HeidelbergCement India (500292) Q4 98/99 earnings summary

Executive summary

• Cement sales reached 1.70m tonnes, while reported turnover was Rs 329.10 cr; depressed prices and higher finance charges contributed to a loss of Rs 48.98 cr.

• Cost controls, captive power additions and a planned 15 MW thermal plant supported efforts to improve efficiency and reduce manufacturing costs.

Financial highlights

• Turnover was Rs 329.10 cr versus Rs 401.42 cr in the prior 15-month period; comparisons are not directly comparable.

• Operating profit was Rs 14.71 cr versus Rs 24.13 cr in the prior period, stated on an annualized basis; finance charges rose to Rs 44.80 cr from Rs 39.81 cr annualized.

• Reported loss was Rs 48.98 cr; EPS was -Rs 9.67.

• No dividend was recommended due to the loss; accumulated losses carried to the Balance Sheet were Rs 69.93 cr.

Outlook and guidance

• Cement demand rose 22% YoY in April–July; management expected 11–13% demand growth for the current fiscal year, supported by housing and infrastructure incentives.

• April–June production was 4.71 lakh tonnes and sales were 4.98 lakh tonnes; management said this established a 2.0m-tonne capacity benchmark to pursue as markets improved.

• A 15 MW thermal power plant was under installation; commissioning was expected to make the Narsingarh clinker plant fully self-sufficient in power.