HEG Ltd's Q3FY19 standalone net profit rises 153% yoy to Rs867cr

The company’s standalone revenue stood at Rs1,865cr, up 121% yoy and 4% qoq

Feb 12, 2019 01:02 IST India Infoline Research Team

HEG Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 1,865 121
EBITDA 1,313 136
EBITDA Margin (%) 70.4 427
Net Profit (adjusted) 867 153
***EBITDA margin change is bps

HEG reported a sequential decline in earnings despite higher revenues due to increased raw material costs. Revenue grew by 121% yoy to Rs1,865cr (up 4% qoq). EBITDA stood at Rs1,313cr, up 136% yoy (down 4% qoq) with EBIDTA margins rising by 427bps yoy to 70.4%. Net Profit stood at Rs867cr, up 153% yoy (down 2.5% qoq).
  • Revenue rose by 4% qoq supported by higher volumes due to increased crude steel production in China.
  • EBITDA margins shrunk by 588bps qoq due to higher raw material costs as well as employee costs.
  • Gross margins fell by 634bps qoq as raw material costs rose by 58% qoq to Rs345cr.
  • Employee costs for Q3FY19 increased by 7.7% qoq to Rs56.6cr.
  • In the board meeting, the board re-appointed Ravi Jhunjhunwala as the MD of the company. The board also reappointed Manish Gulati and Gulshan Sakhuja as the COO/CMO and the CFO respectively. The Board has appointed Om Prakash Ajmera as the Group CFO of HEG Ltd.

Technical View:

HEG Ltd is currently trading at Rs. 2,162.40, down by 48.7 points or 2.2% from its previous closing of Rs. 2,211.10 on the BSE.
The scrip opened at Rs. 2,170 and has touched a high and low of Rs. 2,224.15 and Rs. 2,025 respectively. So far 8,53,379 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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