Heidelberg Cement India slumped 4.15% to Rs 197.45 after the company reported 88.2% drop in net profit to Rs 7 crore in Q2 FY23 from Rs 59.6 crore in Q2 FY22. Revenue during the quarter declined by 12.2% YoY to Rs 506 crore. Sales volume contracted by 18.8% to 1 million tones in Q2 FY23 from 1.23 million tones in Q2 FY22.
Total expenses increased by 1.57% to Rs 507.26 crore in Q2 FY23 over Q2 FY22, due to sharp rise in finance costs (up 84.30% YoY) and power & fuel charges (up 19.35%). "Finance cost for the quarter and six months ended 30 September 2022 includes provision for interest amounting to Rs 9.47 crore in respect of litigation, the company said in a statement.
EBITDA fell by 59.2% to Rs 47.6 crore in Q2 FY23 from Rs 116.5 crore in Q2 FY22. EBITDA margin was 9.4% in Q2 FY23 as against 20.2% in Q2 FY22.
On a per tonne basis, operating costs including freight increased by approximately 23% YoY due to a steep increase in coal, pet coke, diesel & packaging costs. The increase was partially offset by an increase in prices resulting in EBITDA of Rs 476 per tonne, a decrease of approximately 50% YoY.
The company increased its green power across plants, the overall share of green power increased to 34% in Q2 FY23 from 27% in Q2 FY22. As at 30 September 2022, cash & bank balance stood at Rs 223.7 crore as against interest-free borrowings of Rs 234.6 crore.
Heidelberg Cement India is a subsidiary of HCAG, Germany. The company operates in central India in Damoh (Madhya Pradesh) and Jhansi (Uttar Pradesh) and in southern India in Ammasandra (Karnataka).
