HEG Ltd. — Investor Presentation 2025

May 23, 2025

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HEG/SECTT/2025

23[rd] May, 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 Audited Financial Results of the Company for the quarter & year ended 31[st] March, 2025.

Dear Sirs,

Please find enclosed a copy of Investors Presentation on the Audited Financial Results of the Company for the quarter & year ended 31[st] March, 2025 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: 2025.05.23 16:23:37 +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 Q4 of FY 2024-25

Gra hite Electrode GE p ( )

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1. A consumable for Electric Arc Furnaces (EAF) used in steel production

2. Functions as an electrical conductor in EAFs, generating the heat required to melt steel scrap

3. High-tech / High Entry Barrier – HEG was the last new entrant in the Western world in 1976

4. EAF-produced steel emits one-fourth of the carbon compared to steel from traditional blast furnaces 5. 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

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HEG Limited – Unique Strengths

1. 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.

2. Since Nov’23, capacity expanded to 100,000 tons to become the third largest producer of Graphite

• electrodes in the western world.

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

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

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

6. 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

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

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HEG Ltd © LNJ Bhilwara Group

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TOP 10 Crude Steel - Producing Countries

Crude Steel Production (mmt)	Y-o-Y	Y-o-Y		Q-o-Q	Q-o-Q
Sr. No Country	Jan-Mar'24 Jan-Mar'25 Y-o-Y (%)			Oct-Dec'24 Jan-Mar'25 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	257.1 259.1 0.8% 37.6 40.1 6.8% 21.5 20.4 -4.9% 19.8 19.7 -0.6% 18.4 17.7 -3.8% 16.1 15.5 -3.6% 9.7 8.5 -12.6% 9.6 9.3 -3.4% 8.2 8.5 2.8% 8.4 7.3 -12.8%			236.3 259.1 9.7% 38.6 40.1 3.9% 20.7 20.4 -1.6% 19.3 19.7 2.0% 17.2 17.7 3.3% 15.9 15.5 -2.5% 8.9 8.5 -4.4% 9.0 9.3 3.0% 8.4 8.5 0.6% 8.6 7.3 -15.4%
Total World	469.7 468.4	-0.3%		443.2 468.4 5.7%
World ex china	212.5 209.3	-1.5%		207.0 209.3	1.1%

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. As per WSA, global crude steel production in Q1 2025 declined slightly by 0.3% to 468.4 mmt, compared to 469.7 mmt in Q1 2024 .

2. Global steel production excluding China, stood at 209.3 mmt, down 1.5 % from 212.5 mmt in the same period last year.

3. Steel production outside China continues to face headwinds from weak demand and pricing pressures , while Chinese steel production rose 0.8% Y-o-Y to 259.1 mmt , supporting increased exports and weighing on global prices.

4. India, the world’s second-largest steel producer, reported a 6.8% Y-o-Y increase in production, reaching 40.1 mmt in Q1 2025 driven by infrastructure expansion and robust demand from the automotive industry.

5. Meanwhile, many major producers like Germany (-12.6%), Iran (-12.8%), Japan (-4.9%), South Korea (-3.6%), Russia (-3.8%), and Turkey (-3.4%) witnessed notable declines , reflecting broader challenges in global steel demand, regional market dynamics, and economic uncertainty.

6. China’s increasing steel exports have intensified competition in international markets, pressuring global prices and amplifying challenges for producers in other regions struggling with tepid domestic demand.

1. Graphite electrode (GE) demand remained weak, with prices under pressure.

8. The decarbonization push in the steel industry is expected to boost demand for GE , 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).

