Q4 2024 HEG Ltd Earnings Call Transcript
Key Points
- HEG Ltd (BOM:509631) has successfully completed its expansion from 80,000 tons to 100,000 tons, making it the largest graphite electrode plant under one roof in the western world.
- The company has a diverse and established customer base, exporting more than two-thirds of its production to over 30 countries.
- HEG Ltd (BOM:509631) is debt-free with a treasury of approximately INR980 crores as of March 31, 2024.
- The company is well-positioned to benefit from the increasing demand for electric arc furnaces, driven by global decarbonization efforts.
- The planned demerger into HEG Graphite Limited and HEG Greentech Limited aims to unlock shareholder value and allow each business to focus on its core strengths.
- Electrode pricing remains under pressure, impacting overall revenue and profitability.
- The company's EBITDA and net profit have significantly decreased compared to the previous financial year.
- The needle coke prices have been volatile, affecting the margins due to the lag time between procurement and sales of finished electrodes.
- The steel industry, a key driver for HEG Ltd (BOM:509631)'s products, is experiencing a slowdown, which may continue to impact demand in the short term.
- The demerger process is expected to take around 15 to 18 months, requiring multiple approvals, which could delay the realization of its intended benefits.
Ladies and gentlemen, good day, and welcome to the HEG Limited Q4 FY24 and FY24 earnings conference call organized by SKP Securities Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Navin Agarwal, Head Institutional Equities at SKP Securities Limited. Thank you and over to you, sir.
Good afternoon, ladies and gentlemen. It's my pleasure to welcome you on behalf of HEG Limited and SKP Securities to this financial results conference call with the leadership team at HEG Limited. We have with us Mr. Ravi Jhunjhunwala, Chairman, Managing Director, and CEO; and Mr. Riju Jhunjhunwala, Vice Chairman; along with their colleagues, Mr. Manish Gulati, Executive Director; Mr. Om Prakash Ajmera, Group CFO; Mr. Gulshan Kumar Sakhuja, CFO; and Mr. Puneet Anand, CSO. We'll have the opening remarks from Mr. Jhunjhunwala, followed by a Q&A session. Thank you, and over to you, Ravi-ji.
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