HEG Limited — PPTs, 23-05-2025: Investor Presentation

1. Financial Highlights:

HEG reported standalone revenue of ₹2,152.7 Cr with profit before tax at ₹147.8 Cr, down from ₹315.2 Cr last year. EBITDA margin contracted to 17% from 21% due to cost pressures despite stable volumes. Standalone net profit fell sharply to ₹101.3 Cr from ₹231.5 Cr. Consolidated revenue was ₹2,159.7 Cr with PBT of ₹160.4 Cr and net profit of ₹115 Cr. Quarterly performance weakened, with standalone revenue at ₹536.6 Cr and a loss before tax of ₹71.6 Cr. Working capital borrowings reduced to ₹875 Cr, while investments including cash stood at ₹585 Cr.

2. Strategic Initiatives & Growth Drivers:

HEG expanded graphite electrode capacity to 100,000 tons per annum, becoming the third largest in the Western world. The company targets growth from the global shift toward electric arc furnace (EAF) steelmaking amid decarbonization trends. Exports contribute 65-70% of production, servicing a diverse base of top global steelmakers. Captive power capacity of ~80 MW supports cost efficiency and stability.

3. Business Developments:

No new acquisitions or partnerships. Focus remains on capacity expansion and optimizing export markets. Supplies continue to exceed 35 countries, benefiting from sustained global demand for graphite electrodes linked to EAF steel growth.

4. Market Position & Competitive Advantage:

HEG operates the world’s largest single-site graphite electrode plant and is a leading Western producer with strong entry barriers. Capacity expansion enhances scale advantage, while captive power and diversified global customers provide resilience amid market volatility.

5. Investor Implications:

Near-term margin pressures reflect weak global steel demand, tempering outlook. Medium to long-term prospects are positive due to structural shift to EAF steelmaking and decarbonization driving electrode demand. Execution on capacity utilization and cost control, plus steel market trends, remain key monitorables for investors.