HEG Ltd. — Interim / Quarterly Report 2025

Aug 19, 2024

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HEG/SECTT/2024

19[th] August, 2024

1	BSE Limited P J Towers Dalal Street MUMBAI - 400 001. Scrip Code : 509631	2	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 ended 30[th] June, 2024.

Dear Sirs,

Please find enclosed a copy of Investors Presentation on the Unaudited Financial Results of the Company for the quarter ended 30[th] June, 2024 for your information and record please.

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

Thanking you,

Yours faithfully, For HEG Limited

Digitally signed Vivek by Vivek Chaudhary Chaudhary Date: 2024.08.19 16:11:05 +05'30'

Vivek Chaudhary Company Secretary A-13263 heg.investor@lnjbhilwara.com

Encl: As above

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HEG LIMITED Investor Presentation

Performance Highlights Q1 of FY 2024-25

Graphite Electrode (GE)

• A consumable for Electric Arc Furnaces (EAF) for Steel production

• Used as electrical conductors in Electric Arc Furnaces to generate heat to melt steel scrap

• High-tech / High Entry Barrier – HEG the last new entrant in the world -1976

• EAF Steel emits one fourth carbon in the environment as compared to same Steel produced by traditional Blast Furnaces

As per World Steel Association, EAF Steel production (w/o China) has gone up from 44% to 49% between 2015 - 2022 - while China’s production through EAF is around 11% and is likely to go upto around 15-20% by 2025

HEG Ltd © LNJ Bhilwara Group

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HEG Limited – Unique Strengths

• Has been World’s Largest Single Site Graphite Electrode Plant under one roof with a capacity of 80,000 tons pa for a long time.

• Recently completed expansion to 100,000 tons to become the third largest producer of Graphite electrodes in the western world.

• Except ours, no additional capacity announced by any other company in the western world.

• Exporting approx. 65 - 70% of its production to about 35 countries around the world consistently since more than 20 years

• Diversified customer base - supplying large portion of production to top 20 steel companies of the world

• Captive power generation capacity of around 80 mw (Two thermal power plants & One hydro power plant)

HEG Ltd © LNJ Bhilwara Group

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GE Capacity Build up

Capacity Fig. in 000’MT

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120
100
80
60
100
40 80
66
52
20
30
14
0
1990 2002 2006 2009 2012 2023
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* w.e.f. Nov 2023
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HEG Ltd © LNJ Bhilwara Group

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Expanded plant at 100,000 tons now complete - Appearing on the horizon

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HEG Ltd © LNJ Bhilwara Group

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TOP 10 Crude Steel - Producing Countries

Crude Steel Production (mmt)	First six month Y-o-Y	First six month Y-o-Y		Q-o-Q Comparision
Sr. No Country	Jan-Jun'24 Jan-Jun'23 Y-o-Y (%)			Jan-Mar'24 Apr-Jun'24 Q-o-Q (%)
1 China 2 India 3 Japan 4 United States 5 Russia 6 South Korea 7 Germany 8 Iran 9 Turkey 10 Brazil	530.6 536.5 -1.1% 74.2 69.0 6.9% 42.7 43.8 -2.7% 40.0 40.9 -2.4% 36.8 37.9 -3.1% 31.5 33.7 -6.8% 19.4 18.5 4.3% 16.6 15.7 5.6% 18.6 15.9 14.5% 16.4 16.0 2.3%			256.2 270.4 5.5% 37.6 36.6 -2.6% 21.5 21.2 -1.0% 19.8 20.1 1.4% 18.4 18.4 -0.4% 16.1 15.4 -4.5% 9.7 9.7 -0.5% 7.6 9.0 18.6% 9.5 9.1 -4.7% 8.2 8.2 -0.8%
Total 71 countries	954.6 954.7 0.0%			468.3 482.4 3.0%
World ex china	424.1 418.3	1.4%		212.1 212.0 0.0%

Source: World Steel Association. Estimates are subject to revision in the next update. The table above represents 71 countries, HEG Ltd © LNJ Bhilwara Group

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Industry Outlook

1. Global crude steel production for H1 2024 remained flat at 954.6 mmt, unchanged from the same period last year.

2. India, the second-largest global steel producer, showed strong growth with production rising by 7.4% to 74.2 mmt

3. Steel production outside of China faces constraints due to subdued demand and geopolitical issues.

4. Chinese steel exports increased by 24% from Jan to Jun’2024 in comparison to the same period in 2023, reaching 53.4 mmt.

