Key Stats

Day's Price Range
52-Week Price Range
1 Month Return-18.41 %
3 Month Return5.79 %
1 Year Return-53.82 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

Rank 48
Rank 11
Rank 5
Dividend Yield
Rank 125
Rank 169
Price To Book Ratio
Rank 54
Debt To Asset
Rank 279

Company Information

HEG Limited incorporated in 1972 is a leading manufacturer and exporter of graphite electrodes in India and operates worlds largest singlesite integrated graphite electrodes plant at Mandideep in Madhya Pradesh. The company also operates three power generation facilities with a total rated capacity of about 76.5 MW. The power generation primarily fuels the graphite electrode manufacturing operations with the surplus being sold in the open market. The company exports over 70 of its production to more than 30 countries of the world.The company produces two grades of graphite electrodes High Power and Ultra High Power which are manufactured according to the customers needs and requirements. The company is a major exported of graphite electrode with a number of respected steel manufactures namely ArcelorMittal POSCO Thyssenkrupp US Steel Nucor and Usinor in their customer base.HEG Ltd earlier known as Hindustan ElectroGraphites Ltd was incorporated in the year 1977. The company is a premier company of the LNJ Bhilwara group. They started as an importer of electrodes and latter turned to production of Graphite electrodes with financial and technical assistance from La Societe Des Electrodes Et Refractories Savoi a subsidiary of Pechiney France.In the year 1992 the company and Rajasthan Spinning Weaving Mills Ltd jointly promoted a 100 export oriented unit for cotton mills went into production. During the year 199596 the company completed the 9216 spindles and modernization of Rishabhdev unit with Autocover at a total cost of Rs 33 crore. During the year 199697 the company expanded the graphite division to the total capacity of 24000 tons. They commissioned the 13.5 MW Tawa hydroelectric power plant the first hydroelectric project by private sector in the state of Madhya Pradesh. Also they commissioned the 12.8 MW cogeneration power unit during the year.During the year 199899 Rishabhdev unit successfully commissioned a 4.2 MW Wartsaila Generating set for captive consumption of the Textile Division. During the year 200001 the company exited from the telecom sector which was a joint venture with Motorola as the same was not germane to the existing businesses.During the year 200102 the company expanded the installed capacity of Graphite Electrodes to 30000 MT per annum at a cost of Rs 47 crore and they discontinues the operations at their textile unit in Jammu as the unit became unviable during the year 200203.The company demerged the textile business located at Rishabhdev in Rajasthan with effect from April 1 2003 which was merged with the Rajasthan Spinning Weaving Mills Ltd. They set up a new kiln with an additional capacity if 30000 MTPA for Sponge Iron during the year 200304.During the year 200405 the company increased the production capacity of Graphite Electrodes at Mandideep from 30000 to 52000 MT per annum. Also they commissioned a new 25 MW Captive Power Plant at Mandideep. The company entered into a joint venture with Statkraft Norfund Invest AS SN Power Norway for setting up Hydro Power Generation projects in India. Also they added another prestigious partner International Finance Corporation Washington as Equity Holders in the AD Hydro Power Project.During the year 200506 the company acquired Jaipur Polyspin Ltd to manufacture Synthetic dyed Blended Yarn. Also they acquired an openend plant with 1680 rotors from Phillipines. The company introduced readytowear Apparels manufactured at a newly set up unit in Bangalore. Also they commissioned Hydro Electric Project in Malana.In April 2007 the company made an investment of Rs 35 crore towards debottleneckingin the graphite electrode plant. In July 2007 the company sold their fully integrated steel business which includes sponge iron steel billets and a 13MW waste heat recovery power system power plant to Jai Balaji Industries Ltd of Kolkata.HEG Ltd ramped up production during the later part of the financial year 201314 to fulfill customers delivery commitments. During the year under review the company widened its raw material supplier base optimised its power consumption improved operational efficiencies and achieved new customer approvals.FY 2015 was one of the most challenging years for HEG Ltd as the graphite electrode industry saw erosion