HEG Ltd. - Interim / Quarterly Report 2021

PROUO TO BE INDIAN PRIVILEGED TO BE GLOBAL

HEG/ SECTI / 2021

11th November, 2021

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1 BSE Limited 2 25th Floor, P J Towers Dalal Street MUMBAI -400 001. Scrip Code : 509631	National Stock Exchange of India Limited Exchange Plaza, 5th Floor Plot No.C/1, G Block, Bandra - Kurla Complex Bandra (E), MUMBAI-400 051. Scrip Code : HEG

Sub: Investors presentation on the Unaudited Financial Results of the Company for the quarter & half year ended 30[th ] September, 2021.

Dear Sirs,

Please find enclosed a copy of Investors Presentation on the Unaudited Financial Results of the Company for the quarter & half year ended 30th September, 2021 for your information and record please.

The copy of same is also being uploaded on the website of the Company.

Thanking you, Yours faith.fully, For HEG Limited r[�"] , :t: \0 C ! �. � :-· > ,� )-� ' Vivek Chaudhary Company Secretary* A-13263 [email protected]

Encl: As above

HEG LIMITED

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Corporate Office Regd. Office Bhilwara Towers,A-12, Sector-1 Noida - 201 301 (NCR-Delhi), India (Madhya Pradesh), India Tel.: +91-120-4390300 (EPABX) Fax:+91-120-4277841 Fax: +91-7480-233522 Website: w .lnjbhilwara.com Website: www.hegltd.com Corporate Identification No.: L23109MP1972PLC008290

Regd. Office Mandideep (Near Bhopal) Distt. Raisen • 462046 (Madhya Pradesh), India Tel.: +91-7480-405500, 233524 to 233527 Fax: +91-7480-233522 Website: www.hegltd.com

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HEG LIMITED Investor Presentation

Performance Highlights Q2 of FY 2021-22

HEG is part of LNJ Bhilwara group a diversified, reputed and large Indian business house having more than five decades of industrial experience and presence in

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THE FAMILY TREE

IT Enabled Services

Buds flower in our service sector offerings.

Bhilwara Infotech Ltd. – IT Software
Bhilwara Scribe Pvt. Ltd. – Medical transcription

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Textiles

The roots of our Group heritage

RSWM Ltd.
Maral Overseas Ltd.
BSL Ltd.
BMD Pvt. Ltd.
Bhilwara Technical Textiles Ltd.

Power Generation & Power Consultancy

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•
•
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The branches spread forth, powered by

Bhilwara Energy Ltd.
Malana Power Company Ltd.
AD Hydro Power Ltd.

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Graphite Electrodes

Standing tall, the shaft supports the branches

HEG Limited

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HEG Ltd © LNJ Bhilwara Group

HEG Limited – Profile

HEG Limited is a leading graphite electrode manufacturer & exporter globally.
Exports approximately 70% of its production to about 30 countries around the world.
Diversified customers - supplying large portion of production to top 20 steel companies of the world.
Graphite electrodes manufacturing plant (capacity of 80,000 tons /Year) located at Mandideep in MP, India - is the largest single-site facility in the world. Further expanding to 100,000 tons in by early 2023.
Captive power generation capacity of around 76.5 mw (2 thermal power plants & 1 hydro power plant)

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HEG Ltd © LNJ Bhilwara Group
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World’s Largest Single Site Graphite Electrode Plant
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Business Overview

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Graphite Electrode Capacity (KMT/Year)

HEG is among the world’s top five graphite electrode manufacturers
Steel production levels have improved significantly in last one year in rest of the world excluding China.
The Steel prices touched record levels recently resulting in record high margins for steel companies globally .
Electrode prices have improved Q-o-Q & are expected to strengthen further.
Prices of Needle coke & few other inputs are also increasing Q-o-Q.

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230
210
98 96
80
32 27
GrafTech Showa GIL Tokai HEG NCK SEC
Denk0 Carbon
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HEG Sales share among Exports & Domestic Market

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Export (%) Domestic (%)
80% 75% 75%
80%
68% 73% 65%
62%
35%
38% 32% 25% 25%
27%
20% 20%
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
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HEG Ltd © LNJ Bhilwara Group

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1977 - Established in Financial (appx 25% equity) / Technical participation of Pechiney, France
1992 - Pechiney sold their Graphite business to SGL, Germany & Indian Promoters bought these shares in HEG

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Our Growth

1995 / 2011 – Kept expanding from 10,000 mt in small tranches & in 2011 took a quantum leap from 60,000 to 80,000 mt
Single largest Graphite plant in the world under one roof.
Consistently exporting appx 65-70% of production to more than 30 countries and to more than 100 customers around the world incl ArcelorMittal, Nucor, Posco, Tata, Sail, Jindals, Sabic, Gerdau, Ferroatlantica, Celsa etc.
Capacity Expansion to 100,000 mt by early 2023..

