HeidelbergCement India Q2 profit jumps five-fold on higher infrastructure demand

Heidelbergcement India

06/11/2023 08:48

BENGALURU, Nov 6 (Reuters) - HeidelbergCement India  HEID.NS  on Monday reported more than
a five-fold surge in quarterly profit, boosted by higher infrastructure spending ahead of elections
in the country.
    The Indian unit of Germany-based HeidelbergCement Group reported a net profit of 358 million
rupees ($4.30 million) for the three months ended Sept. 30 from 70.1 million rupees a year earlier.
    Revenue from operations was up nearly 12% at 5.66 billion rupees, while sales volume rose
16.3%.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3C4660
    
KEY CONTEXT    
    
    Most cement companies saw a rise in profit during the quarter as demand from government
infrastructure projects remained strong ahead of state and general elections.  
    India also saw its weakest monsoon since 2018, leading to more days for infrastructure
activity.
    Earlier, peers JK Cement  JKCE.NS  and JK Lakshmi Cement  JKLC.NS  reported high double-digit
year-on-year growth in quarterly profit. 
    
    
PEER COMPARISON

                               Valuation (next 12   Estimat  Analys                           
                                    months)           es      ts'                             
                                                     (next   sentim                           
                                                      12      ent                             
                                                    months)                                   
                   RIC        PE     EV/EBI  Price  Revenue  Profit  Mean    # of   Stock to  Div
                                     TDA     /Sale  growth   growth  rating  analy  price     yield
                                             s                       *       sts    target**  (%)
 HeidelbergCement   HEID.NS   17.93    9.34  NULL    7.52    43.41   Hold       12    1.01     3.73
 India Ltd                                                                                    
 JK Lakshmi         JKLC.NS   15.89    8.70  NULL    10.09   32.14   Buy        12    0.99     0.50
 Cement Ltd                                                                                   
 Birla              BRLC.NS   18.33    9.06  NULL    8.78    104.41  Strong     16    0.91     0.19
 Corporation Ltd                                                     Buy                      
 JK Cement Ltd      JKCE.NS   28.10   13.33  NULL    11.88   42.61   Hold       16    0.95     0.48
    
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock
is trading above the PT
    
JULY-SEPT STOCK PERFORMANCE
    
    

-- All data from LSEG
-- $1 = 83.2050 Indian rupees        
    
    
    

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HeidelbergCement India shares vs Peers    https://tmsnrt.rs/3tT8Mr9
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Sohini Goswami)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))