Heidelberg Cement India Ltd. share price target

HCILs financial metrics has drastically improved over the years due to an increase in...

Heidelberg Cement reported strong Q1FY20 results with volumes displaying resilience to soft demand. Revenues increased 8.5% to | 582.4 crore (above I-direct estimates of | 510 crore) contributed entirely by realisations growing 9.3% YoY to | 4630/t. While we expected volumes to decline to 1.14 MT. They broadly remained flat at 1.26 MT. The company clocked an EBITDA/t of | 1200/t for the quarter (vs. I-direct estimate of | 848/t) while margins expanded 430 bps YoY to 25.9% on the back of strong realisations. EBITDA witnessed 30% YoY growth to ~| 151 crore (above I-direct estimate of...

up 6.6% YoY. Despite hardening of fuel prices, company managed to contain costs led by optimisation of logistics, rationalizing employee cost, other fixed overheads and higher power generation from Waste Heat Recovery System...

Sector: Cement/small cap | Earnings Update 4QFY19 Background: Heidelberg Cements (HCIL), erstwhile Mysore Cements set up by Birla group in 1958 is now a subsidiary of Heidelberg AG, the world's third largest cement manufacturer. The company manufactures portland cement through its three plants located at Ammasandra, Karnataka (0.6 MTPA), Damoh, Madhya Pradesh...

Capacity bottlenecks to be addressed for short-term only For FY19, Heidelberg clocked volume growth of 5.4% YoY to 4.9 MT and ended the year with capacity utilisation of 91%, thereby leaving very low room for growth. Since the clinker unit operated at 85% utilisation, the company would be undertaking expansion of its grinding capacity at Damoh unit in MP by 0.5 MT going ahead. This would provide the company with some room to grow in volume terms but concerns on growth in the longer term would remain unless a new project is announced. Hence, we model a...

Strong Demand in Central region and better operational efficiency hasaided company performance: The topline of the company was up by 15% onYoY basis, i.e. from Rs. 5639 Mn in Q3FY19 as compared to Rs. 4912 Mn in Q3FY18. EBITDA of the company stood at Rs. 1225 Mn as compared Rs. 828 Mn in Q3FY18.

ICICI Securities Ltd | Retail Equity Research Heidelberg Cement reported a strong set of Q3FY19 numbers, beating our estimates on all fronts. Revenues increased 15.4% YoY to | 558.4 crore (above I-direct estimate of | 539.8 crore) led by a 6.3% rise in volumes and 8.5% growth in realisations The EBITDA margin increased 537 bps YoY to 21% (vs. I-direct estimate: 20.5%) mainly led by healthy realisations. EBITDA/tonne increased 46% YoY to | 905/t (vs. I-direct estimate of | 870/t)...

Heidelberg Cement reported good set of numbers for Q2FY19. Revenues increased 14.2% YoY to |479.5 crore mainly led by healthy growth in the realisations that were up by 7.6% YoY to |4,262/t (vs Idirect est: |4,120/t). Capacity utilisation also remained healthy at 83% due to pick-up in demand despite lean monsoon season. On the margin front, the EBITDA margin increased 218 bps YoY to 23% (vs I-direct est:16.5%) mainly led by the strong realisations. Company reported highest ever EBITDA/tonne of |980/t (vs I-direct estimate of | 681/t) as it was also able to reduce the effect of...

Sector: Cement/small cap | Earnings Update 1QFY19 Background: Heidelberg Cements (HCIL), erstwhile Mysore Cements set up by Birla group in 1958 is now a subsidiary of Heidelberg AG, the world's third largest cement manufacturer. The company manufactures portland cement through its three plants located at Ammasandra, Karnataka (0.6 MTPA), Damoh, Madhya Pradesh (2.1 MTPA) and Jhansi, Uttar Pradesh (2.7 MTPA). The company also caters to Bangalore, Mumbai and Pune apart from MP and UP. The company has increased its...