R&D Center

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R&D set up to corroborate the Quality & Improvement Drives with small scale production facilities
The focus is also on development of new product lines
Development is focused towards Carbon

TOP 10 CRUDE STEEL-PRODUCING COUNTRIES- 2021 vs 2020 (9 months)

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Crude Steel Crude Steel
Rank Country Absolute Change %2021/2020
Jan-Se CY-2021 MMt Jan-Se CY-2020 MMt
p ( ) p ( )
1 China 805.9 790.1 15.8 2.0%
2 India 87.3 70.8 16.5 23.3%
3 Japan 72.1 61.2 10.9 17.9%
4 United States 64.4 53.7 10.6 19.8%
5 Russia 56.4 53.1 3.3 6.2%
6 South Korea 52.9 49.5 3.4 6.8%
7 Germany 29.9 25.8 4.2 16.2%
8 Turkey 29.9 26.0 3.9 15.0%
9 Brazil 27.2 22.6 4.6 20.2%
10 Iran 19.3 21.1 -1.8 -8.6%
Subtotal 1,245.3 1,174.0 71.3 2.0%
Source WSA World 1,461.1 1,354.5 106.6 7.9%
World ex China 653.4 566.0 87.5 15.5%
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HEG Ltd © LNJ Bhilwara Group

TOP 10 CRUDE STEEL-PRODUCING COUNTRIES- Q2 vs Q3’2021 (3 months)

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TOP 10 CRUDE STEEL-PRODUCING COUNTRIES- Q2 vs Q3’2021 (3 months)
Rank Country Crude Steel Apr-Jun CY-2021(MMt) Crude Steel Jul-Sep CY-2021(MMt) Absolute Change	%Q3/Q2
1 China 292.3 243.8 -48.5			-16.6%
2 India 28.0 29.2 1.2			4.1%
3 Japan 24.3 24.1 -0.3			-1.1%
4 United States 21.7 22.3 0.6			2.9%
5 Russia 19.3 18.3 -1.0			-5.2%
6 South Korea 17.6 17.7 0.1			0.5%
7 Germany 10.4 9.3 -1.2		-11.1%
8 Turkey 9.9 10.2 0.3			2.9%
9 Brazil 9.3 9.2 -0.0		-0.5%
10 Iran 8.1 4.0 -4.0			-49.9%
Subtotal 440.8 387.9 -51.8			-12.0%
Source WSA World 517.1 462.6 -54.5			-10.5%
World ex China 224.8 218.8 -6.0			-2.7%

HEG Ltd © LNJ Bhilwara Group

Financial Snapshot (Standalone)

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in Rs. Crore (except EPS)

PARTICULARS	Q2 FY 21-22	Q1 FY 21-22	FY 20-21	FY 19-20	FY 18-19	FY 17-18
REVENUE FROM OPERATIONS	518	414	1256	2,149	6,593	2,758
EBITDA*	167	94	54	138	4,767	1,734
EBIT	149	76	(19)	66	4,695	1,661
PAT	113	56	(25)	53	3,050	1,081
EPS	29.28	14.46	(6.56)	13.83	763.60	270.61

EBITDA Margin (%)	31%	22%	4%	6%	72%	63%
PAT Margin (%)	21%	13%	(2%)	2%	46%	39%

EBITDA includes Other Income

Quarterly Performance Trend (Standalone)

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EBITDA includes Other Income

Note:

During the quarter ended 30th September 2021, the rates and other guidelines have been notified under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme vide notification dated August 17, 2021. Accordingly, the Company has accrued the benefits amounting to Rs. 4.85 crores under the aforesaid scheme on the eligible export sales for the period from January 1, 2021 to September 30, 2021, out of which Rs.3.24 crores pertains to eligible export sales for the period from January 1, 2021 to June 30, 2021.

Investments and Borrowings (Standalone)

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Investments including Cash & Cash equivalents and excluding investment in Associates.

