Heidelbergcement India declines on weak Q1 results

Heidelbergcement India fell 2.67% to Rs 176.50 after standalone net profit tumbled 38.1% to Rs 48.94 crore on 30.2% decline in net sales to Rs 406.27 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) slumped 38.8% to Rs 74.49 crore in Q1 FY21 as against Rs 121.81 crore in Q1 FY20. Current tax expense for the quarter skid 50.4% at Rs 13.04 crore as against Rs 26.28 crore in Q1 FY20. The Q1 earnings were announced after market hours yesterday, 22 July 2020.

EBITDA declined 31.3% to Rs 108.30 crore in Q1 FY21 as against Rs 157.70 crore in Q1 FY20. EBITDA margin stood at 26.7% in Q1 FY21 as against 27.1% in Q1 FY20.

Sales volume slipped 31.9% to 857 kilo tonne (KT) in Q1 FY21 as against 1,258 kilo tonne (KT) in Q1 FY20, primarily driven by the suspension of operations in April 2020. The decrease in volume impacted revenue and profitability during the quarter.

On a per tonne basis, gross realization rose 2.4% whereas total operating cost (incl. freight) rose 1.8% resulting in EBITDA of Rs 1,264 per tonne as compared to Rs 1,253 per tonne in Q1 FY20. Concerted efforts supported the company optimize its fixed cost, however, decrease in volume negatively impacted the operating leverage. On a per tonne basis, increased fixed cost is partially offset by lower raw materials and power & fuel costs. The firm's net cash increased to Rs 160 crore as at 30 June 2020.

Heidelbergcement India suspended manufacturing operations in its plants in the last week of March 2020. The operations were resumed in a phased manner with effect from 20 April 2020 under strict observance of guidelines issued by respective district administrations to mitigate the risk of COVID-19. The suspension of operations, together with intermittent restrictions impacted the financial performance of the firm during the quarter ending 30 June 2020.

HeidelbergCement India is a subsidiary of HeidelbergCement AG, Germany. The company operates in central India in Damoh (Madhya Pradesh) and Jhansi (Uttar Pradesh) and in southern India in Ammasandra (Karnataka).

Powered by Capital Market - Live News