HEG Advanced Materials (HEGAM) Q4 01/02 earnings summary

Executive summary

• FY02 turnover rose 3.38% to Rs 563.49 crore; net profit fell to Rs 30.94 crore from Rs 40.11 crore, amid weak steel and textile markets.

• Higher graphite volumes and exports supported performance; cost reductions and captive power helped sustain competitiveness.

Financial highlights

• Turnover was Rs 563.49 crore vs Rs 545.03 crore; exports were Rs 325.43 crore vs Rs 303.54 crore, or 57.75% of turnover.

• PBIDT was Rs 94.67 crore vs Rs 97.60 crore; PBT was Rs 38.11 crore vs Rs 42.24 crore.

• Net profit was Rs 30.94 crore vs Rs 40.11 crore; excluding extra-ordinary items, prior-year profit was Rs 42.53 crore. EPS was Rs 7.68 vs Rs 9.80.

• Gross block rose to Rs 477.65 crore from Rs 461.40 crore; net worth fell to Rs 219.72 crore from Rs 257.65 crore.

Outlook and guidance

• Steel prices and demand had begun improving; management expected stronger steel markets to support graphite-electrode demand in FY03.

• Closure of the loss-making Jammu textile unit and possible restructuring of Rishabhdev were expected to ease pressure on results.

• Graphite capacity expansion to 30,000 MT p.a. was complete and operating at rated capacity; expansion and overseas greenfield options were under study.