{"id":156365,"date":"2023-11-17T05:53:30","date_gmt":"2023-11-17T10:53:30","guid":{"rendered":"https:\/\/44.250.171.167\/?p=156365"},"modified":"2023-11-17T05:53:31","modified_gmt":"2023-11-17T10:53:31","slug":"heg-limited-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/heg-limited-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"HEG Limited Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from HEG Limited (HEG) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Steel Production Trends<\/strong>\n<ul>\n<li>Steel production outside China down 2-4% in 2022 vs 2021, but up 11.6% in India.<\/li>\n<li>China exporting more steel, pressuring production in Europe and U.S.<\/li>\n<li>World Steel Association revised 2023-2024 projections down for EU and U.S.<\/li>\n<li>Electric arc furnace (EAF) steel accounts for 50% of steel outside China, up from 44% in 2015.<\/li>\n<li>85 million tonnes of new EAF capacity announced in past 12-15 months.<\/li>\n<li>Projections of 535 million tonnes EAF steel production by 2030, up from 435 million tonnes currently.<\/li>\n<li>No new graphite electrode capacity announced to meet rising EAF demand.<\/li>\n<\/ul>\n<\/li>\n<li><strong>HEG Capacity Expansion<\/strong>\n<ul>\n<li>Expanded graphite electrode capacity to 100,000 tonnes now fully operational.<\/li>\n<li>Around 90% in Q1, 85% in Q2.<\/li>\n<li>Using latest, most modern and environmentally-friendly equipment.<\/li>\n<li>Approved 20,000 tonne graphite anode plant for EVs in one phase.<\/li>\n<li>Construction beginning soon, completion expected by mid-2025.<\/li>\n<li>Expect around 75% in Q3 and Q4.<\/li>\n<\/ul>\n<\/li>\n<li><strong>European Business<\/strong>\n<ul>\n<li>Antidumping duty of 7% in Europe for past 15-16 years.<\/li>\n<li>HEG paying the duty but hasn&#8217;t lost market share.<\/li>\n<li>Will continue selling current volumes and more in Europe.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Pricing Comparison<\/strong>\n<ul>\n<li>U.S. peer GrafTech has long-term contracts at high fixed prices.<\/li>\n<li>HEG not selling electrodes cheaper than competitors.<\/li>\n<\/ul>\n<\/li>\n<li><strong>China Anode Export Ban<\/strong>\n<ul>\n<li>China controls 92%+ of global graphite market.<\/li>\n<li>Ban adds confidence in HEG&#8217;s 20,000 tonne anode plant.<\/li>\n<li>Plant timing positive with ban in place.<\/li>\n<li>Aims to start domestic anode supply chain.<\/li>\n<li>Can source needle coke locally or import pitch coke.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Anode Plant Environment Approvals<\/strong>\n<ul>\n<li>Acquired land and obtained state clearances.<\/li>\n<li>Conducting central environment study.<\/li>\n<li>Can start some construction before full approval.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India Critical Mineral Auctions<\/strong>\n<ul>\n<li>Government inviting bids for 20 minerals including lithium and graphite.<\/li>\n<li>HEG makes synthetic graphite, won&#8217;t bid on natural graphite mining.<\/li>\n<li>Anode plant will use synthetic not mined graphite.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Competition<\/strong>\n<ul>\n<li>One competitor developing silicon-based anode in lithium-ion anode market.<\/li>\n<li>However, graphite still 90% plus of lithium-ion batteries.<\/li>\n<li>HEG does not expect 100% replacement of graphite before 2050.<\/li>\n<li>Epsilon planning $650M plant in US, smaller one in India.<\/li>\n<li>Similar product to HEG but different raw materials.<\/li>\n<li>Himadri also announced anode plans.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Sustainability Initiatives<\/strong>\n<ul>\n<li>Anode plant designed for carbon neutrality.<\/li>\n<li>Includes renewable energy, green belts.<\/li>\n<li>Electrodes use hydro, solar power.<\/li>\n<li>Similar to initiatives by global peers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Anode Plant Capex and Margins<\/strong>\n<ul>\n<li>Capex of INR1,000 crores estimated for 10,000 tonnes.<\/li>\n<li>20,000 tonnes will be less than double due to savings.<\/li>\n<li>Targeting 30% EBITDA margins.<\/li>\n<li>5-6 year payback period.