Slide 1: Q3 of FY17 Investor Update Presentation
Q3 of FY17 Investor Update Presentation
Slide 2: 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 65
Slide 3: Global Steel Industry
Global Steel Industry IMF reported Global GDP growth for 2016 estimated at 3.1%, and projected to be 3.4% and 3.6% in 2017 and 2018 respectively World Steel Association (WSA), reported a growth of 0.8 % in world crude steel production to 1628 million tons for Jan – Dec’16. Growth Areas %↑ % of w
Slide 4: Indian Steel Industry
Indian Steel Industry Crude Steel production grows 8.5% to 72 mmt from 66.5 mmt for Apr-Dec’16 period. Steel imports at 5.5 mmt in Apr-Dec’16 declined by 37.4% over same period of last year as a result of various duties imposed - MIP, Safeguard duty and Anti Dumping Duties. Steel consumption g
Slide 5: Financial Snapshot (under Ind.AS)
Financial Snapshot (under Ind.AS) in Rs. Crore (except EPS) Q3 FY17 Q2 FY17 Q1 FY17 Net Operating Income 245.79 199.77 170.85 EBITDA* 30.65 22.24 4.25 EBITDA Margin 12.47% 11.13% 2.49% EBIT 12.33 3.97 (14.87) EBIT Margin 5.02% 1.99% (8.70%) PAT (3.16) (13.47) (28.92) PAT Margin (1.28%) (6.74%) (16.9
Slide 6: Segmental Performance – Graphite Electrodes
Segmental Performance – Graphite Electrodes in Rs. Crore Q3 FY17 Q2 FY17 Q1 FY17 Net Sales 237.19 192.70 161.45 Export (% of sales) 64.63% 53.21% 59.28% EBITDA Margin (0.40%) (2.00%) (9.90%) EBIT Margin (7.05%) (10.11%) (19.58%) Capacity utilisation at around 75%. Order book healthy. Graphite electr
Slide 7: Segmental Performance – Power
Segmental Performance – Power in Rs. Crore Q3 FY17 Q2 FY17 Q1 FY17 Net Sales 64.04 58.14 36.33 EBITDA Margin 47.72% 44.32% 52.34% EBIT Margin 43.07% 38.72% 43.34% Achieved peak generation of hydel power during the Quarter. Increased direct selling as a percentage of total power sale resulting in imp
Slide 8: Future Outlook - Steel
Future Outlook - Steel Average Steel output to increase by a mere 0.5% p.a. between 2016-2020, significantly lower than the 2.5% p.a. achieved during 2011-2015. Average Steel consumption to increase by a mere 0.4% p.a. between 2016-2020, significantly lower than the 2.8% p.a. achieved during 201
Slide 9: Future Outlook- Graphite Electrode
Future Outlook- Graphite Electrode Demand for graphite electrodes has started picking up. Inventory correction taking place at customers end. Electrode prices have bottomed out. Expect an uptrend in the near future. Raw material prices are also slated to go up. HEG order book for FY 17 healt
Slide 10: 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