GE Major HEG Ltd records dramatic fall in Sales and Profits for Q3 FY20

India’s Graphite Electrodes (GE) producer, HEG Limited has released its results for the quarter ended December 2019:

Sales plunged by 79% y-o-y basis in Q3 FY20: The company’s revenue from operations declined 79% YoY to INR 394 crore during the quarter under review against INR 1,865 crore in Q3 FY19. If we compare the company’s revenues against last quarter ended in Sep’19, the same has plunged by 30% q-o-q basis.

Segment-wise, revenue from graphite vertical stood at INR 387 crore, down 79% YoY. Power generated revenue of INR 6.56 crore, down 81% YoY.

Standalone net profits fell by 99% Y-o-Y- The company has reported a drop in profits by 99% y-o-y basis in its standalone net profits from INR 866 crore in Q3 FY19 to INR 5.94 crore in Q3 FY20. While in case of previous quarter i.e. Q2 FY20, the same stood at around INR 179 crore. In terms of consolidated profits, the same stood at INR 1.23 crore for the quarter under review against INR 444.60 crore profit registered in the year-ago period.

Financial Results Q2 FY20 vs Q3 FY20 comparison

EBIDTA drops by almost 100% y-o-y in Q3 FY20: Earnings before interest, tax, depreciation and amortisation (EBIDA) fell 99.6% to INR 4.7 crore while margin stood at 1.2% against 70% in the year-ago period.

HEG’s performance during Apr-Dec’20

The company has reported net sales of INR 1,876.05 crores during the 9 months period ended December 31, 2019 as compared to INR 5,313.08 crores during the 9 months period ended December 31, 2018.

The company has posted net profit of INR 444.60 crores for the 9 months period ended December 31, 2019 as against INR 2,543.89 crores for the 9 months period ended December 31, 2018.

Financial Results (9 months ended FY 19-20) – YoY Comparison