HEG Advanced Materials (HEGAM) Q4 00/01 earnings summary

Executive summary

• FY2000-01 turnover rose 17% YoY to Rs 545.03 crore, driven mainly by higher Graphite Division volumes; exports increased 38% to Rs 303.54 crore, or 56% of turnover.

• Net profit was Rs 40.11 crore versus Rs 30.39 crore; excluding the Rs 2.42 crore non-recurring telecom investment loss, net profit was Rs 42.53 crore.

Financial highlights

• PBIDT increased to Rs 97.60 crore from Rs 87.61 crore; PBT was Rs 42.24 crore versus Rs 30.02 crore.

• Export turnover reached Rs 303.54 crore from Rs 219.67 crore; domestic turnover was Rs 241.49 crore versus Rs 246.26 crore.

• Gross block was Rs 461.40 crore versus Rs 417.81 crore; net worth rose to Rs 257.65 crore from Rs 237.42 crore.

Outlook and guidance

• Graphite electrode export volume growth of 23% was expected to continue in the next year; expanded capacity and wider global market reach were cited as growth opportunities.

• Graphite capacity expansion to 30,000 MT, costing Rs 50 crore, was nearing completion; planned benefits included higher volumes, scale economies and a more market-aligned product mix.

• EAF steel production growth was expected to continue in 2001, supporting electrode demand; management expected to capture a larger world-market share with expanded capacity.