HEG Ltd net profit up 157% to Rs.28.48 Crores

HEG Ltd has announced the Un-Audited financial results for the quarter ended June 30, 2007.

The Company has posted a profit after tax of Rs.284.8 million for the quarter ended June 30, 2007 as compared to Rs.110.8 million for the quarter ended June 30, 2006. Total Income has increased from Rs.1874.6 million for the quarter ended June 30, 2006 to Rs.2450.8 million for the quarter ended June 30, 2007.

The company has reported an Earnings Per Share (EPS) of Rs.7.07 in Quarter ending June 30, 2007 compared to Rs.2.75 during Quarter ending June 30, 2006.

The hydroelectric plant being seasonal did not operate in this quarter. However due to early onset of monsoon the operations has started earlier than previous year which would contribute to the results in remaining part of the year.

The company has restructured its operations to focus on its core business of Graphite Electrode, by entering into an arrangement with Jai Balaji Industries Ltd, Kolkata (JBIL) on July 10, 2007 to hive-off its steel unit (including sponge and WHRS) situated at Durg, Chattisgarh. This business will be transferred to JBIL w.e.f. August 01, 2007 subject to approval of the respective High Courts other regulatory authorities and necessary compliances. The Board has approved the draft Scheme of Arrangement and authorised a Committee set up by the Board to finalise this & also authorised the management for taking all necessary steps in the matter.

The stock closed the day at Rs.231.75, up by Rs.9.30 or 4.18%. The total traded quantity was 450194 compared to 2 week average of 314398. The stock hit an intraday high of Rs.243 and low of Rs.223.50.

Source : Equity Bulls

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