HEG’s capex plan is delayed but on track, said Manish Gulati, ED of the company.

“There is no plan for dividend or buyback as of now. We are waiting for things to turnaround,” he told CNBC-TV18.

According to him, the fundamentals of graphite electrode market remain intact.

“Electric arc furnace steel is the way to go. Its green steel, low carbon dioxide emissions. You will not hear a new blast furnace coming, but you will always hear some new electric arc furnace coming up in the world. So we think that once this COVID situation corrects, there should be revival in demand,” he said.

On capacity utilisation, Gulati said, “The Q1 capacity utilisation was at 50 percent which increased to 70 percent in Q2.” He expects to maintain capacity utilisation of 70 percent in Q3 and Q4.

For entire interview, watch video