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from HEG Limited (HEG) Q2 FY24 Earnings Concall Steel Production Trends Steel production outside China down 2-4% in 2022 vs 2021, but up 11.6% in India. China exporting more steel, pressuring production in Europe and U.S. World Steel Association revised 2023-2024 projections down for EU and U.S. Electric arc furnace (EAF) steel accounts [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[10169,8875,9478],"class_list":["post-156365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-earnings","tag-electrical-equipment-parts","tag-industirals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":180396,"url":"https:\/\/alphastreet.com\/india\/heg-limited-posts-strong-q3-fy26-profit-growth-as-graphite-electrode-demand-improves-margins-expand\/","url_meta":{"origin":156365,"position":0},"title":"HEG Limited posts strong Q3 FY26 profit growth as graphite electrode demand improves; margins expand","author":"Staff Correspondent","date":"February 11, 2026","format":false,"excerpt":"HEG Limited (NSE: HEG, BSE: 509631) reported a sharp improvement in profitability for the quarter and nine months ended Dec. 31, 2025, supported by higher realizations, operating leverage and cost discipline, even as global steel production remained under pressure, according to the company\u2019s investor presentation on unaudited results. Q3 FY26\u2026","rel":"","context":"In &quot;LATEST&quot;","block_context":{"text":"LATEST","link":"https:\/\/alphastreet.com\/india\/category\/latest\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":159170,"url":"https:\/\/alphastreet.com\/india\/heg-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":156365,"position":1},"title":"HEG Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"February 23, 2024","format":false,"excerpt":"Key highlights from HEG Limited (HEG) Q3 FY24 Earnings Concall Steel Production Trends Global steel production flat in 2023 versus 2022 at around 1.8 billion tons. China production declined in H2 2023 but increased exports by 34%. India steel production grew 12% driven by domestic infrastructure and real estate. Expect\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":148446,"url":"https:\/\/alphastreet.com\/india\/heg-limited-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":156365,"position":2},"title":"HEG Limited Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"June 5, 2023","format":false,"excerpt":"Key highlights from HEG Limited (HEG) Q4 FY23 Earnings Concall Q&A Highlights: [00:12:50] Vipraw Srivastava of InCred asked if an increase is expected in US sales contribution with the upcoming EAF plants. Ravi Jhunjhunwala MD replied that in the last four years, sales in the US have increased 2.5 to\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":130763,"url":"https:\/\/alphastreet.com\/india\/heg-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":156365,"position":3},"title":"HEG Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"June 23, 2022","format":false,"excerpt":"https:\/\/youtu.be\/Zn0qJUSwtSo Key highlights from HEG Limited (HEG) Q4 FY22 Earnings Concall \u00a0 Q&A Highlights: Sonali Salgaonkar \u2013 Jefferies - Analyst Quantum of price hikes between 3Q and 4Q and any price hike from April 1 until now? Ravi Jhunjhunwala - Managing Director Between 3Q and 4Q it\u2019s 12% and expecting\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":133492,"url":"https:\/\/alphastreet.com\/india\/heg-limited-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":156365,"position":4},"title":"HEG Limited Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 29, 2022","format":false,"excerpt":"https:\/\/youtu.be\/rStQaBDBBUY Key highlights from HEG Limited (HEG) Q1 FY23 Earnings Concall Q&A Highlights: Dhawal Doshi of Pinpoint Asset asked how the company is seeing needle coke pricing given crude has started correcting. Manish Gulati ED said the needle coke prices for the last two quarters, purchase prices have been at\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":143242,"url":"https:\/\/alphastreet.com\/india\/heg-limited-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":156365,"position":5},"title":"HEG Limited Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"March 13, 2023","format":false,"excerpt":"Key highlights from HEG Limited (HEG) Q3 FY23 Earnings Concall Q&A Highlights: [00:11:28] Sonali Salgaonkar from Jefferies enquired about the capacity utilization for 3Q23. Ravi Jhunjhunwala CEO answered that for Oct.-Dec. quarter it was about 60% and in Jan.-Mar., the company is at about 70%. And in 3Q22 it was\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/156365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=156365"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/156365\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=156365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=156365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=156365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}