Slide 1: Q4 FY14 Investor Update Presentation
Q4 FY14 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 Global steel output in 2013 was up by 3.5 % to 1.6 billion tonnes. In the previous year, the production was increased only by 1.2 per cent due to global demand slowdown World Steel production without China has been stagnant in last few years. Whatever growth has come, has been
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 5 quarters)
Financial Snapshot (over last 5 quarters) In Rs. Crore (except EPS) Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Net Operating 446.3 235.27 301.93 428.19 501.43 Income EBITDA* 72.92 40.63 53.27 88.54 85.31 EBITDA Margin 16.34% 17.27% 17.64% 20.68% 17.01% EBIT 58.16 24.12 35.43 69.40 66.14 EBIT Margin 13.
Slide 7: Net Operating Income
Net Operating Income 600 500 Rs crore 400 300 501.43 446.3 428.19 200 301.93 235.27 100 0 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 7 Note - EBITDA includes Other Income & excludes Exceptional Items
Slide 8: EBITDA & EBIT Margins
EBITDA & EBIT MARGINS 25.00% 20.00% 15.00% EBIT EBITDA 10.00% 5.00% 0.00% Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 8 Note - EBITDA includes Other Income & excludes Exceptional Items
Slide 9: PAT and Forex Income
PAT and Forex Income 60 50 47.6 44.31 40 35.14 30 Crore 20 Rs. 10 2.58 5.06 1.48 0 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 -10 -2.3 -9.32 -9.2 -20 -15.32 PAT Forex Gains/Loss 9
Slide 10: PAT Margin in last Quarters
PAT Margin in last 5 Quarters 12 10.35 10 9.28 7.87 8 6 Rs. Crore 4 1.68 2 0 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 -2 -4 -3.96 -6 PAT Margins (%) 10
Slide 11: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes In Rs. Crore Graphite Electrodes Q4FY14 Q3 FY14 Q2 FY14 Net Sales 494.31 414.55 294.58 Export (% of sales) 84% 80% 77.3% EBITDA Margin 9.7% 12% 10.6% EBIT Margin 6.6% 8.4% 5.9% Capital Employed 979.97 1044.46 1028.73 Capacity utilisation in excess of 95% d
Slide 12: Segmental Performance – Power
Segmental Performance – Power In Rs. Crore Power Q4FY14 Q3 FY14 Q2 FY14 Net Sales 69.16 71.78 41.72 EBITDA Margin 52% 51% 42.8% EBIT Margin 47.1% 46.6% 37.8% Capital Employed 190 201.17 208.86 Reduced net sales in Qtr4, as operations in hydro facility are affected by seasons. Higher volume of sale o
Slide 13: Future Outlook
Overall optimism about the global steel industry would push the growth of graphite electrodes Industry outlook. Double digit growth in the Q4 of 2013-14, reflects on robust order book position. Stable outlook, as envisaged in the ensuing year, to bring consistency in operations and in turn, improved
Slide 14: 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 14