(in Rs. Cr)

Financial Results for the Quarter & Half year ended 30[th] Sep 2021 Standalone

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Financial Results for the Quarter & Half year ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Half year ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Half year ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Half year ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Half year ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Half year ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Half year ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Half year ended 30th Sep 2021 Standalone (in Rs. Cr)
Sl. No.	Particulars	Quarter Ended			Half Year Ended		Year Ended
		30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31-03-2021
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
I II III IV V	Revenue from Operation	517.56	413.69	322.88	931.25	556.17	1,256.23
	Other Income	25.35	22.06	16.41	47.41	62.45	112.91
	Total Revenue (I+II)	542.91	435.75	339.29	978.66	618.62	1369.14
	Expenses Cost of materials consumed Purchase of stock -in-trade Changes in inventories of finished goods, work-in- progress and stock-in-trade Employee benefits expense Finance cost Depreciation and amortisation expense Power and Fuel (Net of Interdivisional Purchases) Other Expenses Total expenses(IV)	191.26 - 0.11 21.35 1.15 18.12 60.96 101.95 394.90	160.64 - 19.38 17.88 1.17 18.73 56.06 87.32 361.18	158.29 - 93.12 12.51 3.04 18.34 30.19 70.64 386.13	351.90 - 19.49 39.22 2.32 36.85 117.02 189.27 756.08	244.81 - 159.24 26.28 9.01 36.11 58.10 120.93 654.48	504.94 - 304.15 54.53 11.37 73.12 139.38 312.41 1399.90
	Profit/(Loss) before exceptional items and tax(III-IV)	148.01	74.57	(46.84)	222.58	(35.86)	(30.76)
VI VII	Exceptional Items	-	-	-	-	-	-
	Profit/(Loss) before Tax (V-VI)	148.01	74.57	(46.84)	222.58	(35.86)	(30.76)

Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Standalone (in Rs. Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Standalone (in Rs. Cr)
Sl. No.	Particulars	Quarter Ended			Half Year Ended		Year Ended
		30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31-03-2021
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
VII	Profit/(Loss) before Tax (V-VI)	148.01	74.57	(46.84)	222.58	(35.86)	(30.76)
VIII IX X XI XII XIII XIV	Tax expense (1) Current Tax (2)Deferred Tax	35.88 (0.87)	17.34 1.43	0.20 (13.13)	53.22 0.56	0.20 (12.91)	0.20 (5.66)
	Net Profit/(Loss) for the period (VII-VIII)	113.00	55.80	(33.91)	168.80	(23.15)	(25.30)
	Other Comprehensive Income (Net of Taxes) A (i) Items that will not be reclassified to profit or loss (ii) Income tax relating to items that will not be reclassified to profit or loss B (i) Items that will be reclassified to profit or loss (ii) Income tax relating to items that will be reclassified to profit or loss	(0.64) 0.16 - -	- - - -	0.91 (0.23) - -	(0.64) 0.16 - -	0.91 (0.23) - -	1.40 (0.35) - -
	Total Comprehensive Income for the period	112.52	55.80	(33.23)	168.32	(22.47)	(24.25)
	Paid -Up Equity Share Capital ( Face Value`10/- per share) Reserves (Excluding Revaluation Reserves) Earnings Per Share (₹) (not annualised except for the year ended 31st March,2021) - Basic (Rs.) - Diluted (Rs.)	38.60 - 29.28 29.28	38.60 - 14.46 14.46	38.60 - (8.79) (8.79)	38.60 - 43.74 43.74	38.60 - (6.00) (6.00)	38.60 3,360.04 (6.56) (6.56)

Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)
Sl. No.	Particulars	Quarter Ended			Half Year Ended		Year Ended
		30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31-03-2021
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
I II III IV V VI VII	Revenue from Operation	517.56	413.69	322.88	931.25	556.17	1,256.23
	Other Income	25.35	22.06	16.41	47.41	62.45	112.91
	Total Revenue (I+II)	542.91	435.75	339.29	978.66	618.62	1,369.14
	Expenses Cost of materials consumed Purchase of stock -in-trade Changes in inventories of finished goods, work-in- progress and stock-in-trade Employee benefits expense Finance cost Depreciation and amortisation expense Power and Fuel (Net of Interdivisional Purchases) Other Expenses Total expenses(IV)	191.26 - 0.11 21.35 1.15 18.12 60.96 101.95 394.90	160.64 - 19.38 17.88 1.17 18.73 56.06 87.32 361.18	158.29 - 93.12 12.51 3.04 18.34 30.19 70.64 386.13	351.90 - 19.49 39.22 2.32 36.85 117.02 189.27 756.08	244.81 - 159.24 26.28 9.01 36.11 58.10 120.93 654.48	504.94 - 304.15 54.53 11.37 73.12 139.38 312.41 1,399.90
	Profit/(Loss) before exceptional items and tax (III-IV)	148.01	74.57	(46.84)	222.58	(35.86)	(30.76)
	Exceptional Items	-	-	-	-	-	-
	Profit/(Loss) before Tax(V-VI)	148.01	74.57	(46.84)	222.58	(35.86)	(30.76)

Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)	Financial Results for the Quarter & Halfyear ended 30th Sep 2021 Consolidated (in Rs.Cr)
Sl. No.	Particulars	Quarter Ended			Half Year Ended		Year Ended
		30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31-03-2021
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
VII	Profit/(Loss) before Tax(V-VI)	148.01	74.57	(46.84)	222.58	(35.86)	(30.76)
VIII IX X XI XII XIII XIV XV	Tax expense (1) Current Tax (2) Deferred Tax Share of Profit/(loss) of associates	35.88 (0.87) 18.51	17.34 1.43 0.97	0.20 (13.13) 18.55	53.22 0.56 19.48	0.20 (12.91) 22.11	0.20 (5.66) 7.36
	Net Profit/(Loss) for theperiod(VII-VIII+IX)	131.52	56.77	(15.36)	188.28	(1.04)	(17.94)
	Other Comprehensive Income (Net of Taxes) A (i) Items that will not be reclassified to profit or loss (ii) Income tax relating to items that will not be reclassified to profit or loss B (i) Items that will be reclassified to profit or loss (ii) Income tax relating to items that will be reclassified to profit or loss C. Share of Other comprehensive Income of Associates	(0.64) 0.16 - - 0.02	- - - - 0.07	0.91 (0.23) - - (0.04)	(0.64) 0.16 - - 0.09	0.91 (0.23) - - (0.09)	1.40 (0.35) - - 0.24
	Total Comprehensive Income for the period	131.05	56.84	(14.72)	187.89	(0.45)	(16.65)
	Paid -Up Equity Share Capital ( Face Value`10/- per share) Reserves (Excluding Revaluation Reserves) Earnings Per Share (₹) (not annualised except for the year ended 31st March,2021) - Basic (Rs.) - Diluted(Rs.)	38.60 - 34.07 34.07	38.60 - 14.71 14.71	38.60 - (3.98) (3.98)	38.60 - 48.78 48.78	38.60 - (0.27) (0.27)	38.60 3456.48 (4.65) (4.65)

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Thank You

Mr.Manish Gulati : Executive Director : Mr.Om Prakash Ajmera Group CFO Mr.Gulshan Kr.Sakhuja : CFO HEG Limited Ph: +91 9910103865 Fax: +91 120 254 1575 Email: [email protected] [email protected]

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AI assistant

HEG Ltd. Interim / Quarterly Report 2021

61624_rns_2021-11-11_8647d73b-51e6-45f7-8ad6-3299f94a8b29.pdf

HEG LIMITED

HEG LIMITED Investor Presentation

HEG is part of LNJ Bhilwara group a diversified, reputed and large Indian business house having more than five decades of industrial experience and presence in

THE FAMILY TREE

IT Enabled Services

Textiles

Power Generation & Power Consultancy

Graphite Electrodes

HEG Limited – Profile

Business Overview

Graphite Electrode Capacity (KMT/Year)

HEG Sales share among Exports & Domestic Market

R&D Center

TOP 10 CRUDE STEEL-PRODUCING COUNTRIES- 2021 vs 2020 (9 months)

TOP 10 CRUDE STEEL-PRODUCING COUNTRIES- Q2 vs Q3’2021 (3 months)

Financial Snapshot (Standalone)

in Rs. Crore (except EPS)

Quarterly Performance Trend (Standalone)

Note:

Financial Results for the Quarter & Half year ended 30[th] Sep 2021 Standalone

Thank You

AI assistant

HEG Ltd. — Interim / Quarterly Report 2021

61624_rns_2021-11-11_8647d73b-51e6-45f7-8ad6-3299f94a8b29.pdf

HEG LIMITED

HEG LIMITED Investor Presentation

HEG is part of LNJ Bhilwara group a diversified, reputed and large Indian business house having more than five decades of industrial experience and presence in

THE FAMILY TREE

IT Enabled Services

Textiles

Power Generation & Power Consultancy

Graphite Electrodes

HEG Limited – Profile

Business Overview

Graphite Electrode Capacity (KMT/Year)

HEG Sales share among Exports & Domestic Market

R&D Center

TOP 10 CRUDE STEEL-PRODUCING COUNTRIES- 2021 vs 2020 (9 months)

TOP 10 CRUDE STEEL-PRODUCING COUNTRIES- Q2 vs Q3’2021 (3 months)

Financial Snapshot (Standalone)

in Rs. Crore (except EPS)

Quarterly Performance Trend (Standalone)

Note:

Financial Results for the Quarter & Half year ended 30[th] Sep 2021 Standalone

Thank You

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HEG Ltd. Interim / Quarterly Report 2021