in 9M FY2012 Q3 FY2013 EBIDTA (before exceptional items) was at ` 57.2 crore as compared to ` 90.1 crore in Q3 FY2012 Margins affected by lower sale
Slide 11: Financial performance – A review
Financial performance – A review 9M FY2013 Profit Before Tax higher by 22% at ` 81.3 crore as compared to ` 66.9 crore in 9M FY2012 Q3 FY2013 Profit Before Tax at ` 12.6 crore as compared to ` 27.3 crore in Q3 FY2012 In Q3 FY2013, the Company reported a forex loss of Rs.13.0 crore 9M 9M Shift (%) Pa
Slide 12: Segmental results – Graphite electrodes
Segmental results – Graphite electrodes 9M FY2013 revenue rises by 16% at ` 1,148.9 crore as compared to ` 994.3 crore in 9M FY2012 Q3 FY2013 revenues were at ` 337.9 crore as compared to ` 404.0 crore in Q3 FY2012 PBIT was at ` 13.4 crore from ` 51.7 crore Particulars (` crore) Q3 FY2013 Q3 FY2012
Slide 13: 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 higher as compared to corresponding period Quarterly perform
Slide 14: In summary
In summary The global financial situation continues to retard international economic growth Europe continues to face recessionary conditions due to fiscal and financial strains resulting from high unemployment, high public debt burdens and weak demand USA has been expanding since mid-2009, but the p
Slide 15: 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 16: 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 17: 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 18: 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