Three graphite electrodes glow red hot in an electric arc furnace. (Photographer: Andrey Rudakov/Bloomberg)

HEG Says On Track To Meet Growth Forecast

HEG Ltd. believes it is on track to meet its growth forecast.

The graphite electrode maker’s realisation will improve sequentially, Chairman and Managing Director Ravi Jhunjunwala told BloombergQuint in a post-earnings interaction.

“Ramping up of production will lead to growth in volumes.” The company also is looking for opportunities in carbon fields, Jhunjunwala said.

The use of highly-polluting needle coke led to a crackdown in China to curb winter pollution. A supply crunch pushed graphite electrode prices higher, helping companies like HEG. On demand side, things are driven by China’s environment concerns, Jhunjunwala said. “China’s closure of polluting steel plants changed the scenario.”

Key Q1 Earnings Highlights (YoY)

  • Revenue was up 7.7 times at Rs 1,587.4 crore.
  • Net profit stood at Rs 770.3 crore against a net loss of Rs 8.4 crore.
  • Earnings before interest, tax, depreciation and amortisation stood at Rs 1,188 crore compared with Rs 23.4 crore.
  • Margin came at 74.8 percent against 11.4 percent.

Shares of HEG extended gains for the fourth straight session. The stock rose as much as 5 percent to hit a new all-time high at Rs 4,559.80 apiece.