Slide 1: Q4 and FY 2019 Investor update presentation cover letter
PROUD TO BE INDIAN PRIVILEGED TO BE GLOBAL HEG/ SECTT12019 23 rd May, 2019 1 BSE Limited 2 National Stock Exchange of India Limited 25 th Floor, P J Towers Exchange Plaza, 5th Floor Dalal Street Plot No.C/1, G Block, Bandra - Kurla Complex MUMBAI - 400 001. Bandra (E), Scrip Code: 509631 MUMBAI - 40
Slide 2: Q4 and FY19 Investor Update Presentation
Q4 and FY19 Investor Update Presentation April 2018
Slide 3: HEG is part of LNJ Bhilwara group
HEG is part of LNJ Bhilwara group a diversified, reputed and large Indian business house having more than five decades of industrial experience and presence in Power Generation & Textiles Graphite Electrodes Power Consultancy IT Enabled Services HEG Ltd © LNJ Bhilwara Group 2
Slide 4: 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 approximately 70%
Slide 5: World's Largest Single Site Graphite Electrode Plant
World’s Largest Single Site Graphite Electrode Plant HEG Ltd © LNJ Bhilwara Group 4
Slide 6: R&D Center
R&D Center R&D set up to corroborate the Quality & Improvement Drives with small scale production facilities The focus is also on development of new product lines Development is focused towards Carbon 5
Slide 7: Graphite Electrode Industry – Our Unique Strengths
Graphite Electrode (GE) Industry – Our Unique Strengths GE- An indispensable material for Electric Arc Furnaces (EAF) for Steel production EAF accounts for approx 45% of total World Steel Production (Without China) High Entry Barrier – HEG the last new entrant in the world -1977 State of the
Slide 8: Global Steel Market Outlook :- Apr 2019
Global Steel Market Outlook :- Apr 2019 2019 off to slow start Global steel markets began 2019 in a lack luster fashion with ample supply & tepid demand putting pressure on steel prices. Macroeconomic data has revealed some downstream weakness, particularly in manufacturing segments US China US, cru
Slide 9: China's finished steel exports- Monthly & Year Wise Trends
China's finished steel exports- Monthly & Year Wise Trends -30% -8.1% 70 112 108 93 47 Expected Annualized 75 69 23 Actual CY-14 CY-15 CY-16 CY-17 CY-18 CY-19 (Jan-Apr 19) • Over January-April, China’s steel export volume totalled 23.35 million MT, up 8.3% on year. • Chinese steel exporters expects
Slide 10: World Crude Steel Scenario CY 2018 & 2019
WORLD CRUDE STEEL SCENARIO CY 2018 & 2019 (Q1 2019) MMT % growth over Previous Year Rest of the Year Total (mmt) China Rest of the World China Overall World 2,014 1,669 822 847 0.0 2.3 1.2 2,015 1,620 804 816 -2.2 -3.6 -2.9 2,016 1,627 808 820 0.5 0.4 0.4 2,017 1,730 871 859 7.8 4.8 6.3 2,018 1,809
Slide 11: EAF World Production – With & Without China
EAF World Production –With & Without China EAF World EAF World w/o China Figures in mmt 531 500 472 454 448 431 429 429 434 422 415 404 397 409 357 398 404 383 383 380 373 372 366 360 366 353 356 301 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(P) 2019 (P) Source: WSA HEG Ltd © L
Slide 12: Financial Snapshot
Financial Snapshot in Rs. Crore (except EPS) Q4 FY19 Q3 FY19 Q2 FY19 Q1 FY19 Q4 FY18 FY19 FY18 REVENUE FROM OPERATION 1347 1865 1794 1587 1292 6593 2758 EBITDA* 830 1351 1389 1197 954 4767 1734 EBITDA Margin 62% 72% 77% 75% 74% 72% 63% EBIT 812 1332 1371 1180 937 4695 1661 EBIT Margin 60% 71% 76% 74
Slide 13: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes Q4 Q3 Q2 Q1 Q4 FY19 FY18 FY19 FY19 FY19 FY19 FY18 Net Sales (Rs.crores) 1344 1858 1793 1587 1288 6582 2739 Export (% of sales) 77% 80% 72% 69% 79% 75% 71% EBITDA Margin 58% 71% 77% 75% 74% 71% 61% EBIT Margin 57% 70% 76% 74% 73% 70% 59% HEG Ltd © LNJ Bhilw
Slide 14: Segmental Performance – Power
Segmental Performance – Power Q4 Q3 Q2 Q1 Q4 FY 19 FY18 FY19 FY19 FY19 FY19 FY18 Net Sales (Rs.crores) 29.37 35.37 28.85 27.88 40.66 121.47 213.80 EBITDA Margin 2% NA (16)% (6)% 11% (5)% 28% EBIT Margin (8)% (8)% (26)% (18)% 4% (15)% 23% 1. Coal availability under FSA with Coal India acutely short.
Slide 15: Balance Sheet as at 31st March 2019
Balance Sheet as at 31st March 2019 in Rs. Crores Standalone Consolidated Particulars 31‐03‐2019 31‐03‐2018 31‐03‐2019 31‐03‐2018 Audited Audited Audited Audited A ASSETS (1) Non‐current assets a) Property, Plant and Equipment 784.48 829.30 784.48 829.30 b) Capital work‐in‐progress 18.58 1.61 18.58
Slide 16: Balance Sheet as at 31st March 2019
Balance Sheet as at 31st March 2019 in Rs. Crores Standalone Consolidated Particulars 31‐03‐2019 31‐03‐2018 31‐03‐2019 31‐03‐2018 Audited Audited Audited Audited B EQUITY & LIABILITIES Equity (a) Equity share capital 38.60 39.96 38.60 39.96 (b) Other equity 3,680.40 1,768.66 3,755.09 1,867.56 LIABIL
Slide 17: Profit & Loss for the period ended 31st March 2019
Profit & Loss for the period ended 31st March 2019 in Rs. Crores Quarter Ended Financial Year Ended Consolidated Sl. No. Particulars Audited Unaudited Audited Audited Audited Audited Audited 31‐03‐2019 31‐12‐2018 31‐03‐2018 31‐03‐2019 31‐03‐2018 31‐03‐2019 31‐03‐2018 I Revenue from Operation(Refer N
Slide 18: Profit & Loss for the period ended 31st March 2019
Profit & Loss for the period ended 31st March 2019 in Rs. Crores Quarter Ended Financial Year Ended Consolidated Sl. No. Particulars Audited Unaudited Audited Audited Audited Audited Audited 31‐03‐2019 31‐12‐2018 31‐03‐2018 31‐03‐2019 31‐03‐2018 31‐03‐2019 31‐03‐2018 VI Exceptional Items ‐ ‐ ‐ ‐ ‐ ‐
Slide 19: Thank You
Thank You Ms Dimple Momaya heg@adfactorspr.com +91 98207 62036 Mr.Manish Gulati, COO & CMO Mr. Gulshan Kr.Sakhuja, CFO HEG Limited Ph: +91 9910103865 Fax: +91 120 254 1575 Email: manish.gulati@lnjbhilwara.com gulshan.sakhuja@lnjbhilwara.com HEG Ltd © LNJ Bhilwara Group 18