HEG shares slip 8% as Q4 profit declines 23%

Shares of graphite electrode manufacturer HEG Ltd fell up to 8% today after the firm reported a 23% fall in profit for the quarter ended March 2023.  HEG stock opened with a loss of 7.31% at Rs 1169.85 today. Later, the stock slipped up to 7.84% to Rs 1163.20 against the previous close of Rs 1262.10 on BSE. HEG stock has gained 13.33% this year and risen 9% in the last one year. Total 0.69 lakh shares of the firm changed hands amounting to a turnover of Rs 8.16 crore on BSE. Market cap of HEG fell to Rs 4512.59 crore. The stock closed 7.36% lower at Rs 1169.20 on BSE.  

In terms of technicals, the relative strength index (RSI) of HEG stands at 73.8, signaling it's trading the overbought zone. HEG stock has a one-year beta of 1.2, indicating high volatility during the period.  HEG shares trade higher than the 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.  

 Net profit fell 23 percent year-on-year to Rs 99.72 crore for the March FY23 quarter, affected by lower topline and operating numbers. 

Revenue from operations in Q4 fell by 8.3 percent to Rs 616.88 crore compared to the corresponding period last fiscal. The company announced a final dividend of Rs 42.50 per share. 

 In the last fiscal, sales zoomed 12.07% to Rs 2467.24 crore against Rs 2201 crore in the previous fiscal. Profit climbed 23.50% to Rs 532.36 crore in FY23 against Rs 431.05 crore in the previous fiscal. 

“HEG reported a subdued operational performance for Q4FY23 wherein on account of higher-than-expected raw material costs, standalone EBITDA margin declined both QoQ as well as YoY,” ICICIdirect said in a note. 

The board of HEG also cleared more investment of up to Rs 90 crore in one or more tranches, in its subsidiary TACC. 

Also read: Ashok Leyland Q4 results: Profit drops 17% to Rs 751 crore; firm declares Rs 2.60 dividend