India Ratings & Research (Ind-Ra) has affirmed HEG's long-term issuer rating at 'A+'. The outlook is stable.

EBITDA margins improved to 14.7% in FY13 (year end March) from 10.5% in FY12 due to lower forex losses of R 552 million (Rs 928.5 million). During FY12, HEG made forward sales of US dollars expecting rupee appreciation. However, rupee depreciated further resulting in exceptional forex losses. The margins remained stable at 14.6% for 9MFY14 (9MFY13: 14.1%).

HEG revenue grew 13.9% yoy to Rs 16,226 million in FY13 due to a 16% increase in revenue per tonne. However, the revenue declined 18% yoy to Rs 9,654 million in 9MFY14 due to lower sales volumes in 1HFY14. Graphite electrode is a consumable component for steel making using an electric arc furnace, which is the predominant route of steel making in middle-east and western economies. The slowdown in western economies resulted in muted revenue growth for the graphite electrode industry in the last few years. However, Europe and America are showing signs of revival in economic growth which could recover demand for graphite electrode in the short-to-medium term. HEG exports to Europe and America contributed 39% to revenue in FY13 (FY12: 33%).

Shares of the company gained Rs 1, or 0.5%, to trade at Rs 202. The total volume of shares traded was 683 at the BSE (12.27 p.m., Thursday).