Slide 1: Investors presentation cover letter to stock exchanges
PRO UD TO OE INDIAN PRI VILE GED TO BE GLOBAL HEGjSECTIj2018 1st February, 2018 1 BSE Limited 2 Nation~l Stock Exchange of India Limited 25 th Floor, P JTowers Exchange Plaza, 5th Floor Dalal Street Plot No.Cjl, G Block, Bandra - Kurla Complex MUMBAI - 400 001. Bandra (E), Scrip Code: 509631 MUMBAI
Slide 2: Q3 of FY18 Investor Update Presentation
Q3 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 5.3 % in world crude steel production to 1691 million tons for CY’17 vs CY’16 . Crude Steel Change Change Growth Areas %↑ % of world pdn 2014 2015 2016 2017 Production 2016 vs.2015 2017 vs.2016 Middle East 11.8 1.9 Africa 15
Slide 5: Chinese Crackdown on Polluting Industries Continues
CHINESE CRACKDOWN ON POLLUTING INDUSTRIES CONTINUES In the beginning of this year due to serious environmental concerns, the Chinese Government decided to crack down on about 12‐15 highly polluting industries leading to closure of almost 140 million mt of Induction furnace capacity and about 25‐30
Slide 6: Chinese Crackdown on Polluting Industries Continues
CHINESE CRACKDOWN ON POLLUTING INDUSTRIES CONTINUES Recent winter cut of 36 mmt in 5 months would further reduce China’s exports of steel & billets, thereby helping other countries increase their steel production leading to more demand of electrodes The Ministry of Industry and Information Techn
Slide 7: Chinese Crackdown on Polluting Industries Continues
CHINESE CRACKDOWN ON POLLUTING INDUSTRIES CONTINUES Strong demand of GE continues however Needle coke supply continues to be tight and suppliers are offering similar tonnages as last year and prices valid for one quarter only, withdrawing from past practice where they used to give prices valid for
Slide 8: Financial Snapshot
Financial Snapshot in Rs. Crore (except EPS) Q3 FY18 Q2 FY18 Q3 FY17 FY17 Net Operating Income 842.71 409.54 251.25 896.02 EBITDA* 562.80 192.29 30.45 87.86 EBITDA Margin 66.79% 46.95% 12.12% 9.81% EBIT 543.92 174.09 12.13 13.94 EBIT Margin 64.54% 42.51% 4.83% 1.56% PAT 342.11 113.67 (3.51) (50.05)
Slide 9: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes in Rs. Crore Q3 FY18 Q2 FY18 Q3 FY17 FY17 Net Sales 831.29 407.01 242.65 870.25 Export (% of sales) 65% 63% 66% 60% EBITDA Margin 64.8% 43.3% (0.4)% (1.78)% EBIT Margin 62.9% 39.6% (6.66)% (8.81%) Capacity utilisation at around 84% during the Qtr. Order bo
Slide 10: Segmental Performance – Power
Segmental Performance – Power in Rs. Crore Q3 FY18 Q2 FY18 Q3 FY17 FY17 Net Sales 69.32 52.17 64.04 216.93 EBITDA Margin 34.7% 29.7% 47.7% 47.6% EBIT Margin 30.2% 23.7% 43.1% 41.7% Tawa nagar hydro facility is rain dependant and as expected, ran though out Q3 affecting both the top line and bottom‐l
Slide 11: Future Outlook
Future Outlook Consolidation in Graphite Electrode Industry coupled with rising demand will help in improving capacity utilization going forward Production through EAF route is expected to be higher in China as well as in the rest of the world Electrode sale prices are expected to stabilize at
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 11