HEG Ltd. - Investor Presentation 2025

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HEG/SECTT/2025

13[th] February, 2025

	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 & nine months period ended 31[st] December, 2024.

Dear Sirs,

Please find enclosed a copy of Investors Presentation on the Unaudited Financial Results of the Company for the quarter & nine months period ended 31[st] December, 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 Date: 2025.02.13 Chaudhary 19:36:44 +05'30'

Vivek Chaudhary Company Secretary A-13263 [email protected]

Encl: As above

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HEG LIMITED Investor Presentation

Performance Highlights Q3 of FY 2024-25

Gra hite Electrode GE p ( )

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A consumable for Electric Arc Furnaces (EAF) used in steel production
Functions as an electrical conductor in EAFs, generating the heat required to melt steel scrap
–
High-tech / High Entry Barrier HEG was the last new entrant in the Western world in 1976
EAF-produced steel emits one-fourth of the carbon compared to steel from traditional blast furnaces
According to the World Steel Association, EAF steel production (w/o China) rose from 44% to 50% between 2015 and 2023, while China’s EAF production remains around 11%

HEG Ltd © LNJ Bhilwara Group

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.
Beginning 2024 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 2024
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HEG Ltd © LNJ Bhilwara Group

Expanded plant at 100,000 tons – operational since Nov’23

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HEG Ltd © LNJ Bhilwara Group

TOP 10 Crude Steel - Producing Countries

Crude Steel Production (mmt)	Y-o-Y	Y-o-Y	Last 3 months Y-o-Y	Last 3 months Y-o-Y
Sr. No Country	2024 2023 Y-o-Y (%)		Oct-Dec'24 Oct-Dec'23 Q-o-Q (%)
1 China 2 India 3 Japan 4 United States 5 Russia 6 South Korea 7 Germany 8 Turkey 9 Brazil 10 Iran	1,005.1 1,022.5 -1.7% 149.6 140.8 6.3% 84.0 87.0 -3.4% 79.5 81.4 -2.4% 70.7 76.0 -7.0% 63.5 66.7 -4.7% 37.2 35.4 5.2% 36.9 33.7 9.4% 33.7 32.0 5.3% 31.0 30.7 0.8%		236.3 224.0 5.5% 38.8 36.5 6.2% 20.7 21.6 -4.1% 19.3 20.1 -3.8% 16.9 18.8 -10.5% 15.8 16.3 -2.6% 8.9 8.1 9.2% 9.0 9.2 -2.2% 8.4 7.9 6.6% 8.6 8.9 -3.2%
Total World	1,882.6 1,897.9	-0.8%	443.6 433.1	2.4%
World ex china	877.5 875.4 0.2%		207.3 209.1 -0.8%

Source: World Steel Association. Estimates are subject to revision in the next update. The table above represents 71 countries,

HEG Ltd © LNJ Bhilwara Group

WSA Steel Demand Forecast – To steel consumin countries p g

WSA Global Steel Demand Outlook: 0.9% Decline in 2024, Recovery Expected in 2025

Sr. No	Country	Million Tonnes	Million Tonnes	Million Tonnes	Y-o-Y Growth	Y-o-Y Growth	Y-o-Y Growth
		2023	2024(f)	2025(f)	2023	2024(f)	2025(f)
1	India	132.8	143.4	155.6	14.4%	8.0%	8.5%
2	United States	90.5	89.2	91.0	-4.2%	-1.5%	2.0%
3	South Korea	52.4	50.4	50.1	2.2%	-3.8%	-0.6%
4	Japan	53.3	52.2	53.1	-3.0%	-2.1%	1.7%
5	Russia	44.6	44.2	43.3	7.0%	-1.0%	-2.0%
6	Türkiye	38.1	36.0	35.5	17.2%	-5.5%	-1.4%
7	Mexico	29.0	29.3	29.5	16.2%	0.8%	0.6%
8	Germany	28.2	26.2	27.7	-13.5%	-7.0%	5.7%
9	Brazil	24.0	25.2	25.9	1.9%	5.0%	3.0%
10	Others w/o China	378.4	386.0	399.7	-2.9%	2.0%	3.5%
	World w/o China	871.3	882.1	911.4	2.0%	1.2%	3.3%

