HEG Ltd

HEG Limited is a leading graphite electrode manufacturer, producing two grades of graphite electrodes - Ultra High Power (UHP) & High Power (HP) - used in producing steel through the Electric Arc Furnace (EAF) route. The company exports approximately 65% of its production to about 30 countries around the world.

For the quarter ended December 2016, HEG recorded net operating income of Rs. 246 crore as against Rs. 200 crore in the previous quarter, an increase of about 23%. EBITDA stood at Rs. 22 crore in the previous quarter improved to around Rs. 31 crore in the current quarter thereby reducing the net loss to Rs. 3 crore as compared to Rs. 13 crore reported in the immediately preceding quarter. Margins in graphite electrodes segment continue to be under pressure as the sale prices remain flat during the quarter.

The company had an interest outgo of Rs.14 crore and this is what pushed the company into the red. HEG ended the quarter with a net loss of Rs.3 crore v/s loss of Rs.13 crore in Q2 though a YoY reverse turnaround from net profit of Rs.6 crore.

The total debt as on date stands at Rs. 660 crore vis-à-vis about Rs. 736 crore as on 31st March 2016. This comprises of Rs. 243 crore of term debt and the balance on account of working capital loans.  The repayment during FY17 comprised Rs. 108 crore, out of which it has already repaid Rs. 91 crore and next fiscal it is Rs. 156 crore of repayment.  

The company’s equity stands at Rs.40 crore and promoters stake is at 58.79%.