HEG shares slip 7% in early deals on Q1 earnings, stock split

Shares of HEG Ltd fell over 7% in early deals today after the graphite electrode maker reported its Q1 earnings. The firm also announced a stock split in the ratio of 1:5. HEG shares slipped 7.21% to Rs 2011 on Wednesday against the previous close of Rs 2167.40 in the previous session. Market cap of the firm fell to Rs 7801 crore on BSE. 

Net profit fell 84.43% to Rs 23.04 crore in the June 2024 quarter against profit of Rs 139.12 crore in   the June 2023 quarter. Revenue slipped 15% to Rs 571.46 crore in the last quarter against Rs 671.43 crore in Q1 of the previous fiscal. 

Earnings per share slipped to Rs 5.97 in Q1 against Rs 36.05 in the corresponding quarter of the last fiscal.  

"Sub-division/ split of each equity share of face value of Rs 10/- (Rupees Ten only) each, fully
paid-up into 5 (Five) equity shares of face value of Rs 2/- (Rupee Two only) each, fully paidup by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the Company to be sought tlu·ough Postal Ballot. The Record Date for sub-division/ split of existing equity shares will be intimated in due course," said the firm in a commuinication to bourses. 

HEG is a manufacturer of graphite electrodes, which are used as a raw material in steel production via the EAF route, significantly less polluting (three-fourths reduced emission) vs. the more traditional blast furnace or BF route.