HEG Ltd has posted results for the quarter ended 31st December, 2011.
FINANCIAL HIGHLIGHTS:
Net Sales in Q3FY2012 enhance by 35% at Rs418.0 crore as compared to Rs310.3 crore in Q3FY2011
EBIDTA in Q3 FY2012 increases by 38% at Rs91.1 crore from Rs66.2 crore
EBIT in Q3 FY2012 higher by 47% at Rs76.5 crore from Rs52.0 crore
EBT (before exceptional items) in Q3FY2012 rises by 50% at Rs62.8 crore from Rs42.0 crore
PAT in Q3 FY2012 at Rs24.0 crore from Rs38.2 crore
EPS (Basic) in Q3 FY2012 at Rs5.89 from Rs8.92 in Q3 FY2011
Exceptional items represents FX realization losses of Rs.35.5 crore on account of Hedges
and Foreign currency borrowings; trend to be determined by FX fluctuations
OPERATIONAL HIGHLIGHTS:
Growth and solid operational performance in Q3 FY2012 attributed towards:
Optimized product mix leading to record capacity utilization over 100%
High capacity utilization rates expected to sustain
Expected growth in steel demand to support graphite electrode production
Exports witnessed significant growth momentum
Improved Graphite Electrode pricing to drive increase in margins
Accelerated power division
Ravi Jhunjhunwala, Chairman and Managing Director, HEG Limited, said:“I am pleased to share with you that we have successfully achieved our graphite electrode capacity expansion to 80,000 tons, making us the world’s largest single-site manufacturing facility. We expect to commercialize the same shortly.
We have invested substantially in furthering our production capabilities to these levels, with an aim to increasing and optimizing our capacities, producing world-class products and satisfying the rapidly growing demand for graphite electrodes.
In recent times, steel production through the EAF route has been on the rise, placing us in a favourable situation to use our core competitiveness to achieve further success.HEG continues to remain fully committed to the graphite electrodes industry in the long run and we remain optimistic about its future.”
Commenting on the results, Manvinder Singh Ajmani, Chief Financial Officer, HEG Limited, said:“The quarter under review displays a positive operating performance in both, the graphite electrodes and power divisions. Graphite electrodes volumes, pricing and realizations continue to display improvement. HEG has secured needle coke requirements for the current year at reasonable prices, besides having healthy inventory at old prices which are expected to reflect positively in future earnings performance.We have a successful business model, the right strategy and sufficient manufacturing resources thereby providing a strong base towards sustaining our position as a leading provider of graphite electrodes. I would like to add however that our performance could be moderately tempered by the macro economic situation globally.”