HEG Ltd Reports June Quarter Revenue of Rs 6.81 Billion

NOIDA / BHOPAL — Leading industrial manufacturer HEG Limited has announced its consolidated financial results for the first quarter ended June 30, posting revenue from operations of Rs 6.81 billion (Rs 681 crore). The flagship company of the LNJ Bhilwara Group delivered a consolidated net profit of Rs 1.22 billion (Rs 122 crore) for the June quarter, signaling operational stabilization across its core graphite electrode manufacturing business.

The quarterly financial report was reviewed and approved during a meeting of the company's Board of Directors. The bounce-back in operational profitability follows disruptions in prior quarters that were influenced by global raw material cost fluctuations and mark-to-market accounting adjustments on international equity investments.

Financial Breakdown and Quarter-on-Quarter Recovery

The June quarter performance highlights operational resilience supported by steady capacity utilization at HEG's ultra-high power (UHP) graphite electrode manufacturing facility in Mandideep, Madhya Pradesh.

Key financial metrics reported in the official disclosure include:

• Revenue from Operations: Consolidated top-line revenue reached Rs 6.81 billion (Rs 681 crore), reflecting healthy off-take from domestic and overseas steelmakers.

• Consolidated Net Profit: Net profit after tax stood at Rs 1.22 billion (Rs 122 crore), demonstrating a turnaround from the sequential loss in Q4 driven by GrafTech mark-to-market adjustments.

• Operating Margins: Operational EBITDA margins returned toward management's guided target of approximately 20%, benefiting from locked-in needle coke input costs.

The improved numbers reflect steady demand from Electric Arc Furnace (EAF) steel producers across key markets in North America, Europe, and Asia.

Raw Material Supply and Strategic Corporate Initiatives

HEG Limited's performance was supported by disciplined cost management and strategic corporate restructuring efforts aimed at unlocking long-term shareholder value.

1. Needle Coke Cost Control: Management successfully mitigated input price volatility by securing fixed-price needle coke contracts extending through September.

2. Graphite Electrode Demerger: The company's proposed Composite Scheme of Arrangement to demerge its graphite electrode business has reached advanced regulatory stages, with the National Company Law Tribunal (NCLT) reserving its final order.

3. Anode Material Expansion: Progress continues on the company's greenfield graphite anode project aimed at supplying lithium-ion battery manufacturers, supported by secured credit facilities.

Market Outlook and Steel Industry Impact

Graphite electrodes are essential, non-replaceable components utilized in Electric Arc Furnace steelmaking to melt scrap iron and steel. Industry analysts note that domestic steel production growth in India, alongside expanding green steel initiatives worldwide, continues to support baseline demand for high-capacity graphite electrodes. However, ongoing geopolitical tensions and global freight route adjustments remain key variables monitored by exporters.

Official Sources Section

The information presented in this report is sourced directly from regulatory communications and public exchange filings issued by:

• HEG Limited Quarterly Financial Filings submitted under SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.

• National Stock Exchange of India (NSE) corporate action disclosures.

• BSE Limited listing announcements.

• National Company Law Tribunal (NCLT) corporate restructuring orders.

Quote Section

According to official filings submitted by company management:

"The Board of Directors approved the unaudited consolidated financial results for the quarter ended June 30, recording revenue from operations of Rs 6.81 billion and a net profit of Rs 1.22 billion, supported by operational efficiency and steady demand across primary customer markets."

Why It Matters

• For Investors: Confirms a return to net profitability and operational margin recovery following prior investment fair-value headwinds.

• For the Steel Sector: Indicates healthy utilization rates among electric arc furnace steelmakers who rely on ultra-high-power graphite electrodes.

• For Energy Transition: Demonstrates financial stability as HEG advances capital deployment toward its battery-grade synthetic anode project.

Key Facts at a Glance

• Consolidated Revenue: Rs 6.81 billion (Rs 681 crore) for the June quarter.

• Consolidated Net Profit: Rs 1.22 billion (Rs 122 crore) for the April–June period.

• Input Costs: Key raw material (needle coke) prices secured via fixed contracts through September.

• Strategic Corporate Event: Demerger scheme awaiting final NCLT sanction order.

Frequently Asked Questions (FAQs)

What were HEG Ltd's financial results for the June quarter?

HEG Limited reported consolidated revenue from operations of Rs 6.81 billion and a consolidated net profit of Rs 1.22 billion for the quarter ended June 30.

What is HEG's primary line of business?

HEG Limited is one of the world's largest single-site manufacturers of graphite electrodes, which are used primarily in Electric Arc Furnaces for steel manufacturing.

How is HEG managing its raw material costs?

The company secures its key raw material, needle coke, through fixed-price supply contracts that remain locked through September.

Where are HEG Limited shares traded?

HEG Limited's equity shares are actively traded on both the National Stock Exchange of India (NSE) and BSE Limited.

Source: Official corporate disclosures from HEG Limited, regulatory announcements on the National Stock Exchange of India (NSE), and listing filings on BSE Limited.