HeidelbergCement India Limited (HCIL) has announced strong financial results for the first quarter, demonstrating significant growth across key metrics.

Sales and Revenue Growth

The company reported an impressive 10.9% year-over-year increase in sales volumes, reaching 1,254 KT compared to 1,131 KT in the same quarter last year. This volume growth, coupled with a slight improvement in pricing, drove a 12.3% increase in revenue. HCIL's revenue for the quarter stood at ₹5,975.40 crore, up from ₹5,321.90 crore in the corresponding period.

Profitability Improvements

HeidelbergCement India's profitability showed notable improvements:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 13.4% to ₹885.00 crore, compared to ₹780.00 crore in the corresponding quarter of the previous year.
• EBITDA margin improved by 15 basis points to 14.8% from 14.7% year-over-year.
• Profit After Tax (PAT) grew significantly by 20.9% to ₹482.00 crore, up from ₹399.00 crore.

Operational Efficiency

The company's operational efficiency remained strong, with EBITDA per tonne increasing by 2.3% to ₹706.00, up from ₹690.00 in the same quarter last year. This improvement came despite a 1% rise in total operating costs per tonne, including freight, which was primarily driven by an increase in raw material prices.

Sustainability Initiatives

HeidelbergCement India made significant strides in its sustainability efforts:

• The company began receiving wind-solar hybrid power under its second long-term power purchase agreement, covering both the clinker manufacturing facility at Narsingarh and the grinding unit at Imlai.
• This initiative increased the share of non-grid power to over 50% of total consumption, marking a significant milestone in HCIL's energy transition journey.
• The company also increased the share of alternate fuels in its energy mix to approximately 13%, reinforcing its commitment to decarbonization and circular economy practices.

Financial Position

HeidelbergCement India maintained a strong financial position with a cash and bank balance of ₹5,704.00 crore, against interest-free borrowings of ₹687.00 crore.

Management Commentary

Joydeep Mukherjee, Managing Director of HeidelbergCement India Limited, commented on the results, stating, "Our Q1 performance demonstrates the resilience and strength of our business model. The significant growth in sales volumes and profitability reflects the increasing demand for our products and our ability to efficiently manage costs. We remain committed to our sustainability goals, as evidenced by our progress in adopting renewable energy and alternate fuels."

HeidelbergCement India's robust Q1 results reflect the company's strong market position and effective operational strategies, setting a positive tone for the period ahead.

HeidelbergCement India Limited , a prominent player in the Indian cement industry, has recently shared its strategic vision for the coming years, focusing on significant capital expenditure, sustainability initiatives, and aligning with India's economic growth trajectory.

Capital Expenditure and Growth Outlook

During a recent conference call, HeidelbergCement India outlined its plans for substantial capital expenditure over the next 3-4 years. This investment strategy underscores the company's commitment to expanding its operations and enhancing its market position in the rapidly growing Indian cement sector.

The company has set its growth guidance between 6.00% and 7.00%, a target that aligns closely with the projected growth rates for both the cement industry and India's GDP. This strategic alignment positions HeidelbergCement to capitalize on the country's ongoing infrastructure development and construction boom.

Sustainability Initiatives

In a notable move towards sustainability, HeidelbergCement India has announced plans to increase its green power capacity. The company anticipates a 2.00% to 3.00% rise in green power utilization by the financial year 2026. This projection follows a recent agreement for a 5.50 megawatt green power project, demonstrating the company's commitment to reducing its carbon footprint and embracing cleaner energy sources.

Industry Outlook

HeidelbergCement's growth projections and investment plans reflect a positive outlook for the Indian cement industry. With the country's focus on infrastructure development and urban expansion, the demand for cement is expected to remain robust in the coming years.

The company's strategy to invest in capacity expansion and sustainable practices indicates its readiness to meet the growing market demand while also addressing environmental concerns. This balanced approach could potentially strengthen HeidelbergCement's competitive position in the Indian market.

As HeidelbergCement India moves forward with its plans, stakeholders will be keenly watching how these initiatives translate into market performance and environmental impact in the dynamic Indian cement sector.