• Total income from operations in FY2013 rises by 14% at ` 1,622.6 crore as
compared to ` 1,424.6 crore in FY2012
• EBIDTA (before exceptional items) in FY2013 increases by 19% at ` 306.7
crore from ` 258.6 crore in FY2012
• EBIT (before exceptional items) in FY2013 higher by 22% at ` 244.1 crore
from ` 200.7 crore in FY2012
• EBT (before exceptional items) in FY2013 increases by 13% at ` 180.5 crore
from ` 160.0 crore in FY2012
• PAT in FY2013 rises by 70% at ` 105.8 crore from ` 62.3 crore in FY2012
• EPS (Basic) in FY2013 at ` 26.5 from ` 15.3 in FY2012
• Graphite electrode prices continue to contract further
• Needle coke prices for CY2013 fixed at lower rates as compared to previous
• Power division performance robust
• Exceptional item represents FX gain of ` 2.6 crore
• Healthy balance sheet continues to support operations

• World crude steel production (ex-China) for Q1 CY2013 was 3.6% lower as
compared to the corresponding period
• 2013 global apparent steel use expected to increase by 2.9 %, to 1,454 Mt,
following growth of 1.2% in 2012
(Source: World Steel Association)
• Graphite Electrodes demand based on steel produced via the EAF route
o Continued growth trajectory expected for steel produced through the EAF route
in the long run
• Pricing pressure on graphite electrodes and needle coke expected to

Commenting on the current scenario, Mr. Ravi Jhunjhunwala, Chairman and
Managing Director, HEG Limited, said:
“The global economic scenario has shown signs of improvement, though recovery
continues to drag. Emerging markets continue to gather economic momentum owing to
better local demand. The United States is delivering mildly positive growth whereas the
Euro zone continues to be affected on account of debt & sovereign crisis. The steel
industry, which is a barometer of global growth, has been cast into challenging times,
where barring China, growth is turning out to be negative. We have seen an impact on
graphite electrode prices, which have moved into softer territory as a result.
Given this scenario HEG has delivered an operating performance that is in line with our
projections. Overall, the Company has shown healthy capacity utilisation rates leading to
stable volumes as compared to the previous year. We continue to lay emphasis on
production of world-class quality products and aim to deliver better operational and
financial performance going forward.
We are cautious in our outlook given the short-term downward bias in prices of graphite
electrodes. Prices for needle coke, which is our key input, too have seen a similar trend in
the current year and should help translate into volumes and margins that are similar to
the levels seen this year.”

Commenting on the results, Mr. Manvinder Singh Ajmani, Head – Corporate
Strategy, HEG Limited, said:
“I am pleased that we have achieved full year capacity utilisation at around 75%, in an
environment marred by weaker demand for steel in the key developed countries. Graphite
electrodes have mirrored this trend with prices trending lower as steel makers chose to
defer orders.
Our focus during the quarter and much of last year has been to enhance the operating
metrics of graphite electrodes manufacture. The emphasis has been to drive up process
efficiencies, reduce wastage and benefit from lower consumption of power.
We have secured our needle coke supplies for the full year at lower prices as compared
to last year. Benefits of reduced pricing of needle coke are likely to be largely offset due
to lower pricing of graphite electrodes during the year, but going forward we expect to
hold on to a steady level of margins.
Full year performance of the power division was robust, resulting in margin expansion.
Due to the seasonality factor, operations at the hydel power plant in Tawa will resume
post commencement of monsoons.”

Q4 FY2013 review
Q4 FY2013 Net Revenues were higher by 9.5% at ` 446.3 crore as compared to ` 407.6 crore in
Q4 FY2012. In Q4 FY2013 revenues in graphite electrode division were higher by 9.5% at `
438.3 crore as compared to ` 400.3 crore in Q4 FY2012. Revenues in the Power division were
higher by 22.9% at ` 66.7 crore from ` 54.2 crore.
EBIDTA was at ` 72.9 crore in Q4 FY2013 from ` 76.9 crore in Q4 FY2012. PBIT of the graphite
division was ` 36.0 crore from ` 48.5 crore and PBIT for the power division was ` 19.9 crore from
` 9.4 crore.
In Q4 FY2013, the Company reported a forex gain of ` 2.6 crore. In Q4 FY2013 Profit Before Tax
was ` 41.4 crore as compared to ` 48.4 crore in Q4 FY2012. The Company’s Net Profit was `
35.1 crore in Q4 FY2013 as compared to ` 5.0 crore in Q4 FY2012. The Net Profit gave a basic
EPS of ` 8.80 for Q4 FY2013 as compared to ` 1.23 of Q4 FY2012.

FY2013 review
Net Revenues for FY2013 were higher by 13.9% at ` 1,622.6 crore from ` 1,424.6 crore in
FY2012. FY2013 graphite division revenues increased by 13.8% at ` 1,587.2 crore from `
1,394.7 crore in FY2012. FY2013 Power division revenues rose by 14.7%, at ` 248.4 crore from
` 216.4 crore. FY2013 EBITDA was increased by 18.6% at ` 306.7 crore as compared to ` 258.6 crore in
FY2012. The graphite division’s PBIT for FY2013 was rises by 3.7% at ` 147.1 crore from `
141.8 crore while earnings in power division for FY2013 were higher by 14.7% at ` 89.7 crore as
against ` 49.3 crore in the corresponding period.
FY2013 PBT was higher by 12.8% at ` 180.5 crore as compared to ` 160.0 crore in FY2012,
while PAT for FY2013 was higher by 69.8% at ` 105.8 crore as compared to ` 62.3 crore in
FY2012, implying a basic EPS of ` 26.5.

For further information, please contact:

Manvinder Singh Ajmani – Head Corporate Strategy

HEG Limited

Ph: +91 120 4390 224

Fax: +91 120 254 1575



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