9. 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 & year ended 31st Mar 2025 – Standalone (Rs. cr)
Quarter Ended Year Ended
Sl. No. Particulars 31-03-2025 31-12-2024 31-03-2024 31-03-2025 31-03-2024
Audited Unaudited Audited Audited Audited
I Revenue from operations 536.58 477.07 546.90 2,152.71 2,394.90
II Other income 43.63 113.23 64.31 126.68 141.67
III Total Income (I+II) 580.21 590.30 611.21 2,279.39 2,536.57
IV Expenses
Cost of materials consumed 243.53 228.94 234.78 954.73 1,093.00
Changes in inventories of finished goods and work-in-progress (35.29) (50.66) 57.83 (50.97) 58.39
Employee benefit expenses 27.39 23.43 25.19 97.18 94.80
Finance costs 12.01 9.38 8.63 39.20 35.74
Depreciation and amortisation expense 54.55 50.55 50.44 200.54 174.65
Power and fuel 78.35 79.10 73.46 331.65 310.08
Other expenses 271.27 115.88 112.27 559.24 454.67
Total expenses (IV) 651.81 456.62 562.60 2,131.57 2,221.33
V Profit/(loss) before exceptional items and tax (III-IV) (71.60) 133.68 48.61 147.82 315.24
VI Exceptional items - - - - -
VII Profit/(loss) before tax (V-VI) (71.60) 133.68 48.61 147.82 315.24
HEG Ltd © LNJ Bhilwara Group 8
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Financial Results for the Quarter & year ended 31st Mar 2025 - Standalone (Rs. cr)
Quarter Ended Year Ended
Sl. No. Particulars 31-03-2025 31-12-2024 31-03-2024 31-03-2025 31-03-2024
Audited Unaudited Audited Audited Audited
VII Profit/(loss) before tax (V-VI) (71.60) 133.68 48.61 147.82 315.24
VIII Tax expense
(1) Current tax (net of adjustment of earlier year tax) 20.88 10.85 15.07 48.42 74.58
(2) Deferred tax (30.80) 24.51 (1.61) (1.91) 9.12
IX Profit/(loss) for the period / year (VII-VIII) (61.68) 98.32 35.15 101.31 231.54
X Other comprehensive income
A (i) Items that will not be classified to profit or loss
- Remeasurement of employee defined benefit plan (0.94) - 0.48 (0.04) 0.47
(ii) Tax expense relating to items that will not be reclassified 0.24 - (0.12) 0.01 (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/ year (IX+X) (62.38) 98.32 35.52 101.28 231.89
XII Paid -Up Equity Share Capital ( Face Value ₹ 2/- per share) 38.60 38.60 38.60 38.60 38.60
XIII Other equity (excluding revaluation reserves) 4,120.93 4,106.48
XIV Earnings per share (₹) (not annualised for the quarter)
- Basic (₹) (3.20) 5.09 1.82 5.25 12.00
- Diluted (₹) (3.20) 5.09 1.82 5.25 12.00
HEG Ltd © LNJ Bhilwara Group 9
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Financial Results for the Quarter & year ended 31st Mar 2025 - Consolidated (Rs. cr)
Quarter Ended Year Ended
Sl. No. Particulars 31-03-2025 31-12-2024 31-03-2024 31-03-2025 31-03-2024
Audited Unaudited Audited Audited Audited
I Revenue from operations 542.25 478.38 546.90 2,159.69 2,394.90
II Other income 48.02 111.58 64.31 127.57 141.67
III Total Income (I+II) 590.27 589.96 611.21 2,287.26 2536.57
IV Expenses
Cost of materials consumed 243.53 228.94 234.78 954.73 1,093.00
Changes in inventories of finished goods and work-in- progress (35.29) (50.66) 57.83 (50.97) 58.39
Employee benefits expense 32.25 24.78 25.26 103.67 95.27
Finance cost 12.01 9.38 8.63 39.20 35.74
Depreciation and amortisation expense 54.59 50.56 50.44 200.59 174.65
Power and fuel 78.37 79.10 73.46 331.67 310.08
Other expenses 278.86 116.36 112.78 565.48 455.73
Total expenses 664.32 458.46 563.18 2,144.37 2222.86
V Profit/(loss) before exceptional items and tax (III-IV) (74.05) 131.50 48.03 142.89 313.71
VI Exceptional Items - - - - -
VII Profit/(loss) before tax & share of profit/(loss)of associate (V-VI) (74.05) 131.50 48.03 142.89 313.71
VIII Share of profit/ (loss) of associate (10.55) (12.93) (1.66) 17.48 81.66
IX Profit/(Loss) before tax (VII+VIII) (84.60) 118.57 46.37 160.37 395.37
HEG Ltd © LNJ Bhilwara Group 10
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Financial Results for the Quarter & year ended 31st Mar 2025 - Consolidated (Rs. cr)
Quarter Ended Year Ended
Sl. No. Particulars 31-03-2025 31-12-2024 31-03-2024 31-03-2025 31-03-2024
Audited Unaudited Audited Audited Audited
IX Profit/(Loss) before tax (VII+VIII) (84.60) 118.57 46.37 160.37 395.37
X Tax expense
(1) Current tax (net of adjustment of earlier year tax) 20.71 10.86 15.07 48.26 74.58
(2) Deferred tax (31.64) 24.31 (1.61) (2.95) 9.12
XI Profit/(loss) for the period (IX-X) (73.67) 83.40 32.91 115.06 311.67
XII Other comprehensive income
A (i) Items that will not be classified to profit or loss
- Remeasurement of employee defined benefit plan (0.95) - 0.48 (0.05) 0.47
(ii) Tax expense relating to items that will not be reclassified 0.24 - (0.12) 0.01 (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
C Share of other comprehensive income of associate (0.28) (0.02) 0.02 (0.35) (0.11)
XIII Total comprehensive income for the period (XI+XII) (74.66) 83.38 33.29 114.67 311.91
XIV Paid -up equity share capital (face value ₹ 2/- per share) 38.60 38.60 38.60 38.60 38.60
XV Other equity (excluding revaluation reserves) 4415.16 4387.34
XVI Earnings per share (₹) (not annualised for the quarter)
- Basic (₹) (3.82) 4.32 1.71 5.96 16.15
- Diluted (₹) (3.82) 4.32 1.71 5.96 16.15
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HEG Ltd © LNJ Bhilwara Group 11

