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HEG Ltd. Investor Presentation 2024

May 28, 2024

61624_rns_2024-05-28_966f37cc-c58e-47cb-b0ca-f37bbbe3599f.pdf

Investor Presentation

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28[th] May, 2024

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HEG/SECTT/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 Audited Financial Results of the Company for the quarter & year ended 31[st] March, 2024.

Dear Sir/Madam,

Please find enclosed a copy of Investors Presentation on the Audited Financial Results of the Company for the quarter & year ended 31[st ] March, 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

Vivek Digitally signed by Vivek Chaudhary Chaudhary Date: 2024.05.28 23:22:31 +05'30' (Vivek Chaudhary) Company Secretary M.No. A-13263

[email protected]

Encl. as above

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HEG LIMITED Investor Presentation

Performance Highlights Q4 & FY 2023-24

Gra hite Electrode GE p ( )

  • 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 – Uni ue Stren ths q g

  • 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
120
100
100
80
80
66
60
52
40
30
20 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

HEG Ltd © LNJ Bhilwara Group

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TOP 10 Crude Steel - Producin Countries g

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Y-o-Y Comparision Q-o-Q Comparision
Sr. No Country Jan-Mar'23 Jan-Mar'24 Y-o-Y Oct-Dec'23 Jan-Mar'24 Q-o-Q
1 China 257.2 256.2 -0.4% 222.6 256.2 15.1%
2 India 34.0 37.3 9.7% 36.4 37.3 2.4%
3 Japan 21.6 21.5 -0.8% 21.6 21.5 -0.7%
4 United States 20.3 19.9 -1.6% 20.1 19.9 -0.8%
5 Russia 18.7 18.7 -0.2% 18.8 18.7 -0.9%
6 South Korea 16.7 16.2 -2.5% 16.3 16.2 -0.1%
7 Germany 9.2 9.7 6.0% 8.2 9.7 18.2%
8 Turkey 7.4 9.5 28.4% 9.2 9.5 3.7%
9 Brazil 7.8 8.3 6.2% 7.9 8.3 5.4%
10 Iran 6.5 7.6 16.3% 9.1 7.6 -16.0%
Source WSA [World] 462.5 468.7 1.3% 431.8 468.7 8.6%
World ex China 205.3 212.5 3.5% 209.2 212.5 1.6%
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HEG Ltd © LNJ Bhilwara Group

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WSA Steel Demand Forecast – To steel consumin countries p g

WSA projects a healthy, 3.5% y-o-y growth in steel demand, excluding China, for 2024 and 2025

million tonnes y-o-y growth rates %
S.No Country 2023
2024 (f)
2025 (f)		 2023
2024 (f)
2025 (f)
1
India
2
United States
3
South Korea
4
Japan
5
Russia
6
Türkiye
7
Mexico
8
Germany
9
Brazil
10
Others w/o China		 133.4
144.3
156.0		 14.8%
8.2%
8.2%
-4.2%
1.8%
2.0%
6.7%
-0.8%
2.0%
-3.0%
-0.1%
1.1%
7.0%
4.0%
0.0%
17.2%
9.0%
-5.0%
14.0%
1.2%
1.6%
-13.7%
3.2%
10.0%
1.5%
1.0%
1.6%
1.1%
3.0%
3.9%
90.5
92.2
94.0
54.7
54.3
54.4
53.3
53.3
53.9
44.6
46.4
46.4
38.1
41.5
39.4
28.5
28.8
29.3
28.0
28.9
31.8
23.9
24.1
24.5
372.3
383.6
398.7
World w/o China 867.3
897.4
928.4		 1.3%
3.5%
3.5%
China 895.7
895.7
886.7		 -3.3%
0.0%
-1.0%
World 1763.0
1793.1
1815.1		 -1.1%
1.7%
1.2%

HEG Ltd © LNJ Bhilwara Group

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EAF Steel Forecast Trend – BCG / SMS Grou Net Zero Carbon Emissions in million mt p ( )

