HeidelburgCement Hits Record Bottomline Figures

HeidelbergCement India, formerly known as Mysore Cements, has posted good set of numbers for Q1CY14 with the help of volume growth, cost optimisation and by the sell-off, of its cement grinding facility in Raigad, Maharashtra. 
The company’s topline grew by 8.8% to Rs 402.1 crore in Q1CY14 against Rs 370.4 crore in Q1CY13 and the sales volume also showed similar growth and went up by 8% to 1.02 MT in the said quarter. EBITDA of the company recorded sharp increase in its number and shoot up by 81% yoy to Rs 67.8 crore in Q1CY14 against Rs 37.4 crore in same period last year. 

The rapid increase in EBITDA of the company was mainly due to decrease in major expenses of the company during the quarter. Cost of material of the company came down to 21% of total operating income during Q1CY14 from 28.4% in corresponding quarter of previous year. Further freight & forwarding cost of the company showed improvement and came down to 13.4% of operating revenue against 16% in Q1CY13. Moreover power and fuel expenses recorded marginal improvement and reached to 29.6% of total operating income in the said quarter against 30.2% in same period last year. 

Cost optimisation during Q1CY14 resulted in better profitability for the company. EBITDA margin of the company surged to 16.8% during the said period where it was 10% in Q1FY13. 

Bottomline of the company registered exponential growth during the said quarter and reached to Rs 47.8 crore against Rs 2.2 crore in Q1CY14 despite of exponential growth in finance cost and tax. Finance cost of the company surged by 97% to Rs 27 crore in Q1CY14 against Rs 13.7 crore in Q1CY13. Moreover tax expenditure increased by 537% to Rs 28.8 crore in the said quarter. 

The company was able to record positive bottomline due to selling of the cement grinding facility in Raigad, Maharashtra to JSW steel. From the above mentioned transaction the company received capital gain of Rs 63.1 crore during Q1CY14.
If we exclude the impact of Raigad disposal, its EBT will be increased by 359% to Rs 24.2 crore in Q1CY14 from Rs 6.7 crore in corresponding quarter of previous year. Moreover its sale volume would have been increased by 29% and EBITDA would have surged by 114% during the said quarter.  

After announcement of result the company witnessed sharp increase in its stock price and went up by 12.73% over its previous close to Rs. 46.95 per share.