ICICI Securities: Heidelberg Cement Q2 Review - Sustaining Strong Profitability
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ICICI Securities Report
Heidelberg Cement India Ltd.’s Q2 FY21 Ebitda grew 3% YoY to Rs 1.26 billion with Ebitda/tonne increasing 5% YoY to Rs 1,137/tonne – broadly in-line with our estimates.
Given high focus on profitability, QoQ realisation decline was restricted to 2.4% QoQ (our estimate 3.5% QoQ).
However, this resulted in marginally lower volumes, which declined 2% YoY. Cash conversion was strong at 110% of Ebitda with negative working capital during H1 FY21.
The company generated free cash flow of Rs 2.4 billion post capex spend of Rs 133 million in H1 FY21.
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