Slide 1: Q2 FY15 Investor Update Presentation
Q2 FY15 Investor Update Presentation
Slide 2: HEG Limited - Profile
HEG Limited - Profile HEG Limited (henceforth HEG) is a leading graphite electrode manufacturer & exporter HEG produces two grades of graphite electrodes - High Power & Ultra High Power - used in manufacturing steel through the Electric Arc Furnace (EAF) route Exports over 75% of its production to m
Slide 3: Global Steel Industry
Global Steel Industry World crude steel production for the 65 countries, which produces 99 % of the alloy, during first 9 months of 2014 was up by 2.1 % to 1230.8 MT. The EU showed an increase of 2.9% while Asia and North America reported growth of 2.5% and 2.3% respectively in the first Nine Months
Slide 4: Graphite Electrodes Market & EAF
Graphite Electrodes Market & EAF 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 (US$ 3.5 billion); with the steel industry being the
Slide 5: Factors leading to rise of EAF capacities
DRI now becoming Significantly less an economical feed; Factors leading to rise carbon emissions; Carbon Makes EAF secured of EAF capacities emissions taxes & other against volatility of steel restrictions imposed by govt. to scrap prices; Streamlines EAF discourage BOF steelmaking steelmaking proce
Slide 6: Financial Snapshot (over last 2 quarters)
Financial Snapshot (over last 2 quarters) In Rs. Crore (except EPS) Q2 FY14 Q2 FY15 Net Operating Income 301.93 323.41 EBITDA* 53.27 53.44 EBITDA Margin 17.7% 16.52% EBIT 35.43 34.71 EBIT Margin 11.7% 10.7% Forex gains/(loss) (9.20) (8.53) PAT 5.06 5.57 PAT Margin 1.67% 1.72% EPS 1.27 1.39 * EBITDA
Slide 7: EBITDA & EBIT Margins
EBITDA & EBIT MARGINS Note - EBITDA includes Other Income & excludes Exceptional Items 7
Slide 8: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes In Rs. Crore Graphite Electrodes Q2FY15 Q1FY15 Q4FY14 Net Sales 319.47 342.61 494.31 Export (% of sales) 77% 83% 84% EBITDA Margin 8.79% 10.30% 9.70% EBIT Margin 4.14% 5.76% 6.60% Capital Employed 880.63 914.85 979.97 Capacity utilisation at around 70% dur
Slide 9: Segmental Performance – Power
Segmental Performance – Power In Rs. Crore Power Q2FY15 Q1FY15 Q4FY14 Net Sales 56.45 56.14 69.16 EBITDA Margin 43% 44% 52% EBIT Margin 37% 38% 47% Capital Employed 173.04 183.23 190 Generation at Hydro plant , TawaNagar affected in the quarter, due to insufficient rains in MP and consequent late st
Slide 10: Future Outlook
Stable Outlook envisaged in the year, to bring consistency in operations. Drop in Crude Oil prices and poor demand, Needle coke prices expected . to soften further in the coming year. Future Outlook Graphite Electrode Industry in India hopeful of getting relief, from large dumping of imports from Ch
Slide 11: Thank You
Thank You Mr. Raju Rustogi – Chief Financial Officer HEG Limited Ph: +91 120 244 4541 Fax: +91 120 254 1575 Email: r.rustogi@lnjbhilwara.com 11