HeidelbergCement India, a subsidiary of the German multinational Heidelberg Materials, has reported a remarkable financial performance for the second quarter. The company's net profit soared by 122% year-on-year, reaching Rs 24.93 crore, up from Rs 11.21 crore in the same quarter last year.

Key Financial Highlights

Revenue and Volume Growth

The company's revenue from operations witnessed a healthy growth of 10.9%, climbing to Rs 511.66 crore from Rs 461.41 crore in the corresponding quarter of the previous year. This growth was primarily driven by:

1. A 9.2% increase in sales volumes
2. Improved pricing

HeidelbergCement India's sales volume increased to reach 1,075 kilo tonnes, reflecting strong demand in the market.

Operational Efficiency

HeidelbergCement India managed to improve its operational efficiency:

• Operating costs per tonne declined by 2%
• EBITDA per tonne surged by 41% year-on-year to Rs 535

This improvement in operational metrics underscores the company's focus on cost management and operational excellence.

Expense Management

While the company's total expenses rose by 6.14% to Rs 487.15 crore, it's important to note that this increase was lower than the revenue growth rate. This indicates effective cost control measures implemented by the management.

Market Position

As a subsidiary of Heidelberg Materials, HeidelbergCement India continues to leverage its parent company's global expertise in the building materials sector. The strong performance in this quarter reinforces the company's position in the Indian cement market.

HeidelbergCement India's impressive Q2 results demonstrate its resilience and ability to capitalize on market opportunities while maintaining operational efficiency. The substantial growth in net profit, coupled with increased sales volumes and improved pricing, positions the company well in the competitive Indian cement industry.

HeidelbergCement India Limited , a prominent player in the Indian cement industry, has announced robust financial results for the quarter ended June 30, showcasing significant growth and progress in sustainability efforts.

Financial Highlights

The company reported a substantial 20.9% year-on-year increase in net profit, reaching ₹482.30 crore for the quarter. This impressive growth was primarily driven by a 12.3% rise in revenue, which stood at ₹5,975.40 crore, up from ₹5,322.00 crore in the same quarter of the previous year.

HeidelbergCement India's performance was marked by strong volume growth and improved realizations. Sales volumes surged by 10.9% to 1,254 KT, while the company achieved a modest 1% improvement in pricing.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a healthy growth of 13.4%, reaching ₹885.00 crore, compared to ₹780.00 crore in the corresponding quarter last year. The EBITDA margin slightly improved to 14.8% from 14.7%, indicating stable operational efficiency.

On a per-tonne basis, EBITDA increased by 2.3% to ₹706, despite a 1% rise in total operating costs, including freight. This cost increase was primarily attributed to higher raw material prices, but was partially offset by improved pricing strategies.

Key Financial Metrics

Sustainability Initiatives

HeidelbergCement India has made significant strides in its sustainability agenda during the quarter. The company initiated receiving wind-solar hybrid power under its second long-term power purchase agreement, covering both its clinker manufacturing facility at Narsingarh and the grinding unit at Imlai. This strategic move has increased the share of non-grid power to over 50% of total consumption, marking a significant milestone in the company's energy transition journey.

Further reinforcing its commitment to decarbonization and circular economy practices, HeidelbergCement India increased the share of alternate fuels in its energy mix to approximately 13%.

Financial Position

As of June 30, the company maintained a strong financial position with cash and bank balances of ₹5,704.00 million, against interest-free borrowings of ₹687.00 million, indicating a robust liquidity position.

Management Commentary

Joydeep Mukherjee, Managing Director of HeidelbergCement India Limited, stated, "Our results reflect strong growth in both volumes and profitability. We are particularly pleased with the progress in our sustainability initiatives, which are crucial for our long-term success and environmental responsibility."

HeidelbergCement India's impressive performance, coupled with its advancements in sustainable practices, positions the company well for continued growth in the Indian cement market. The focus on operational efficiency and environmental sustainability appears to be yielding positive results, both financially and ecologically.