In past one year, the market value of HEG zoomed 1,245% from Rs 234, against 13% rise in the benchmark index.
The company had reported a robust performance during the first nine months (April-December) of current financial year 2017-18 (FY18), posted net profit of Rs 4,473 million. It had reported a net loss of Rs 466 million during the same period of FY17 and loss of Rs 500 million in entire FY17.
“Closures of around 200,000 mt of electrodes capacities outside China, closures of another approximately 300,000 mt capacities in China, sharp reduction in finished steel exports from China along with a sharp reduction in billet exports from China , large closures of steel capacities in China – all these factors resulted into supply and demand imbalance of electrodes and a spurt in the demand of electrodes in all parts of the world, incl India and have led to a sharp increase in prices of electrodes,” HEG said while announcing December quarter results.
HEG’s debt has dropped to Rs 2 billion, which is likely to be NIL in Q4FY18 itself. The company has been evaluating capacity expansion by 20ktpa depending on Needle Coke availability.
Analysts at Emkay Global Financial Services said that earnings improvement will continue, March being the first month of new and higher prices. Even though Needle Coke prices rise, the spread will still be much favorable.
At 09:52 am; HEG was trading 3.4% higher at Rs 3,122 on the BSE against 0.54% decline in the S&P BSE Sensex. A combined 567,294 shares changed hands on the counter on the BSE and NSE so far.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in