Flagship of the LNJ Bhilwara group, HEG is a diversified company with interests in graphite electrodes and power.
For the Q2 ended 30th Sept 2009, though actual numbers on a QoQ have gone up, the margins have reduced sequentially. YoY the story is other way round - the numbers show pressure but margins have gone up. Net sales was at Rs.272.13 crore, up 18% on QoQ but down 7% on YoY. Net profit was at Rs.44.24 crore, up 6% QoQ but up 40% on a YoY. This was possible due to cost cutting measures taken. Expenses which were at 75% of the topline, reduced to 66% in Q2FY10 on a YoY.
OPM was at 34.69%, up from 26.21% (YoY) but down from 37.08% (QoQ). NPM was at 16.20% v/s 10.66% (YoY) and 18.03% (QoQ). This fall sequentially was on account of the costs, which have actually gone up from Q1FY10. Also due to its seasonal nature, the hydro electric plant at Tawanagar operated only for a part of the quarter under review, that too affected the performance to some extent.
HEG generates 60MW of power of which, after consuming 40MW, it sells the remaining in open market and average realisations on the sale of this surplus power was at around Rs 4.5-5/MW.
By Jan 2010, the additional capacity of 6000 tonnes, taking the total capacity to 66,000 tpa will go stream. Realisations, which were down have now seen a 8-10% rise and in the remaining quarters of FY10, it is expected to remain more or less at the same levels. Capacity utilization for FY10 is estimated at 85-90%.
The company completed its buyback programme successfully by buying 32,95,703 equity shares at an average price of Rs.147.15 per share from its Paid-up Equity Capital; out of which 6,07,250 Equity shares were bought back in the quarter under review. Post this, as at 30th Sept 09’, promoter’s holding is at 53.74%, up from 49.74% in Q2FY09.
For the Q2 ended 30th Sept 2009, though actual numbers on a QoQ have gone up, the margins have reduced sequentially. YoY the story is other way round - the numbers show pressure but margins have gone up. Net sales was at Rs.272.13 crore, up 18% on QoQ but down 7% on YoY. Net profit was at Rs.44.24 crore, up 6% QoQ but up 40% on a YoY. This was possible due to cost cutting measures taken. Expenses which were at 75% of the topline, reduced to 66% in Q2FY10 on a YoY.
OPM was at 34.69%, up from 26.21% (YoY) but down from 37.08% (QoQ). NPM was at 16.20% v/s 10.66% (YoY) and 18.03% (QoQ). This fall sequentially was on account of the costs, which have actually gone up from Q1FY10. Also due to its seasonal nature, the hydro electric plant at Tawanagar operated only for a part of the quarter under review, that too affected the performance to some extent.
HEG generates 60MW of power of which, after consuming 40MW, it sells the remaining in open market and average realisations on the sale of this surplus power was at around Rs 4.5-5/MW.
By Jan 2010, the additional capacity of 6000 tonnes, taking the total capacity to 66,000 tpa will go stream. Realisations, which were down have now seen a 8-10% rise and in the remaining quarters of FY10, it is expected to remain more or less at the same levels. Capacity utilization for FY10 is estimated at 85-90%.
The company completed its buyback programme successfully by buying 32,95,703 equity shares at an average price of Rs.147.15 per share from its Paid-up Equity Capital; out of which 6,07,250 Equity shares were bought back in the quarter under review. Post this, as at 30th Sept 09’, promoter’s holding is at 53.74%, up from 49.74% in Q2FY09.
Source: Internet (by S P Tulsian)
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