HEG Ltd.

NSE: HEG | BSE: 509631 | ISIN: INE545A01016 |Industry: Other Industrial Goods
|Value Stock, Under Radar

HEG Ltd.    
14 Feb 2020
999.85
-2.12%
Earnings Call Transcript - Q3FY20 for HEG Limited

Full Earnings Call Transcript (Audio) for HEG Limited - Q3FY20

To listen, click on the youtube link.

Highlights

  • Total world crude steel production was at 3.4%. Without China growth was -1.75% last year. China produces 53% of all steel in the world. 
  • Slowdown in demand and tensions between US and China led to overall decline. Iran sanctions blocked HEG's participation in Iran's steel production. 
  • HEG has seen less buying in the last few quarters. Buying cycles are long, from 6-32 weeks.
  • Input coke is imported and there is substantial coke in stock. Still keep consuming high-priced coke despite changes in demand and prices of electrodes. 
  • Customers overbought in 2018 and first half of 2019. Now demand has plateaued, resulting in the drop in HEG numbers. 
  • Pursuing expansion of 20,000 tonnes which should be operational in 2022. This will give HEG an advantage in costs, and management believes by then the market will have stabilized. 
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