5. Supply-chain issues, like congestion and delays, are driven by geopolitical tensions. The threat from Yemen’s Houthis has disrupted Suez Canal routes, forcing ships to reroute around Africa, adding weeks to transit times and reducing capacity, contributing to rising shipping costs.

6. China's transition to (EAF) steel production stagnates, leading to an oversupply of Chinese electrodes and price decline.

7. GE demand remained sluggish, and prices continued to be under pressure, situation likely to stagnate for another 2-3 quarters

8. Expected initiatives for steel industry decarbonization are set to increase demand for graphite electrodes, driven by the adoption of EAF steelmaking , resulting in additional demand of 200,000 tons approx. by 2030 (excl China)

9. Considering the irreversible process of decarbonization, we are optimistic about the growth of GE demand in the medium to long run.

HEG Ltd © LNJ Bhilwara Group

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Sl. No.	Particulars	Quarter Ended	Quarter Ended	Quarter Ended	Year Ended
		30-06-2024	31-03-2024	30-06-2023	31-03-2024
		Unaudited	Audited	Unaudited	Audited
I	Revenue from operations	571.46	546.90	671.43	2,394.90
II	Other income	20.44	64.31	26.12	141.67
III	Total Income (I+II)	591.90	611.21	697.55	2536.57
IV	Expenses Cost of materials consumed Changes in inventories of finished goods and work-in-progress Employee benefit expenses Finance costs Depreciation and amortisation expense Power and fuel Other expenses	231.16 - 45.27 - 23.73 8.47 47.50 84.35 148.16	234.78 - 57.83 - 25.19 8.63 50.44 73.46 112.27	308.40 - (5.16) - 23.84 8.85 38.34 84.63 108.30	1,093.00 58.39 94.80 35.74 174.65 310.08 454.67
	Total expenses (IV)	588.64	562.60	567.20	2221.33
V	Profit/(loss) before exceptional items and tax (III-IV)	3.26	48.61	130.35	315.24
VI	Exceptional items	-	-	-	-
VII	Profit/(loss) before tax(V-VI)	3.26	48.61	130.35	315.24
HEG Ltd © LNJ Bhilwara Group

Sl. No.	Particulars	Quarter Ended	Quarter Ended	Quarter Ended	Year Ended
		30-06-2024	31-03-2024	30-06-2023	31-03-2024
		Unaudited	Audited	Unaudited	Audited
VII	Profit/(loss) before tax(V-VI)	3.26	48.61	130.35	315.24
VIII	Tax expense (1) Current tax (2)Deferred tax	7.57 (6.89)	15.07 (1.61)	31.34 1.45	74.58 9.12
IX	Profit/(loss) for theperiod(VII-VIII)	2.58	35.15	97.56	231.54
X	Other comprehensive income A (i) Items that will not be classified to profit or loss - Remeasurement of employee defined benefit plan (ii) Tax expense relating to items that will not be reclassified to profit or loss B (i) Items that will be reclassified to profit or loss (ii) Tax relating to items that will be reclassified to profit or loss	- - - -	0.48 (0.12) - -	- - - -	0.47 (0.12) - -
XI	Total other comprehensive income for the period (IX+X)	2.58	35.52	97.56	231.89
XII XIII XIV	Paid -up equity share capital ( face value ` 10/- per share) Other equity (excluding revaluation reserves) Earnings per share (₹) (for the quarter not annualised) - Basic (₹) - Diluted(₹)	38.60 0.67 0.67	38.60 9.11 9.11	38.60 25.28 25.28	38.60 4106.48 59.99 59.99
HEG Ltd © LNJ Bhilwara Group

