Heidelberg Cement India: Yet another poor quarter

Growth has been disappointing for this cement company for the past couple of quarters. Since the setback is more or less priced in, long-term investors can bet on it at the current price

Sachin Pal
October 19, 2022 / 10:35 AM IST
Heidelberg Cement India: Yet another poor quarter

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PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

Highlights Q2 volumes came in at 1 million tonnes, down 19 percent YoY Input inflation puts pressure on margins Company sees cement price moving up Operates on negative working capital Reasonably valued vs large cap peers Heidelberg Cement India’s September-quarter numbers were substandard across the board. The company delivered an all-round miss in Q2, with a significant decline in both volumes and margins. Volumes disappoint again Heidelberg Cement India once again delivered a weak set of numbers in Q2 FY23. Revenues for the period declined 12 percent...