Opinion

Message from Chairman

Dear Colleagues

Welcome to the new financial year. This being the first issue of the newsletter this year, I would like to share some of my thoughts about stellar performance by HEG Ltd. and the ongoing concerns at the global level.

At Present

HEG Ltd is one of India’s leading graphite electrode manufacturer. The growth and progress has given the company a huge push towards maintaining quality standards and delivering as per expectations. HEG’s average fund-based working capital limit utilisation was about 65% for the 12 months ending March 2018. It is estimated that HEG will generate strong free cash flow over FY18-FY19 to continue supporting the liquidity.

Challenge

In addition to fixing financial markets, it is equally important to sustain momentum on increasing financial inclusion, improving financial literacy, and strengthening consumer protection.

India has enormous growth potential. To unlock this potential and to maintain an upward growth trajectory, it is crucial that the government pursue financial market development and reforms.

It is clear what needs to be done - what is needed now is a strong political will to push through the unfinished reform agenda aggressively and rapidly.

Looking Ahead

In the coming financial year, what can we expect? As global economic activity continues to strengthen, global growth is forecast to grow by 3.9% during 2018 as per the International Monetary Fund’s (IMF) January 2018 World Economic Outlook. The IMF expects India to grow at 7.4% during 2018 which could increase further to 7.8% during 2019 in contrast to 6.7% during 2017.

I think everyone should be prepared for all eventualities. Because the other side of this, of course, is that if the unexpected happens--trade war clouds disappear--that will give a big boost to the global economy. You should be prepared for that too.

Be happy, work hard and reap the results of your hard work.

With best wishes,

Ravi Jhunjhunwala