India’s leading graphite electrodes manufacturer has posted its fourth-quarter result for FY20 (Jan-Mar’20) and the numbers reflect the tough times through which GE companies are once again dealing with.
The company has posted a net loss INR 366 crore for the quarter ended March 2020 against a net profit of INR 524 crore in the corresponding quarter for the previous fiscal year.
In terms of sales, the same stood at INR 374 crore in Q4 FY20 against 1,346 crore in Q4 FY19.
The company has highlighted that being an export-oriented company with 70% exports going to U.S., Middle East, Europe, their business is dependent on global economic conditions. However, with the spread of Covid-19, the overall demand for steel and electrodes have reduced.
“Since most of all our end-user industries have been impacted in varying degrees owing to spread of the pandemic related contraction and its consequent effects on global supply chains, the ripple effect of this, like in most industries, is also faced by our customers and in extension by us. We have seen lower off take in April and May and it is difficult to estimate how soon things will revert to normal,” company said.
Further the organisation added that “it is very early to assess the future impact of Covid-19 with reasonable certainty. However, we are getting order booking from the domestic and export market and have also started dispatch in the export market resulting in which we expect our business to improve gradually.”
The company had closed its operations for a month till 23 April post announcement of lockdown by the government. However, in late April, plants had been started adhering to safety norms.
HEG is amongst the only two electrodes manufacturers in India with its manufacturing facility with a capacity of 80,000 tonne in Mandideep, MP. The company manufactures two grades of electrodes, UHP (Ultra-high Power) and HP (High Power).
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