HEG Ltd's Q3FY25 Quarter Results
- 12 Feb 2025
Result Summary
- HEG Ltd reported a 3.4% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 0.7%.
- Its expenses for the quarter were down by 13.2% QoQ and 14.0% YoY.
- The net profit increased 1.4% QoQ and increased 91.0% YoY.
- The earnings per share (EPS) of HEG Ltd stood at 4.3 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 589.96 | 610.56 | 585.62 | -3.4% | 0.7% |
Total Expenses | 458.46 | 528.28 | 532.88 | -13.2% | -14.0% |
Profit Before Tax | 131.50 | 82.28 | 52.74 | 59.8% | 149.3% |
Tax | 35.17 | 20.39 | 15.75 | 72.5% | 123.3% |
Profit After Tax | 83.40 | 82.28 | 43.66 | 1.4% | 91.0% |
Earnings Per Share | 4.30 | 21.30 | 11.30 | -79.8% | -61.9% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
HEG Ltd is a leading manufacturer in the graphite electrode industry, primarily serving the steel manufacturing sector. The company produces high-quality graphite electrodes used in electric arc furnaces for steel production. As a part of the LNJ Bhilwara Group, HEG Ltd has established a significant presence in both domestic and international markets. The company is known for its state-of-the-art manufacturing facility located in Mandideep, near Bhopal, India. HEG Ltd has been in operation for several decades and has consistently focused on enhancing its production capabilities and maintaining quality standards. The company also engages in exporting its products to several countries across the globe.
Revenue
In the third quarter of fiscal year 2025 (Q3FY25), HEG Ltd reported a total income of ₹589.96 crores. This represents a slight decrease of 3.4% compared to the previous quarter (Q2FY25), where total income was ₹610.56 crores. However, when compared to the same quarter in the previous fiscal year (Q3FY24), there was a marginal increase of 0.7%, with total income then being ₹585.62 crores. The quarterly decline in revenue could be attributed to various factors, including market fluctuations and demand cycles typical within the graphite electrode industry. It's also notable that the year-over-year growth, although modest, indicates some level of consistency in the company's revenue generation efforts.
Profitability
HEG Ltd's profitability saw significant improvement in Q3FY25. The profit before tax (PBT) for this quarter was ₹131.50 crores, marking an impressive 59.8% increase from Q2FY25's PBT of ₹82.28 crores. Year-over-year, the PBT surged by 149.3% from the Q3FY24 figure of ₹52.74 crores. The profit after tax (PAT) in Q3FY25 was ₹83.40 crores, slightly higher by 1.4% from the previous quarter's PAT of ₹82.28 crores, and a substantial increase of 91.0% compared to the ₹43.66 crores reported in Q3FY24. The tax expenses for Q3FY25 were ₹35.17 crores, showing a significant rise of 72.5% from Q2FY25 and 123.3% from Q3FY24. These figures reflect an improved profitability scenario for the company over the past year.
Operating Metrics
HEG Ltd's total expenses in Q3FY25 were ₹458.46 crores, showing a significant reduction of 13.2% from Q2FY25, which recorded expenses of ₹528.28 crores. This reduction is even more pronounced on a year-over-year basis, with a 14.0% decrease from Q3FY24's expenses of ₹532.88 crores. The company's earnings per share (EPS) for Q3FY25 were ₹4.30, which significantly dropped by 79.8% from the previous quarter's EPS of ₹21.30 and decreased by 61.9% compared to Q3FY24's EPS of ₹11.30. This decline in EPS, despite improved profitability, could be influenced by various factors, including changes in share capital or other corporate actions not detailed in the provided data.
