HEG posts Rs 770 crore net profit in June quarter

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Published: August 2, 2018 3:09:32 PM

Graphite electrode manufacturer HEG today said it has registered a net profit of Rs 770 crore for the June quarter, compared with a net loss of Rs 8.43 crore in year-ago period.

HEG,  Ravi Jhunjhunwala, steel industry, graphite industry, Global graphite electrode demand HEG chairman and managing director Ravi Jhunjhunwala said the company is contemplating an increase in the operational capacity to capitalise on the structural changes in the industry. (Reuters)

Graphite electrode manufacturer HEG today said it has registered a net profit of Rs 770 crore for the June quarter, compared with a net loss of Rs 8.43 crore in year-ago period. The company’s revenue also jumped by 644 per cent to Rs 1,595 crore, against Rs 214 crore last year, a release said.

HEG chairman and managing director Ravi Jhunjhunwala said the company is contemplating an increase in the operational capacity to capitalise on the structural changes in the industry. “The graphite industry globally, and in India, remains buoyant given the structural changes that have been brought about because of macroeconomic factors. Due to challenging entry barriers and being a highly capital intensive business, supply constrains are expected to continue till the foreseeable future,’’ said Ravi Jhunjhunwala, Chairman & Managing Director, HEG Ltd.

“The steel industry continues to grow globally, and electric arc furnaces continue to take a more important place. Our main raw material, needle coke, which has also found new application in Lithium ion batteries, has made any meaningful expansion in the industry difficult, hence making the entry barriers higher,’’ Jhunjhunwala added.

“Given the factors above and given China’s war on polluting industries, we believe the current upsurge in Global graphite electrode demand to sustain its momentum over the foreseeable future as the demand -supply is widening. HEG is contemplating an increase in the operational capacity to capitalise on the structural changes in the industry. We also looking at the possibility of debottlenecking our plant, for which necessary steps are being taken currently,” Jhunjhunwala said.

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