HEG Share Price Jumps Nearly 12% After Strong Q1 Results

Market Performance

HEG share price witnessed a sharp rally on Thursday, July 31, surging by 11.91% to trade at ₹597.9 around 12 PM.

The stock has gained 17.11% over the past month, reflecting positive investor sentiment following the latest quarterly results.

Main News

HEG Ltd. posted robust numbers in its Q1 FY25 earnings, propelling a double-digit jump in its stock price.

The strong growth in profitability and margin expansion were key contributors to the upward movement in HEG share price.

Company Details

HEG Ltd., a leading graphite electrode manufacturer, announced a 15 kt capacity expansion, taking the total to 115 kt from the current 100 kt base.

• Capital Expenditure: ₹650 crore
• Current Utilisation: 85–90%
• Financing Mode: Internal accruals and debt (if needed)

Financial Highlights of HEG Q1 Results

Revenue

• Revenue from operations stood at ₹616.93 crore
• This marks an 8% YoY growth from ₹571.5 crore in Q1 last year

EBITDA

• EBITDA rose sharply by 172% YoY
• Q1 EBITDA stood at ₹105 crore, compared to ₹39 crore last year

EBITDA Margins

• EBITDA margins expanded significantly to 17.1%
• This is a notable rise from 6.8% in the same quarter last year
• Excluding MTM losses, margins stood at 17.1% versus 11.6% last year

Net Profit

• Net profit jumped by 355% YoY
• Q1 Net profit came in at ₹104.8 crore
• Last year, it was ₹23.04 crore

Other Financial Metrics

• Other Income: ₹66.9 crore (up 227% from ₹20.44 crore)
• Finance Cost: ₹8.18 crore (down 3% from ₹8.47 crore)
• Other Expenses: ₹128.4 crore (down 14% YoY from ₹148.77 crore)

Notably, the other income includes mark-to-market (MTM) gains from investments, including HEG's holding in Graftech International Ltd., US.

Summary

HEG share price rose nearly 12% after the company reported a strong Q1 FY25 with stellar growth in revenue, profit, and margins.

Operational improvements, controlled expenses, and MTM gains were major drivers behind the positive financial performance.

The planned 15 kt capacity expansion and improved utilisation rates further reflect operational strength and future readiness.