Heg Limited · NSE:HEG
Heg — Q1 FY2015 Earnings Presentation
14 slides from Heg's earnings presentation, 2014
Slide 1: Q1 FY15 Investor Update Presentation
Q1 FY15 Investor Update Presentation 1
Slide 2: HEG Limited - Profile
HEG Limited - Profile HEG Limited (henceforth HEG) is a leading graphite electrode manufacturer & exporter HEG p produces two g grades of g graphite p electrodes - High g Power & Ultra High g Power - used in manufacturing steel through the Electric Arc Furnace (EAF) route Exports over 75% of its pro
Slide 3: Global Steel Industry
Global Steel Industry World crude steel production for the 65 countries, which produces 99 % of the alloy, during first 6 months of 2014 was up by 2.5 2 5 % to 821.4 821 4 MT. June the production rose by 3.1% MT Only in June, 3 1% to 137 MT. The EU showed an increase of 3.8% while Asia and North Ame
Slide 4: Graphite Electrodes Market & EAF
Graphite Electrodes Market & EAF Graphite p electrodes find their biggest gg 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 1 1 million tonnes per year (US$ 3.5 billion); with the steel industry
Slide 5: Factors leading to rise in EAF capacities
DRI now becoming Significantly less an economical feed; o rise e carbon emissions; Carbon Makes EAF secured pacities emissions taxes & other against volatility of steel scrap prices; Streamlines EAF ng to restrictions imposed by govt. govt to discourage BOF steelmaking steelmaking process; Opens up
Slide 6: Financial Snapshot (comparison quarter-on-quarter)
Financial Snapshot (comparison quarter-on-quarter) In Rs. Crore (except EPS) Q1 FY14 Q1 FY15 Nett Operating N O ti 235.27 347.31 Income EBITDA* 40.63 61.85 EBITDA Margin 17.26% 17.80% EBIT 24 12 24.12 42 50 42.50 EBIT Margin 10.25% 12.23% Forex gains/(loss) (15.32) (2.15) PAT (9.32) 18.94 PAT Margin
Slide 7: Net Operating Income (Rs. Crore)
N tO Net Operating ti Income I (Rs. (R Crore) C ) 400 350 300 250 200 Series1 150 100 50 0 Q1 2013-14 Q1 2014-15 7
Slide 8: EBITDA & EBIT Margins
EBITDA & EBIT MARGINS Note - EBITDA includes Other Income & excludes Exceptional Items 8
Slide 9: PAT and FOREX Income (Rs crore)
PAT and FOREX Income (Rs crore) 9
Slide 10: PAT Margin in last Quarters
Rss. Crore PAT Margin in last 6 Quarters 10
Slide 11: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes In Rs. Crore Graphite Electrodes Q1FY15 Q4FY14 Q3 FY14 Net Sales 342.61 494.31 414.55 Export (% of sales) 83% 84% 80% g EBITDA Margin 10.3% 9.7% 12% EBIT Margin 5.2% 6.6% 8.4% Capital Employed 914.85 979.97 1044.46 Capacity utilisation at around 70% during
Slide 12: Segmental Performance – Power
Segmental Performance – Power In Rs. Crore Power Q1FY15 Q4FY14 Q3 FY14 Net Sales 56.14 69.16 71.78 EBITDA Margin 44% 52% 51% EBIT Margin 38.1% 47.1% 46.6% Capital Employed 188 23 188.23 190 201 17 201.17 Reduced net sales in Qtr1, as hydro facility is practically closed in this Qtr. Also Thermal gen
Slide 13: Future Outlook
Overall optimism about the global steel industry would push the growth of graphite electrodes Industry outlook. utlook Robust order book position and relatively stable outlook envisaged in the year, to bring consistency in operations and improved performance. F re Ou Pressure on Needle coke - the ke
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