Shares of HEG Ltd plunged over 5% to ₹502.15 in early trade on Tuesday, following the company’s disappointing Q4 FY25 results announced post market hours on Monday. This comes just a day after the stock had rallied nearly 10% on news that Japanese graphite electrode producer Resonac had shut down its operations in China and Malaysia — a move expected to tighten global supply and support pricing.
HEG reported a consolidated net loss of ₹73.7 crore for the quarter ended March 31, 2025, a sharp reversal from a profit of ₹32.9 crore in the same period last year. Revenue from operations fell marginally by 0.8% year-on-year to ₹542.3 crore from ₹546.9 crore. Operating performance also took a significant hit, with the company reporting an EBITDA loss of ₹55.4 crore compared to an EBITDA profit of ₹42.7 crore in the year-ago period.
The sharp decline in profitability, despite positive industry cues, has triggered profit-booking in the counter. On Monday, the stock had surged on supply disruption news from Resonac — which accounts for a major share of global graphite electrode production. The shutdown of its Chinese and Malaysian plants is estimated to reduce up to one-third of its capacity, expected to ease pricing pressure on competitors like HEG.
However, the market’s initial optimism was tempered by HEG’s weak quarterly performance, leading to today’s correction. As of 9:45 AM, HEG shares were trading at ₹502.15, down ₹26.55 or 5.02% from the previous close.
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