Heidelberg Cement India Ltd. share price target

Heidelberg Cement reported a good set of Q1FY19 numbers. Revenues increased 24.4% YoY to | 536.9 crore (above I-direct estimate of | 479.9 crore) led by 15.2% YoY rise in volumes to 1.27 MT (vs. I-direct estimate of 1.16 MT) while realisation increased 8.0% YoY to | 4,237/t (vs. I-direct estimate of | 4,137/t) On the margin front, the EBITDA margin increased 829 bps YoY to 21.6% (vs. I-direct estimate of 16.1%) in Q1FY19 mainly led by operating leverage benefit. EBITDA/tonne increased 75.3% YoY to...

Strong Performance on Better Realisations & Cost-Optimisation Measures HeidelbergCement India (HCIL) has reported a better-than-estimated operating performance in 4QFY18 mainly led by higher-than-anticipated jump in average realisation and cost benefits. Reported EBITDA stood at Rs1.14bn (vs. our estimate of Rs846mn). EBITDA/tonne stood at Rs900 vs. Rs580 and Rs620 in 4QFY17 and 3QFY18, respectively. Average realisation grew by 10% YoY and 4% QoQ to Rs4,137 aided by premium products and FOB pricing. Operational cost/tonne stood to Rs3,237 (+2% YoY and -3.5% QoQ). While RM + Power & Fuel cost/tonne declined by 2.5% YoY and 6.7% QoQ to Rs1,698 mainly supported by higher utilisation, WHRS benefits and cost...

Heidelberg Cement reported a good set of Q4FY18 numbers. Revenues increased 15.8% YoY to | 525.4 crore (above I-direct estimate of | 506.9 crore) led by 5.0% YoY rise in volumes to 1.27 MT (vs. I-direct estimate of 1.25 MT) while realisation increased 10.3% YoY to | 4,137/t (vs. I-direct estimate of | 4,055/t) On the margin front, the EBITDA margin increased 629 bps YoY to 21.7% (vs. I-direct estimate of 17.1%) in Q4FY18 mainly led by 9.2% YoY decline in raw material expenses (due to inventory adjustment)...

ICICI Securities Ltd | Retail Equity Research Heidelberg Cement's results were broadly above our estimates. Revenues increased 24.8% YoY to | 483.9 crore (above I-direct estimate of | 442.8 crore) led by 16.5% YoY rise in volumes to 1.2 MT (vs. I-direct estimate of 1.1 MT) driven by resolution of sand mining issue and higher infra spending. Further, realisation increased 7.1% YoY at | 3,976/t (vs. I-direct estimate of | 4,062/t) On the margin front, the EBITDA margin increased 550 bps YoY to...

Strong Performance on Healthy NCR and Cost Benefits HeidelbergCement India (HCIL) has reported a strong performance in 2QFY18 amid challenging environment primarily led by better-than-expected NCR, cost benefits and one-time reversal (Rs57mn) of provisioning towards DMF for the prior period. Reported EBITDA surged by 46% YoY and 52% QoQ to Rs874mn surpassing our estimate. EBITDA/tonne stood at strong Rs825 vs. Rs599 and Rs522 in 2QFY17 and 1QFY18, respectively. While Power & Fuel cost/tonne increased by 8% QoQ, an improvement in Power & Fuel consumption resulted in low cost on yearly comparison (-4% YoY) despite a sharp surge in petcoke prices (usage up to 70%). Operating...

Heidelberg Cement reported a good set of numbers. Revenues increased 9.3% YoY to | 420.0 crore (above I-direct estimate of | 384.4 crore) led by 6.0% YoY rise in volumes to 1.06 MT (vs. Idirect estimate of 0.99 MT) and realisation increased 3.1% YoY to | 3,962 (vs I-direct estimate of | 3,883) On the margin front, the EBITDA margin increased 524 bps YoY to 20.8% (vs. I-direct estimate of 12.9%) in Q2FY18 mainly led by 11.6% YoY decline in other expenses (driven by one-time reversal of | 5.7 crore provision made for district mineral fund). EBITDA/tonne...

Low Volume & Cost Pressure Drag Operating Performance Dismal sales volume and higher operational cost due to higher fuel and incremental maintenance cost (Rs90mn) impacted HCIL's operational performance. Thus, EBITDA de-grew by 28% YoY and 18% QoQ to Rs575mn. EBITDA/tonne stood at Rs522 in 1QFY18 compared to Rs655 and Rs580 in 1QFY17 and 4QFY17, respectively. Going forward, we expect operating performance to improve on the back of firm realisation, no further maintenance cost in FY18 and improving utilisation. PAT...

ICICI Securities Ltd | Retail Equity Research Heidelberg Cement reported a weak set of Q1FY18 numbers. Revenues (excluding excise) declined 6.6% YoY to | 431.4 crore (below I-direct estimate of | 505.6 crore) led by 9.8% YoY fall in volumes to 1.1 MT (vs. I-direct estimate of 1.3 MT). Shortage of sand and aggregates in Uttar Pradesh led the company to report lower sales volume during the quarter while realisation increased 3.6% YoY at | 3,922 (vs. I-direct estimate of | 3,950)...

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....

ICICI Securities Ltd | Retail Equity Research Heidelberg Cement's results were above our expectations mainly due to higher-than-expected topline. Revenues (excluding excise) increased 14.3% YoY to | 453.8 crore led by 9.0% YoY increase in volumes to 1.2 MT (vs. I-direct estimate of 0.98 MT) while realisation increased 4.8% YoY at | 3,750 (vs. I-direct estimate of | 3,678) EBITDA margin declined 74.0 bps YoY to 15.5% in Q4FY17 mainly led by a rise in employee expenses (up 10.4% YoY) and higher...