HeidelbergCement India posts 7.2% uptick in revenue in FY22

HeidelbergCement India has recorded a one per cent YoY increase in revenue (net of taxes) to INR5867m (US$75.65m) in the first quarter of 2022. EBITDA over the same period has fallen 22.1 per cent to INR1186m, with the EBITDA margin contracting from 26.2 to 20.2 per cent. Profit after tax in the 1Q22 came in at INR936m, down 33.1 per cent YoY. EBITDA per tonne stood at INR961, a decline of 21 per cent YoY. Sales volumes of 1.23Mt were recorded in the 1Q22, down from the 1.25Mt seen in the same period a year earlier.  

The uptick in revenue is being attributed to higher prices, which have risen by 2.4 per cent over the three-month period. However, on a per tonne basis total operating costs, including freight, have increased by 13.6 per cent YoY on the back of higher coal, petcoke, diesel and packaging costs. The quarter also saw the company commission an alternative fuels project at its Narsingarh clinker plant in Madhya Pradesh, designed to reduce CO₂ emissions by around 42,000tpa. It also commissioned a 5.5MW solar power plant at its facility at Patharia Mines. The plant is expected to generate 10GWh per annum, saving approximately 225,000t of CO₂ over its lifetime.  

For the FY22 period, revenue saw a 7.2 per cent increase YoY to INR22,426m. However, EBITDA declined by 14.2 per cent to INR4346m, with the EBITDA margin falling from 24.2 per cent in FY21 to 19.4 per cent. Profit after tax dropped 19.9 per cent YoY to INR2523m, while EBITDA per tonne contracted from INR1129m in FY21 to INR910m in the same period this year, down 19.5 per cent.  

Sales volumes over FY22 saw a 6.5 per cent YoY increase to 4.78Mt, with the utilisation rate over the same period improving from 72 to 76 per cent. On a per tonne basis, prices remained flat, compared to a nine per cent uptick in total operating costs. However, rising power and fuel prices were partially offset by the company’s waste heat recovery systems. Its green power share advanced to more than 23 per cent over FY22 with plans to increase this to over 35 per cent.