in margins. During the year under review HEG Ltd took major initiatives to usher in qualitative improvement. A keen emphasis was laid on optimising costs across all operational and commercial areas. The companys focus on reducing working capital continued to show improvements in the level of plant inventories receivables and other current assets thereby releasing cash for productive purposes. During the financial year ended 31 March 2016 HEG Ltd focused on improving operating and cost parameters to counter the impact of fall in graphite electrode prices. By reformulating its operational management discipline and undertaking several costcutting measures HEG Ltd was able to reduce the impact of declining profit margins. Reduced capacity utilisation as a result of reduced demand provided the time and space to the management to figure out ways and means to efficiently utilise the capacities at its disposal. New recipes for both electrodes and nipples were introduced for better quality. A keen emphasis was laid on optimising costs across all operational and commercial areas. The companys effort to match reduced levels of capacity utilisation with corresponding reduction in working capital paid off.HEGs thermal plant continued to operate at significantly reduced levels during the year. The company continued to optimise coal consumption and usage of power.The Board of Directors of HEG Ltd at its meeting held on 30 May 2017 accorded its inprinciple approval for closure of its wholly owned subsidiary i.e. HEG Graphite Products and Services Limited. This wholly owned subsidiary was incorporated in the year 2009 but never carried out any commercial operation.The financial year ended 31 March 2018 was a record year for HEG Ltd largely driven by favourable tailwinds robust growth in demand even as supply remained constrained leading to a significant rise in product price realisation. This resulted in the best ever financial numbers. The company registered its ever highest ever net profit of Rs 1081.34 crore. The company registered the highest electrode production at 64000plus MT in 201718 against 50000 MT level in 201617. Even as demand surged the company continued to strengthen its operational efficiencies. The company repaid its entire longterm debt and has plans to invest the cash surplus in avenues that enable it to sustain its growth momentum.During the Financial Year 201819 the paid up share capital of the Company was reduced from Rs 399591420 to Rs 385955060 owing to Buyback of 1363636 Equity Shares of Rs 10 each.The Company after obtaining Shareholders approval had bought back 1363636 Thirteen Lakh Sixty Three Thousand Six Hundred and Thirty Six fully paidup equity shares of face value of Rs 10 Rupees Ten Only each representing approximately 3.41 of the total number of equity shares in the paidup equity share capital of the Company as at 30th September 2018 from the shareholders / beneficial owners of equity shares of the Company as on the record date i.e. 9th February 2019 on a proportionate basis through the tender offer under stock exchange mechanism route at a price of Rs 5500 Rupees Five Thousand Five Hundred only per equity share for an amount of Rs 7499998000/.As on 31 March 2019 the company has two Associate companies namely Bhilwara Infotechnology Ltd. and Bhilwara Energy Ltd. Bhilwara Infotechnology Ltd. The Board of Directors of the Company on 2nd April 2019 had decided to purchase additional 32351004 shares in Bhilwara Energy Ltd. an Associate Company for an aggregate consideration of Rs 162.05 Crores based on the valuation report of M/s Walker Chandiok Co. LLP at a price of Rs 50.09 per share. Post the acquisition of shares the holding of the Company in Bhilwara Energy Ltd an Associate Company would increase from 29.48 to 49. World Health Organisation WHO declared outbreak of coronavirus disease COVID19 a global pandemic on March 112020 consequent to this government of India declared lockdown on March 23 2020 and the company temporarily suspended the operations of the company in compliance with the lockdown instructions issued by central and state governments. COVID19 has impacted the normal business operations of the company by way of interruption of production supply chain disruptions unavailability of personnel closure/lock down of production facilities etc. during the lockdown period which has been extended till May 172020. However production and supply of goods has commenced during the month of April 2020.
OrganisationHEG Ltd
IndustryCapital Goods-Non Electrical Equipment