core values

9M PAT at Rs. 110 crore, substantially up by 151% – crosses Rs. 100 crore mark in nine-month period
9M PAT at Rs. 110 crore, substantially up by 151% – crosses Rs. 100 crore mark in nine-month period
9M PBT at Rs. 160 crore, substantially up by 176%
Q3 PBT of Rs. 58 crore touches 9MFY2007 PBT of Rs. 58 crore
HEG’s Q3 EBIDTA margins healthy at 32%
• Growth led by graphite division
• Q3 FY2008 graphite earnings surge 207% to Rs. 55 crore
• Q3FY2008 graphite PBIT margins at 24.1% v/s 13.2%

HEG confident of continued buoyancy in graphite electrodes demand
Robust performance expected to continue on the back of:

• Growth in volumes and in realizations per tonne
• Improved operating efficiencies
• Buoyancy in demand in export markets to continue

Commenting on these results, Mr. Ravi Jhunjhunwala, Chairman and Managing Director, HEG Limited, said: “I am happy to announce another robust performance for the quarter, on the back of higher realizations in our graphite electrodes business. We have got full benefits from our power plants, leading to healthy growth performance in our power division. Our stabilized capacities have led to scaling up of our business, where we have the advantage of becoming a leading manufacturer in the graphite electrodes space. The strong demand scenario will continue in the graphite electrodes division, driven by higher volumes and improved product prices.”

Commenting on these results, Mr. R.C. Surana, Executive Director and CEO, HEG Limited, said

“We are committed to enhance scalability in our operations in our graphite electrodes segment by way of capacity utilization and new capacity expansion initiatives. HEG has secured the full years needle coke requirement at reasonable prices, which would reflect in our earnings performance going forward.” HEG Limited Q3/9M FY2008 results release 1

Q3 FY2008 review

Total Income increased by 36.9% to Rs. 261.3 crore as compared to Rs. 190.8 crore. Exports increased by a robust 79.3% to Rs. 187.6 crore from Rs. 104.6 crore, while domestic sales stood at Rs. 115.5 crore. Segmental revenues in Graphite stood at Rs. 229.9 crore as compared to Rs. 137.1 crore, growing by 67.7%. Revenues from the power segment contributed Rs. 35.1 crore, implying a growth of 5.7%.

EBIDTA increased by 97.5% at Rs. 83.2 crore, with margins expanding to 32.03% from 22.40%. Operating Profit increased on the back of improved realizations in the graphite electrodes segment and efficient production combined with access to economical power. Earnings in the Graphite electrodes segment tripled to Rs. 55.4 crore as compared to Rs. 18.1 crore in Q3 FY2007, while earnings in power segment increased to Rs. 14.8 crore up by 8.9%. PBT increased by 164.6% to Rs. 58.2 crore from Rs 22 crore last year. The Company registered an increase of 141% in Net Profits to Rs. 39.8 crore, translating into a basic EPS (non-annualised) of Rs 9.55.

9M FY2008 review

HEG’s Total Income increased by 36% to Rs. 793.0 crore on the back of sustained growth performance in the graphite electrode segment and stabilization of expanded capacities. Graphite electrodes segment contributed Rs. 671.7 crore toward revenues, implying a growth of 54.1% over 9M FY2007. The Company’s power segment revenues stood at Rs. 93.3 crore, increased by 3.2%.

EBIDTA for 9M FY2008 increased by 85.4% to Rs. 237.2 crore as compared to Rs. 127.9 crore, resulting in healthy growth in margins at 31.03% as compared to 22.30%. PBIT in graphite segment stood at Rs. 162.4 crore as compared to Rs. 61.8 crore in 9M FY2007. This was a result of healthy contribution from the expanded capacities coupled with improved realizations in the graphite electrodes segment. PBT for 9M FY2008 stood at Rs. 160.4 crore as against Rs. 58.2 crore in the corresponding period last year. PAT substantially improved by 150.9% to Rs. 110.4 crore from Rs. 44 crore, translating to a basic EPS (not annualized) of Rs. 27.07.