HEG shares plunge 8% as Q1 earnings take a hit; company announces 1:5 stock split

HEG has reported a sharp 83.4% decline in its net profit to ₹23 crore in Q1 FY25 against ₹139 crore in the year-ago period.

The company’s sales slipped 14.9% to nearly ₹571.5 crore in the June quarter, compared to ₹671.4 crore a year ago.

At the operating level, HEG’s earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 73% year-on-year to ₹38 crore during the quarter under review. EBITDA margins slipped to 6.7% in Q1 FY25 from 21% in Q1 FY24.

HEG also announced a stock split in the ratio of 1:5 to make its share price more affordable for retail investors.

The company said that its board of directors approved a sub-division of each equity share with a face value of ₹10 each into five equity shares with a face value of ₹2 each. HEG said in the stock exchange notification that the record date for the split of existing equity shares will be intimated in due course.

After the announcement, the scrip lost as much as 8.3% on Wednesday to hit an intra-day low of ₹1,990 on the National Stock Exchange of India (NSE). The stock has been down nearly 17% in the past year, compared with a 24% rise in the benchmark Nifty 50 during the same period.

At 11:30 am, shares of HEG Limited traded 7.16% lower at ₹2014.4 a piece on NSE.

HEG Ltd owns one of the largest integrated graphite electrode plants globally, processing sophisticated UHP (Ultra high power) electrodes. The company exports over 70% of its production to more than 30 countries.