	China	895.7	868.8	860.1	-3.3%	-3.0%	-1.0%

	Total World	1,767.0	1,750.9	1,771.5	-0.8%	-0.9%	1.2%

HEG Ltd © LNJ Bhilwara Group

Industry Outlook

1. As per WSA, Global crude steel production in 2024 declined by 0.8% to 1,882.6 mmt, down from 1,897.9 mmt in 2023.

2. Excluding China, global steel production in 2024 was 877.5 mmt, remaining nearly unchanged from 875.4 mmt in 2023.

3. Steel production outside China continues to struggle with subdued demand and pricing pressures, as Chinese steel exports surged to 110.7 mmt in 2024, reaching a nine-year high and driving global prices lower.

4. India, the world’s second-largest steel producer, saw a 6.3% increase in production, reaching 149.6 mmt in 2024, driven by government-led infrastructure projects and strong demand from the automotive sector.

5. China’s shift to Electric Arc Furnace (EAF) steel production has stalled, resulting in an oversupply of Chinese electrodes and continued price declines.

6. Graphite electrode (GE) demand remained weak, with prices likely to remain under pressure for another 1–2 quarters.

7. The decarbonization push in the steel industry is expected to boost demand for graphite electrodes, as the adoption of EAF steelmaking expands globally. This transition is projected to create an additional demand of approximately 200,000 tons by 2030 (excluding China).

8. Despite short-term pressures, decarbonization is now an irreversible trend, and we remain optimistic about the long-term growth potential for graphite electrode demand.

HEG Ltd © LNJ Bhilwara Group

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Financial Results for the Quarter & 9 months ended 31st Dec 2024 - Standalone (Rs. cr)
Quarter Ended Nine Months Ended Year Ended
Sl. No. Particulars 31-12-2024 30-09-2024 31-12-2023 31-12-2024 31-12-2023 31-03-2024
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
I Revenue from operations 477.07 567.60 562.40 1,616.13 1,848.00 2,394.90
II Other income 113.23 42.95 23.22 176.62 77.36 141.67
III Total Income (I+II) 590.30 610.55 585.62 1,792.75 1,925.36 2,536.57
IV Expenses
Cost of materials consumed 228.94 251.10 245.40 711.20 858.21 1,093.00
Changes in inventories of finished goods and work-in-progress (50.66) (10.29) 34.17 (15.68) 0.56 58.39
Employee benefit expenses 23.43 22.63 22.77 69.79 69.61 94.80
Finance costs 9.38 9.34 9.73 27.19 27.11 35.74
Depreciation and amortisation expense 50.55 47.94 47.39 145.99 124.21 174.65
Power and fuel 79.10 89.85 73.58 253.30 236.63 310.08
Other expenses 115.88 117.50 99.75 381.54 342.40 454.67
Total expenses (IV) 456.62 528.07 532.79 1,573.33 1,658.73 2,221.33
V Profit/(loss) before exceptional items and tax (III-IV) 133.68 82.48 52.83 219.42 266.63 315.24
VI Exceptional items - - - -
VII Profit/(loss) before tax (V-VI) 133.68 82.48 52.83 219.42 266.63 315.24
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HEG Ltd © LNJ Bhilwara Group

