Q1 2026 HEG Ltd Earnings Call Transcript
Key Points
- HEG Ltd (BOM:509631) reported a significant increase in revenue from operations, reaching INR 613 crore for the quarter ended June 30, 2025, compared to INR 571 crore in the same quarter of the previous year.
- The company achieved a notable improvement in EBITDA, recording INR 154 crore for the quarter, up from INR 59 crore in the corresponding quarter of the previous year.
- HEG Ltd (BOM:509631) is operating at over 90% capacity utilization on its newly expanded capacity of 100,000 tonnes, indicating strong operational efficiency.
- The company is debt-free on a long-term basis and maintains a substantial treasury size of nearly INR 977 crore as of June 30, 2025.
- HEG Ltd (BOM:509631) is strategically positioned as one of the lowest-cost producers globally, benefiting from a single large production base and competitive cost structure.
- Global steel production has declined by 1.9% year-on-year, impacting the demand environment for graphite electrodes.
- The recent imposition of a 25% duty in the US, a key market for HEG Ltd (BOM:509631), poses a challenge, although the company is working to minimize its impact.
- The graphite electrode market continues to face challenging conditions due to macroeconomic headwinds and muted industrial recovery in several countries.
- Despite the company's strong performance, the industry is experiencing unsustainably low price levels, which could affect future profitability.
- The expansion plan to increase capacity from 100,000 tonnes to 115,000 tonnes involves a significant CapEx of about INR 650 crore, which may strain financial resources if market conditions do not improve.
Ladies and gentlemen, good day, and welcome to HEG Limited Q1 FY '26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Nikunj Pachisia from SKP Securities Limited. Thank you, and over to you, sir.
Good afternoon, ladies and gentlemen. I'm pleased to welcome you on behalf of HEG Limited and SKP Securities to this financial results conference call with the leadership team of HEG Limited. We have with us Mr. Ravi Jhunjhunwala, Chairman, Managing Director and CEO; Mr. Riju Jhunjhunwala, Vice Chairman; along with their colleagues, Mr. Manish Gulati, Executive Director; Mr. Om Prakash Ajmera, Group CFO; Mr. Ravi Tripathi, CFO; Mr. Puneet Anand, CSO; and Mr. Ankur Khaitan, MD and CEO of TACC Limited. We will have the opening remarks from Mr. Jhunjhunwala, followed by Q&A session. Over to you, Ravi-ji.
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