Financial Snapshot (Standalone)

Rs. in cr (except EPS)

PARTICULARS	FY	FY	FY	FY
	24-25	23-24	22-23	21-22
TOTAL INCOME	2279	2537	2576	2281
EBITDA	388	526	729	607
EBIT	187	351	626	527
PAT	101	232	456	391
EPS	5.25	12.00	23.60	20.24
EBITDA Margin (%)	17%	21%	28%	27%
PAT Margin (%)	4%	9%	18%	17%

HEG Ltd © LNJ Bhilwara Group

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Quarterly Performance (Standalone)

Revenue from Operations (Rs. in cr)

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Revenue from Operations (Rs. in cr) EBITDA (Rs. in cr)
671
614 194
562 547 571 568 537 178
477
140
130
110 108
59
-5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY24 FY25 FY24 FY25
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HEG Ltd © LNJ Bhilwara Group

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Investments and Borrowings (Standalone)

Short Term Working Capital Borrowings Outstanding as at the end of the Quarter (Rs. in cr)

Investments* (Rs. in cr)

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1013
998 684
984 982 598 592 619 599 561 585
949
494
917 923
875
30th 30th 31st 31st 30th 30th 31st 31st 30th 30th 31st 31st 30th 30th 31st 31st
Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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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. Ravi Kant Tripathi : CFO Mr. Puneet Anand : CSO

HEG Limited Ph: +91 9981190052 Fax: +91 120 254 1575 Email: Manish.gulati@lnjbhilwara.com rk.tripathi@lnjbhilwara.com

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HEG Ltd © LNJ Bhilwara Group

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