HeidelbergCement India Limited has received two significant orders from GST authorities demanding recovery of ₹32.77 crores for alleged tax violations spanning multiple financial years. The company disclosed these developments to stock exchanges on December 29, under regulatory compliance requirements.

GST Authority Orders Details

The Additional Commissioner, CGST and Central Excise, Jabalpur issued two separate orders targeting different financial years and violations:

Breakdown of Alleged Violations

The first order addresses two specific issues from FY 2021-22:

1. Recovery of ₹1.90 crores for excess Input Tax Credit (ITC) availed and utilized, with a penalty of ₹19.05 lakhs and applicable interest.
2. Recovery of ₹13.01 crores for alleged non-payment of GST, with a penalty of ₹1.30 crores and interest charges.

The second order focuses on FY 2018-19, demanding recovery of ₹17.83 crores for excess ITC claims, matched by an equal penalty of ₹17.83 crores, along with applicable interest charges.

Company Response

HeidelbergCement India has stated that these orders will not materially impact the company's financial position or operational activities. The company is reviewing both orders and considering available legal options to contest the demands.

Disclosure Timeline

• Both orders were uploaded to the GST portal on December 28.
• The company downloaded the orders on the same day at approximately 6:30 PM.
• The disclosure was made in compliance with SEBI regulations governing listed entities' obligations to inform stakeholders about significant regulatory actions.

Regulatory Compliance

The company filed this disclosure under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The announcement was signed by Ravi Arora, Vice President-Corporate Affairs and Company Secretary, and has been published on the company's official website under the corporate announcements section.

HeidelbergCement India , a prominent player in the Indian cement industry, has announced its financial results for the second quarter, showcasing significant improvements across key financial metrics.

Strong Financial Performance

The company reported a remarkable year-on-year growth in its financial indicators for Q2:

The company's EBITDA per tonne increased from ₹380.00 in the previous year's quarter to ₹535.00 in the current quarter, representing a 40.7% rise.

Operational Highlights

HeidelbergCement India's performance was driven by a combination of increased sales volumes and improved pricing. The company reported:

• A 9.2% increase in sales volumes
• An approximately 2% improvement in prices
• A reduction in total operating costs, including freight, by about 2% on a per-tonne basis compared to the same period last year

Sustainability Initiatives

The company has made significant strides in its sustainability efforts:

• Over 50% of its energy now comes from its own generation and various power purchase agreements across all manufacturing units
• Alternative fuels account for approximately 8% of its energy portfolio, aligning with its decarbonization and circular economy principles

Financial Position

As of the end of the quarter, HeidelbergCement India maintained a strong financial position:

• Cash and bank balance stood at ₹3,808.00 crore
• Interest-free borrowings were at ₹687.00 crore

Dividend Distribution

The company distributed a dividend of ₹7.00 per share for the previous fiscal year.

GST Impact

Following the government's rationalization of GST on cement from 28% to 18%, HeidelbergCement India has passed on the full benefit to customers by reducing cement prices.

Management Commentary

Joydeep Mukherjee, Managing Director of HeidelbergCement India, stated, "Our Q2 results reflect our commitment to operational excellence and sustainability. The significant improvements in our financial metrics, coupled with our progress in energy transition and use of alternative fuels, position us well for continued growth and value creation."

HeidelbergCement India's strong Q2 performance demonstrates its resilience and strategic focus on both financial growth and sustainability initiatives. The company's ability to improve margins while passing on GST benefits to customers highlights its competitive strength in the Indian cement market.