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Total +502 mmt
EAF w/o China 1,400 additional expected
UHP GE demand
EAF China
~ 605,000 tons
At +316 mmt
additional expected
936
UHP GE demand
820
~ 380,000 tons
At +186 mmt
531 additional expected
UHP GE demand 620
~ 225,000 tons
434
464
Source: BCG Report &
SMS Group Report, HEG’s 200
Estimate 97
2022 WSA 2030 BCG 2050 SMS
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HEG Ltd © LNJ Bhilwara Group

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Financial Results for the Quarter & Year ended 31 [st] Mar 2024 - Standalone (in Rs. cr)
Quarter Ended Year Ended
Sl. No. Particulars 31-03-2024 31-12-2023 31-03-2023 31-03-2024 31-03-2023
Audited Unaudited Audited Audited Audited
I Revenue from Operations 546.90 562.40 616.88 2,394.90 2,467.24
II Other Income (refer note 4) 64.31 23.22 31.35 141.67 109.14
III Total Income (I+II) 611.21 585.62 648.23 2,536.57 2576.38
IV Expenses
Cost of materials consumed 234.78 245.40 316.37 1,093.00 1,312.64
Changes in inventories of finished goods and work-in- progress 57.83 34.17 (48.16) 58.39 (397.49)
Employee benefits expense 25.19 22.77 24.50 94.80 91.83
Finance cost 8.63 9.73 7.33 35.74 26.01
Depreciation and amortisation expense 50.44 47.39 33.14 174.65 102.30
Power and Fuel 73.46 73.58 73.79 310.08 315.90
Other Expenses 112.27 99.75 126.60 454.67 524.71
Total expenses 562.60 532.79 533.57 2,221.33 1975.90
V Profit/(Loss) before exceptional items and tax (III-IV) 48.61 52.83 114.66 315.24 600.48
VI Exceptional Items - - - - -
VII Profit/(Loss) before Tax (V-VI) 48.61 52.83 114.66 315.24 600.48
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HEG Ltd © LNJ Bhilwara Group

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Financial Results for the Quarter & Year ended 31 [st] Mar 2024 - Standalone (in Rs. cr)
Quarter Ended Year Ended
Sl. No. Particulars 31-03-2024 31-12-2023 31-03-2023 31-03-2024 31-03-2023
Audited Unaudited Audited Audited Audited
VII Profit/(Loss) before Tax (V-VI) 48.61 52.83 114.66 315.24 600.48
VIII Tax expense
(1) Current Tax 15.07 11.31 28.21 74.58 154.25
(2) Deferred Tax (1.61) 4.44 (2.78) 9.12 (9.29)
IX Profit/(Loss) for the period (VII-VIII) 35.15 37.08 89.23 231.54 455.51
X Other Comprehensive Income
A (i) Items that will not be classified to profit or loss
- Remeasurement of Employee Defined Benefit Plan 0.48 - (0.47) 0.47 (0.83)
(ii) Income tax relating to items that will not be reclassified (0.12) - 0.12 (0.12) 0.21
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 - - - - -
XI Total Comprehensive Income for the period (IX+X) 35.52 37.08 88.88 231.89 454.89
XII Paid -Up Equity Share Capital ( Face Value Rs.10/- per share) 38.60 38.60 38.60 38.60 38.60
XIII Other Equity (Excluding Revaluation Reserves) 4106.48 4038.63
XIV Earnings Per Share (Rs.) (For the quarter not annualised)
- Basic (Rs.) 9.11 9.61 23.12 59.99 118.02
- Diluted (Rs.) 9.11 9.61 23.12 59.99 118.02
HEG Ltd © LNJ Bhilwara Group 10
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Financial Results for the Quarter & Year ended 31st Mar 2024- Consolidated (in Rs. cr)
Quarter Ended Year Ended
Sl. No. Particulars 31-03-2024 31-12-2023 31-03-2023 31-03-2024 31-03-2023
Audited Unaudited Audited Audited Audited
I Revenue from Operations 546.90 562.40 616.88 2,394.90 2,467.24
II Other Income (refer note 5) 64.31 23.22 31.35 141.67 109.14
III Total Income (I+II) 611.21 585.62 648.23 2,536.57 2576.38
IV Expenses
Cost of materials consumed 234.78 245.40 316.37 1,093.00 1,312.64
Changes in inventories of finished goods and work-in- progress 57.83 34.17 (48.16) 58.39 (397.49)
Employee benefits expense 25.26 22.85 24.72 95.27 92.05
Finance cost 8.63 9.73 7.33 35.74 26.01
Depreciation and amortisation expense 50.44 47.39 33.14 174.65 102.30
Power and Fuel 73.46 73.58 73.79 310.08 315.90
Other Expenses 112.78 99.76 126.70 455.73 525.75
Total expenses 563.18 532.88 533.90 2,222.86 1977.16
V Profit/(Loss) before exceptional items and tax (III-IV) 48.03 52.74 114.33 313.71 599.22
VI Exceptional Items - - - - -
Profit/(Loss) before Tax & Share of Profit/(Loss) of
VII 48.03 52.74 114.33 313.71 599.22
-
Associates (V VI)
VIII Share of Profit/ (Loss) of Associates (1.66) 6.68 10.83 81.66 78.15
IX Profit/(Loss) before Tax (VII+VIII) 46.37 59.42 125.17 395.37 677.37
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HEG Ltd © LNJ Bhilwara Group

