“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 Mr. 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,’’ Mr. 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,” Mr. Jhunjhunwala said.
Q1 FY19 Standalone performance:
Revenue up 644 per cent to Rs 1595crore as against Rs 214 crore in Q1FY18
Q1 EBITDA stood at Rs 1196 crore as against Rs 24 crore in the corresponding period last year
EBIDTA margin stood at 75 per cent compared with 11 per cent in Q1FY18
PAT Rs 770 crore as against Rs (8.43) crore in Q1FY18
