HeidelbergCement India (500292) Q4 02/03 earnings summary

Executive summary

• FY2002-03 gross sales rose 17.5% to Rs.424.02 crore, while a Rs.146/tonne decline in cement realization contributed to a net loss of Rs.2,444.32 lakh.

• Production exceeded 2 million tonnes for the first time; capacity utilization reached 99%, despite severe working-capital constraints.

• No dividend was recommended because of the loss.

Financial highlights

• Gross sales were Rs.42,401.90 lakh versus Rs.36,083.48 lakh; net sales were Rs.34,897.40 lakh versus Rs.29,824.85 lakh.

• Loss before tax was Rs.3,566.00 lakh versus Rs.2,738.25 lakh; loss after tax was Rs.2,444.32 lakh versus Rs.1,998.96 lakh.

• Interest and financial charges increased to Rs.3,092.83 lakh from Rs.2,940.46 lakh; depreciation was Rs.2,093.14 lakh versus Rs.2,122.23 lakh.

Outlook and guidance

• Management expected cement demand to grow in FY2003-04, supported by housing incentives, infrastructure and road projects, and a delayed but normal monsoon.

• Management anticipated gradual price improvement after the monsoon, citing the easing supply-demand imbalance, no major near-term capacity additions and industry consolidation.

• Further production increases were targeted through continued plant productivity improvements, cost controls and efficiency measures.