HEG soars as Q1 operating profit doubles

Q1 operating profit more than doubleed to Rs 106 crore

HEG Limited has soared 11% to Rs 226 after the company said its operating profit before exceptional items more than double to Rs 106 crore for the quarter ended June 30, 2012. The company had reported operating profit of Rs 44 crore in previous year quarter

Net profit grew 17% at Rs 23.2 crore, on back of 38% rise in net sales at Rs 384 crore on year-on-year basis.

“In Q1 FY2013, there was a forex loss of Rs 48.4 crore attributable to forex losses on account of hedging positions taken and forex fluctuations on borrowings,” the LNJ Bhilwara Group firm said in a filing.

 

“Overall, the company’s operations during the quarter have improved with good volumes and favorable exchange rates. Continued efforts towards optimizing our operations have resulted in robust capacity utilization rates over the long run and we expect to set the benchmark and better the industry in this aspect going forward,” said Ravi Jhunjhunwala, chairman and managing director, HEG Limited.

The stock opened at Rs 211 and hit a high of Rs 234 on the NSE. A combined 142,472 shares have already changed hands on the counter so far, against an average of less than 50,000 shares that were traded daily in past two weeks.