HEG Q2 results: PAT up 90% YoY but revenue dips 39%; GST show cause notice of 565 cr
HEG · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 2.4 pts more than Nifty Smallcap 250 and 2.5 pts more than its Electrodes & Refractories peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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HEG posted Q2 standalone revenue of Rs 696.85 cr, down from Rs 1,139.06 cr YoY. PAT rose 90% to Rs 162.89 cr, lifted by fair value gains on Graftech stake. H1 PAT came in at Rs 255.31 cr. Board approved subscribing to Rs 633 cr OCDs of wholly owned unit TACC and sale of 26% stake in Texnere India. Received GST show cause notices for FY20 and FY21 seeking Rs 282.34 cr IGST refund recovery for each year, totaling about Rs 565 cr. Company says the refunds were valid and the notices will be dropped.
Strong PAT driven by investment mark-to-market gains masks weak core revenue. GST notices of 565 cr pose a risk though company contests them.