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Financial Results for the Quarter & 9 months ended 31st Dec 2024 - Standalone (Rs. cr)
Quarter Ended Nine Months Ended Year Ended
Sl. No. Particulars 31-12-2024 30-09-2024 31-12-2023 31-12-2024 31-12-2023 31-03-2024
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
VII Profit/(loss) before tax (V-VI) 133.68 82.48 52.83 219.42 266.63 315.24
VIII Tax expense
(1) Current tax 10.85 9.12 11.31 27.54 59.52 74.58
(2) Deferred tax 24.51 11.27 4.44 28.89 10.73 9.12
IX Profit/(loss) for the period (VII-VIII) 98.32 62.09 37.08 162.99 196.38 231.54
X Other comprehensive income
A (i) Items that will not be classified to profit or loss
- Remeasurement of employee defined benefit plan - 0.90 - 0.90 (0.01) 0.47
(ii) Tax expense relating to items that will not be reclassified - (0.23) - (0.23) 0.00 (0.12)
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
XI Total other comprehensive income for the period (IX+X) 98.32 62.76 37.08 163.66 196.37 231.89
XII Paid -Up Equity Share Capital ( Face Value ₹ 2/- per share) 38.60 38.60 38.60 38.60 38.60 38.60
XIII Other equity (excluding revaluation reserves) 4,106.48
Earnings per share (₹) (not annualised except for the year
XIV
ended 31st March 2024)
- Basic (₹) 5.09 3.22 1.92 8.45 10.18 12.00
- Diluted (₹) 5.09 3.22 1.92 8.45 10.18 12.00
HEG Ltd © LNJ Bhilwara Group 10
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Financial Results for the Quarter & 9 months ended 31st Dec 2024 - Consolidated (Rs. cr)

Sl. No.	Particulars	Quarter Ended	Quarter Ended	Quarter Ended	Nine Months Ended	Nine Months Ended	Year Ended
		31-12-2024	30-09-2024	31-12-2023	31-12-2024	31-12-2023	31-03-2024
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
I II III IV V VI VII VIII IX	Revenue from operations	478.38	567.60	562.40	1,617.44	1,848.00	2,394.90
	Other income	111.58	42.95	23.22	174.97	77.36	141.67
	Total Income (I+II)	589.96	610.55	585.62	1,792.41	1,925.36	2,536.57
	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 Total expenses	228.94 (50.66) 24.78 9.38 50.56 79.10 116.36 458.46	251.10 (10.29) 22.82 9.34 47.94 89.85 117.51 528.27	245.40 34.17 22.85 9.73 47.39 73.58 99.76 532.88	711.20 (15.68) 71.42 27.19 146.00 253.30 382.04 1,575.47	858.21 0.56 70.00 27.11 124.21 236.63 342.95 1,659.67	1,093.00 58.39 95.27 35.74 174.65 310.08 455.73 2,222.86
	Profit/(loss) before exceptional items and tax (III-IV)	131.50	82.28	52.74	216.94	265.69	313.71
	Exceptional Items	-	-	-	-	-	-
	Profit/(loss) before tax & share of profit/(loss)of associate (V-VI)	131.50	82.28	52.74	216.94	265.69	313.71
	Share of profit/ (loss) of associate	(12.93)	20.39	6.68	28.03	83.32	81.66
	Profit/(Loss) before tax (VII+VIII)	118.57	102.67	59.42	244.97	349.01	395.37

Financial Results for the Quarter & 9 months ended 31st Dec 2024 - Consolidated (Rs. cr)

Sl. No.	Particulars	Quarter Ended	Quarter Ended	Quarter Ended	Nine Months Ended	Nine Months Ended	Year Ended
		31-12-2024	30-09-2024	31-12-2023	31-12-2024	31-12-2023	31-03-2024
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
IX	Profit/(Loss) before tax (VII+VIII)	118.57	102.67	59.42	244.97	349.01	395.37
X XI XII XIII XIV XV XVI	Tax expense (1) Current tax (2)Deferred tax	10.86 24.31	9.12 11.27	11.31 4.44	27.55 28.69	59.52 10.73	74.58 9.12
	Profit/(loss) for the period (IX-X)	83.40	82.28	43.67	188.73	278.76	311.67
	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 C Share of other comprehensive income of associate	- - - - (0.02)	0.90 (0.23) - - (0.03)	- - - - (0.07)	0.90 (0.23) - - (0.07)	(0.01) 0.00 - - (0.13)	0.47 (0.12) - - (0.11)
	Total comprehensive income for the period (XI+XII)	83.38	82.92	43.60	189.33	278.62	311.91
	Paid -up equity share capital (face value ₹ 2/- per share) Other equity (excluding revaluation reserves) Earnings per share (₹) (not annualised except for the year ended 31st March 2024) - Basic (₹) - Diluted(₹)	38.60 4.32 4.32	38.60 4.26 4.26	38.60 2.26 2.26	38.60 9.78 9.78	38.60 14.44 14.44	38.60 4,387.34 16.14 16.14
HEG Ltd © LNJ Bhilwara Group

