Heg Limited · NSE:HEG
Heg — Q1 FY2018 Earnings Presentation
12 slides from Heg's earnings presentation, August 2017
Slide 1: Proud to be Indian, Privileged to be Global
My Az OU PROUD TO GE INDIAN PRIVILEGED TO BE GLOBAL HEG/SECTT/ 2017 9m August, 2017 1 BSE Limited 2 | National Stock Exchange of India Limited 25th Floor, P J Towers Exchange Plaza, Sth Floor Dalal Street Plot No.C/1, G Block, Bandra - Kurla Complex MUMBAI - 400 001. Bandra (E), Scrip Code : 509631
Slide 2: Q1 of FY18 Investor Update Presentation
Q1 of FY18 Investor Update Presentation
Slide 3: 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 60
Slide 4: Global Steel Industry
Global Steel Industry World Steel Association (WSA), reported a growth of 4.5 % in world crude steel production to 836 million tons for H1’ 17 vs H1’ 16 . Change Growth Areas %↑ % of world pdn Crude Steel Change 2017 2014 2015 2016 2017 vs.2016 Asia 4.6 70.9 Production 2016 vs.2015 (Jan – Jun) (Ja
Slide 5: China's pollution crackdown & Graphite electrodes Scenario
China’s pollution crackdown & Graphite electrodes Scenario Crackdown on pollution by Chinese Government starting from Jaunary’2017 has led to closure of some identified highly polluting industries by June’17. Induction Furnace steel and Mini Mill capacity of more than 100 million ton has been cl
Slide 6: China's pollution crackdown & Graphite electrodes Scenario
China’s pollution crackdown & Graphite electrodes Scenario In first six months of the year, Chinese steel exports fell by 28% to 41 million metric tons. Billet exports from China have now come down immensely, helping in increase in melting regions like Turkey, South East Asia and Middle East, le
Slide 7: China's pollution crackdown & Graphite electrodes Scenario
China’s pollution crackdown & Graphite electrodes Scenario The main raw material Needle Coke is finding an alternate usage in the industry to make Lithium Ion batteries thus putting pressure on supply side. There have been closures of several Graphite plants over the past few years and consolida
Slide 8: Financial Snapshot
Financial Snapshot in Rs. Crore (except EPS) Q1 FY18 Q4 FY17 Q1 FY17 FY17 Net Operating Income 213.71 267.19 173.87 896.02 EBITDA* 24.12 30.65 4.25 87.78 EBITDA Margin 11.28% 11.47% 2.45% 9.80% EBIT 6.33 12.43 (14.87) 13.87 EBIT Margin 2.96% 4.65% (8.55)% 1.55% PAT (8.43) (3.86) (28.97) (50.10) PAT
Slide 9: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes in Rs. Crore Q1 FY18 Q4 FY17 Q1 FY17 FY17 Net Sales 212.42 258.81 172.16 870.25 Export (% of sales) 63% 63 % 60% 60.% EBITDA Margin 1.53% 2.15% (9.13)% (1.78)% EBIT Margin (5.41)% (4.64)% (17.84)% (8.81%) Capacity utilisation at around 71% during the Qtr.
Slide 10: Segmental Performance – Power
Segmental Performance – Power in Rs. Crore Q1 FY18 Q4 FY17 Q1 FY17 FY17 Net Sales 54.24 58.42 36.32 216.93 EBITDA Margin 38.48% 48.26% 52.34% 47.61% EBIT Margin 32.83% 42.27% 43.34% 41.72% Tawa nagar hydro facility is rain dependant and hence do not operate in Q1 of each financial year, affecting bo
Slide 11: Future Outlook
Future Outlook Higher production through EAF route envisaged, as the cost balance tilts in favor of EAF over BOF route. Recent Industry consolidation in Graphite Electrode Industry to improve capacity utilization going forward. Electrode sale prices expected to increase with the enhanced capac
Slide 12: Thank You
Thank You Mr. Raju Rustogi – CFO & COO HEG Limited Ph: +91 120 244 4541 Fax: +91 120 254 1575 Email: r.rustogi@lnjbhilwara.com 10