HEG shares hit 52-week high, rise 16% intra day on Q1 earnings

HEG shares climbed over 16% today on the back of robust first-quarter results. The company reported a significant rise in its margins. Revenues from operations climbed 8% to Rs 616.93 crore from the previous year's ₹571.5 crore. A marked improvement in margins, which expanded to 17.1% from 6.8% last year, was noted.

The growth was achieved despite a 14% fall in other expenses, which stood at ₹128.4 crore. HEG also benefited from a market-to-market gain on investments this year, contrasting with a loss in the same period last year. These gains have been instrumental in boosting the company's financial health, providing a solid foundation for future growth initiatives.

The company's net profit saw a stellar 355% rally, reaching ₹104.8 crore compared to ₹23.04 crore a year prior. Finance costs were slightly lower, declining 3% to ₹8.18 crore, while other income, which includes gains from investments, surged by 227% to ₹66.9 crore. HEG's earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 172% to ₹105 crore. The company announced a 15 kiloton capacity expansion with a capital expenditure of ₹650 crore, to be financed through internal accruals and debt if needed. This expansion is expected to enhance production capabilities significantly, aligning with the company's strategic goals.

HEG shares ended 7.34% higher at Rs 573, reflecting a 12.37% gain over the last month. The company plans to enhance its existing 100 kt capacity, which is currently utilised at 85% to 90%. The expansion aligns with the company's strategic growth initiatives and improved financial performance. As the company continues to strengthen its market position, these developments are likely to attract more investor interest, further driving the stock's positive momentum.