Heidelberg Cement Q2 Review - Elevated Costs Impact Margins Despite Strong Volume Growth: Axis Securities
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Axis Securities Report
Heidelberg Cement India Ltd. reported higher volume/revenue growth of 11%/12% YoY in Q2 FY22 on account of superior demand environment in its key central region market.
The company reported volume at 1.23 million tonnes per annum against 1.11 mtpa YoY.
The Ebitda margins declined to 20.2% from 24.5% in Q2 FY21 owing to elevated input costs YoY (especially power and fuel, up 27%).
Heidelberg Cement reported Ebitda/tonne of Rs 946, down 17% YoY (Q2 FY21-Rs 1135/tonne) as higher input cost dented the overall margins during the quarter.
Realisation/tonne came in at Rs 4,683 against Rs 4,628, higher by1.2% on a YoY basis and remained flat on QoQ basis.
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