Financial Snapshot (Standalone)

Rs. cr (except EPS)

PARTICULARS	FY 24-25	FY 24-25	FY 24-25	FY	FY	FY
	Q3	Q2	Q1	23-24	22-23	21-22
TOTAL INCOME	590	611	592	2537	2576	2281
EBITDA	194	140	59	526	729	607
EBIT	143	92	12	351	626	527
PAT	98	62	3	232	456	391
EPS	5.09	3.22	0.13	12.00	23.60	20.24
EBITDA Margin (%)	33%	23%	10%	21%	28%	27%
PAT Margin (%)	17%	10%	0.44%	9%	18%	17%

Quarterly Performance (Standalone)

Revenue from Operations (Rs. in crs.)

EBITDA (Rs. in crs.)

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671
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194
614
178
562 547 571 568
477 140
130
110 108
59
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY24 FY25 FY24 FY25
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Investments and Borrowings (Standalone)

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Investments (Rs. in crs.) Short Term Working Capital Borrowings Outstanding
as at the end of the Quarter
1013 (Rs. in crs.)
684
998
984 982 598 592 619 599
561
494
949
923
917
30th Jun23 30th Sep23 31st Dec23 31st Mar24 30th Jun24 30th Sep24 31st Dec24 30th Jun23 30th Sep23 31st Dec23 31st Mar24 30th Jun24 30th Sep24 31st Dec24
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Investments including Cash & Cash equivalents and excluding investments in Associates & Wholly Owned Subsidiary

Thank You

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Mr. Manish Gulati : Executive Director Mr. Om Prakash Ajmera : Group CFO Mr. Ravi Kant Tripathi : CFO Mr. Puneet Anand : CSO

HEG Limited Ph: +91 9981190052 Fax: +91 120 254 1575 Email: [email protected] [email protected]

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AI assistant

HEG Ltd. Investor Presentation 2025

61624_rns_2025-02-13_453927c8-d9f3-4090-926b-cfc096ca8b70.pdf

Sub: Investors presentation on the Unaudited Financial Results of the Company for the quarter & nine months period ended 31[st] December, 2024.

HEG LIMITED Investor Presentation

Gra hite Electrode GE p ( )

HEG Limited – Unique Strengths

TOP 10 Crude Steel - Producing Countries

WSA Steel Demand Forecast – To steel consumin countries p g

WSA Global Steel Demand Outlook: 0.9% Decline in 2024, Recovery Expected in 2025

Industry Outlook

Financial Results for the Quarter & 9 months ended 31st Dec 2024 - Consolidated (Rs. cr)

Financial Results for the Quarter & 9 months ended 31st Dec 2024 - Consolidated (Rs. cr)

Financial Snapshot (Standalone)

Quarterly Performance (Standalone)

Revenue from Operations (Rs. in crs.)

EBITDA (Rs. in crs.)

Investments and Borrowings (Standalone)

Thank You

AI assistant

HEG Ltd. — Investor Presentation 2025

61624_rns_2025-02-13_453927c8-d9f3-4090-926b-cfc096ca8b70.pdf

Sub: Investors presentation on the Unaudited Financial Results of the Company for the quarter & nine months period ended 31[st] December, 2024.

HEG LIMITED Investor Presentation

Gra hite Electrode GE p ( )

HEG Limited – Unique Strengths

TOP 10 Crude Steel - Producing Countries

WSA Steel Demand Forecast – To steel consumin countries p g

WSA Global Steel Demand Outlook: 0.9% Decline in 2024, Recovery Expected in 2025

Industry Outlook

Financial Results for the Quarter & 9 months ended 31st Dec 2024 - Consolidated (Rs. cr)

Financial Results for the Quarter & 9 months ended 31st Dec 2024 - Consolidated (Rs. cr)

Financial Snapshot (Standalone)

Quarterly Performance (Standalone)

Revenue from Operations (Rs. in crs.)

EBITDA (Rs. in crs.)

Investments and Borrowings (Standalone)

Thank You

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