	Financial Results for the Quarter ended 30th June 2024- Consolidated(In Rs. Cr)	Financial Results for the Quarter ended 30th June 2024- Consolidated(In Rs. Cr)	Financial Results for the Quarter ended 30th June 2024- Consolidated(In Rs. Cr)	Financial Results for the Quarter ended 30th June 2024- Consolidated(In Rs. Cr)	Financial Results for the Quarter ended 30th June 2024- Consolidated(In Rs. Cr)	Financial Results for the Quarter ended 30th June 2024- Consolidated(In Rs. Cr)
	Sl. No.	Particulars	Quarter Ended			Year Ended
			30-06-2024	31-03-2024	30-06-2023	31-03-2024
			Unaudited	Audited **(refer note 4) **	Unaudited	Audited
	I	Revenue from Operations	571.46	546.90	671.43	2,394.90
	II	Other Income	20.44	64.31	26.12	141.67
	III	Total Income(I+II)	591.90	611.21	697.55	2536.57
	IV	Expenses Cost of materials consumed Changes in inventories of finished goods and work-in- progress Employee benefits expense Finance cost Depreciation and amortisation expense Power and Fuel Other Expenses	231.16 45.27 23.82 8.47 47.50 84.35 148.17	234.78 57.83 25.26 8.63 50.44 73.46 112.78	308.40 (5.16) 24.03 8.85 38.34 84.63 108.36	1,093.00 58.39 95.27 35.74 174.65 310.08 455.73
		Total expenses	588.74	563.18	567.46	2222.86
	V	Profit/(Loss) before exceptional items and tax (III-IV)	3.16	48.03	130.10	313.71
	VI	Exceptional Items	-	-	-	-
	VII	Profit/(Loss) before Tax & Share of Profit/(Loss)of Associates(V-VI)	3.16	48.03	130.10	313.71

HEG Ltd © LNJ Bhilwara Group

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Financial Results for the Quarter ended 30[th] June 2024- Consolidated (In Rs. Cr)

Sl. No.	Particulars	Quarter Ended	Quarter Ended	Quarter Ended	Year Ended
		30-06-2024	31-03-2024	30-06-2023	31-03-2024
		Unaudited	Audited (refer note 4 )	Unaudited	Audited
VII	Profit/(Loss) before Tax & Share of Profit/(Loss)of Associates(V-VI)	3.16	48.03	130.10	313.71
VIII	Share of Profit/(Loss) of Associates	20.57	(1.66)	41.82	81.66
IX	Profit/(Loss) before Tax(VII+VIII)	23.73	46.37	171.92	395.37
X	Tax expense (1) Current Tax (2)Deferred Tax	7.58 (6.89)	15.07 (1.61)	31.34 1.45	74.58 9.12
XI	Profit/(Loss) for theperiod(IX-X)	23.04	32.91	139.12	311.67
XII	Other Comprehensive Income A (i) Items that will not be classified to profit or loss - Remeasurement of Employee Defined Benefit Plan (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	- - - - (0.02)	0.48 (0.12) - - 0.02	- - - - (0.04)	0.47 (0.12) - - (0.11)
XIII	Total Comprehensive Income for the period (XI+XII)	23.02	33.29	139.08	311.91
XIV XV XVI	Paid -Up Equity Share Capital ( Face Value ` 10/- per share) Other Equity (Excluding Revaluation Reserves) Earnings Per Share (₹) (For the quarter not annualised) - Basic (₹) - Diluted(₹)	38.60 5.97 5.97	38.60 8.53 8.53	38.60 36.05 36.05	38.60 4387.34 80.75 80.75

HEG Ltd © LNJ Bhilwara Group

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Financial Snapshot (Standalone)

in Rs. cr (except EPS)

PARTICULARS	FY 24-25	FY	FY	FY
	Q1	23-24	22-23	21-22
TOTAL INCOME	592	2537	2576	2281
EBITDA	59	526	729	607
EBIT	12	351	626	527
PAT	3	232	456	391
EPS	0.67	59.99	118.02	101.20
EBITDA Margin (%)	10%	21%	28%	27%
PAT Margin (%)	0.44%	9%	18%	17%

HEG Ltd © LNJ Bhilwara Group

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Quarterly Performance (Standalone)

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HEG Ltd © LNJ Bhilwara Group

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Investments and Borrowings (Standalone)

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• Investments including Cash & Cash equivalents and excluding investments in Associates & Wholly Owned Subsidiary

HEG Ltd © LNJ Bhilwara Group

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Thank You

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Mr.Manish Gulati : Executive Director Mr.Om Prakash Ajmera : Group CFO Mr.Gulshan Kr.Sakhuja : CFO Mr.Puneet Anand : CSO HEG Limited Ph: +91 9910103865 Fax: +91 120 254 1575 Email: Manish.gulati@lnjbhilwara.com Gulshan.sakhuja@lnjbhilwara.com

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HEG Ltd © LNJ Bhilwara Group

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