HeidelbergCement India Ltd's Q3FY19 standalone net profit rises 84.4% yoy to Rs58.6cr: Beats Estimates

The company’s standalone revenue in the quarter stood at Rs563.9cr, up 14.8% yoy and 16.1% qoq.

Feb 12, 2019 04:02 IST India Infoline Research Team

HeidelbergCement India Ltd Q3FY19

Standalone Results Q3FY19: (in Rs cr)

Q3FY19 YoY (%)
Revenue 563.9 14.8
EBITDA 122.5 47.9
EBITDA Margin (%) 21.7 487
Net Profit  58.6 84.4
***EBITDA margin change is bps
Heidelberg Cement reported a strong set of numbers for the quarter that were ahead of the estimates on operating fronts. Revenue grew 14.8% yoy to Rs563.9cr (~4% above estimates). Gross margin for the company expanded 121bps yoy primarily led by higher realizations. EBITDA jumped significantly by 47.9% yoy to Rs122.5cr (~11% above estimates). Led by gross margin expansion, lower freight costs, and lower other expenses as a percent of net sales, EBITDA margin expanded 487bps yoy to 21.7% (ahead of the estimates of 20.2%). Led by EBITDA growth and higher other income, PAT jumped 84.4% to Rs58.6cr (~16% above expectations).
  • Revenue growth for the quarter was driven by 6.3% yoy growth in volume (to 1.29MT, highest-ever quarterly volume recorded by the company) coupled with 8% yoy growth in realizations (to Rs4,357.8/ton).
  • Strong volume growth was led by the pick-up in construction activities in most parts of Central India.
  • Raw material per ton increased marginally by 2.6% yoy to Rs1,017/ton. Employee cost per ton was down 13.1% yoy to Rs206/ton.
  • Hardening of fuel price was partially offset by power generation from Waste Heat Recovery System (WHRS) and economic power sourcing during the quarter, thus, restricting the increase in power cost per ton to Rs928/ton, up 12% yoy.
  • Thus, the company reported EBITDA per ton of Rs947/tn, a 39% yoy jump.
  • The company announced the completion of Phase-I of its de-bottlenecking project during the quarter.

Technical View:

HeidelbergCement India Ltd ended at Rs147, up 4.75 points, or 3.34%, from its previous close of Rs142.25 on the BSE. The scrip opened at Rs143.80 and touched a high and low of Rs150.95 and Rs143.20, respectively. A total of 6,29,245 (NSE+BSE) shares were traded on the counter. The stock traded above its 50-DMA.

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