HEG Advanced Materials (HEGAM) Q4 97/98 earnings summary

Executive summary

• Turnover rose 42% YoY to Rs 415.51 crore; exports increased 81% to Rs 202.68 crore, supporting a 38% rise in PAT to Rs 30.51 crore despite weak domestic conditions.

• Operating profit before interest, depreciation and taxes increased 50% to Rs 97.38 crore; interest expense rose to Rs 45.73 crore from Rs 25.32 crore.

Financial highlights

• Revenue was Rs 415.51 crore versus Rs 293.00 crore; export turnover was Rs 202.68 crore versus Rs 112.37 crore.

• PBIDT was Rs 97.38 crore versus Rs 64.89 crore; PBDT was Rs 51.65 crore versus Rs 39.57 crore.

• PBT reached Rs 33.14 crore versus Rs 25.43 crore; PAT was Rs 30.51 crore versus Rs 22.17 crore.

• Net worth increased to Rs 180.96 crore from Rs 158.75 crore; gross block rose to Rs 374.23 crore from Rs 331.12 crore.

Outlook and guidance

• Graphite expansion completed late in the prior year improved the product mix toward UHP and larger electrodes; better positioned to pursue a larger share of the global market.

• Graphite export demand was expected to benefit as EAF steel strengthened globally; new Rishabhdev captive generation was being commissioned to secure lower-cost, uninterrupted power.

• Debt restructuring was expected to reduce the interest burden in coming years after replacing high-cost debt with lower-cost rupee loans.