November 21, 2008

HEG 2007-08 profit up by 98% YoY

Graphite electrodes manufacturing firm HEG Limited has posted a net profit of INR 146 crore for the year ended March 31st 2008 up by 98% YoY as compared with last year. The net revenue stood at INR 236.7 crore and exports rose by 19% YoY to INR 184.1 crore from INR 154.8 crore.

Mr Ravi Jhunjhunwala CMD of HEG Limited said that "I am happy to announce another robust performance for the quarter, on the back of higher realizations in our graphite electrodes business. We have got full benefits from our power plants, leading to healthy growth performance in our power division. Our stabilized capacities have led to scaling up of our business, where we have the advantage of becoming a leading manufacturer in the graphite electrodes space. The strong demand scenario will continue in the graphite electrodes division, driven by higher volumes and improved product prices."

HEG is also planning to add 20,000 tonnes per annum of graphite electrodes to its present capacity of 60,000 tonnes per annum. The additional capacity would become operational by the last quarter of 2009. It is in the process of implementing its expansion plan of its captive power generation capacity by 33 MW at an investment of INR 90 crore. It is also focusing on high grade value added ultra high power products.