HEG Ltd was locked at the 5% UC the moment it opened for trading at Rs.1840.75, a new high.
The company has posted an excellent set of numbers for Q2FY18. It was a turnaround with a net profit of Rs.114 crore v/s loss of Rs.14 crore (YoY) and had actually ended FY17 with a loss of Rs.50crore.
This was on the back of a very robust topline which doubled up from Rs.194 crore to Rs.410 crore. Operating profit jumped up over 9 times to Rs.189 crore and margins were up more than 5 times at 46.3% v/s 9.5%.
The reason for this astounding performance is the turnaround in the graphite industry itself as volumes as well as prices of graphite electrodes are on the surge. China shutting down some of its steel and electrode capacities to bring down pollution levels has led to more steel now being made in other electric arc furnace countries.