HIL surges 10%, hits 52-week high on strong September quarter numbers

Shares of HIL moved higher by 10 per cent to Rs 1,975, also its 52-week high on the BSE on Wednesday after the company reported 63 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 49 crore in September quarter (Q2FY21), on the back of the healthy volume and operational performance. The cement and cement products maker had a profit of Rs 30 crore in the year-ago quarter.

Revenue during the quarter grew 21 per cent at Rs 704 crore against Rs 575 crore in the corresponding quarter of the previous fiscal. EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins improved 410 basis points to 14 per cent in Q2FY21 from 10 per cent in Q2FY20.

The management said healthy performance by roofing solutions as the revival in demand was led by robust rural demand. The building solutions witnessed better quarter-on-quarter (Q-o-Q) performance but continue witnessing headwinds of a prolonged real estate slowdown, it said.

The company said despite being a seasonally weak quarter, continue to manufacture roofing solution products at a high-capacity utilisation of 74 per cent as demand continues to be encouraging. There have been marked improvements in capacity utilisations across our business verticals, it said.

With a healthy monsoon and several enabling initiatives aimed at the rural segment, the management is looking at a continuance of similar performance trends in the coming quarters.

At 02:59 pm, the stock was trading 8 per cent higher at Rs 1,943 on the BSE, against a 0.8 per cent gain in the S&P BSE Sensex. A combined 175,000 equity shares changed hands on the counter on the NSE and BSE.