China's push for blue skies may fuel gains for graphite maker HEG

HEG plans to increase its annual capacity by a quarter to 100,000 tons in about three years to meet higher demand

The world’s most profitable graphite electrode maker expects China’s push for blue skies to fuel higher margins as it bolsters demand for the steelmaking ingredient.

India’s HEG expects revenue to more than double and the pretax margin to rise to as much 75 percent as demand remains strong because of environmental curbs in China, according to Chief Executive Officer Ravi Jhunjhunwala. That’s after its earnings before interest, taxes, depreciation, and amortization margin rose to a record 64.6 percent in the year ended March 31, making it the most profitable graphite electrode producer on the planet, data compiled by Bloomberg shows.