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Financial Results for the Quarter & Year ended 31st Mar 2024- Consolidated (in Rs. cr)
Quarter Ended Year Ended
Sl. No. Particulars 31-03-2024 31-12-2023 31-03-2023 31-03-2024 31-03-2023
Audited Unaudited Audited Audited Audited
IX Profit/(Loss) before Tax (VII+VIII) 46.37 59.42 125.17 395.37 677.37
X Tax expense
(1) Current Tax 15.07 11.31 28.22 74.58 154.25
(2) Deferred Tax (1.61) 4.44 (2.78) 9.12 (9.29)
XI Profit/(Loss) for the period (IX-X) 32.91 43.67 99.72 311.67 532.40
XII Other Comprehensive Income
A (i) Items that will not be classified to profit or loss
- Remeasurement of Employee Defined Benefit Plan 0.48 - (0.47) 0.47 (0.83)
(ii) Income tax relating to items that will not be reclassified (0.12) - 0.12 (0.12) 0.21
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 (0.07) (0.14) (0.11) (0.13)
XIII Total Comprehensive Income for the period (XI+XII) 33.29 43.60 99.23 311.91 531.65
XIV Paid -Up Equity Share Capital ( Face Value Rs.10/- per share) 38.60 38.60 38.60 38.60 38.60
XV Other Equity (Excluding Revaluation Reserves) 4387.34 4242.34
XVI Earnings Per Share (Rs.) (For the quarter not annualised)
- Basic (Rs.) 8.53 11.32 25.84 80.75 137.95
- Diluted (Rs.) 8.53 11.32 25.84 80.75 137.95
HEG Ltd © LNJ Bhilwara Group 12
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Financial Snapshot (Standalone)

in Rs. cr (except EPS)

PARTICULARS FY FY FY FY
23-24 22-23 21-22 20-21
TOTAL INCOME 2537 2576 2281 1369
EBITDA 526 729 607 54
EBIT 351 626 527 (19)
PAT 232 456 391 (25)
EPS 59.99 118.02 101.20 (6.56)
EBITDA Margin (%) 21% 28% 27% 4%
PAT Margin (%) 9% 18% 17% (2%)

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: [email protected] [email protected]

HEG Ltd © LNJ Bhilwara Group

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