HeidelbergCement India: 3QFY17 Result: FIRST CUT - Reliance Securities

HeidelbergCement India (HCIL) has broadly reported in-line operating performance as EBITDA came in at Rs391mn (-32% YoY) as against our estimate of Rs400mn. Contraction in EBITDA is primarily on account of, a) 4% YoY decline in sales volume at 1.05mnT and b) 5% YoY surge in operating cost/tonne due to significant spike in other expenditures/tonne (+16% YoY).

- EBITDA/tonne stood at Rs373 as against Rs526 and Rs598 in 3QFY16 and 2QFY17, respectively. EBITDA margin came in at 10.1% (a contraction of 421 bps on YoY basis).

- Notably, HCIL has booked an exceptional item of Rs150mn pertaining to a doubtful capital advance, which is sub-judice.

- Adjusted PAT came in at Rs65mn vs. our expectation of Rs27mn mainly supported by 95% YoY increase in other income.

- We have positive view on the stock and will come out with a detailed note soon.

Shares of HEIDELBERGCEMENT INDIA LTD. was last trading in BSE at Rs.123 as compared to the previous close of Rs. 125.95. The total number of shares traded during the day was 27378 in over 361 trades.

The stock hit an intraday high of Rs. 125.35 and intraday low of 122.15. The net turnover during the day was Rs. 3385067.

Source : Equity Bulls

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