ICICI Securities: Heidelberg Cement Q2 Review - Sustaining Strong Profitability
Workers spread wet cement as they lay foundations during the construction of a new railway bridge. (Photographer: Simon Dawson/Bloomberg)  

ICICI Securities: Heidelberg Cement Q2 Review - Sustaining Strong Profitability

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Securities Heidelberg Cement India Q2FY21 Results Update.pdf


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