Heidelberg Cem

The company posted a set of ‘mixed’ numbers for its third quarter ended 30th Sept 2012. On  a YoY, the company has turned around from a net loss at Rs.8.16 crore in Q3CY11 to a net profit at Rs.7.51 crore in current Q3. But sequentially, net profit has dropped 61% and this is on account of a lower net sales at Rs.255 crore, down 16% (QoQ). A 12% drop in operating cost and 26% drop in interest outgo and a whopping 61% drop in tax helped the company post at least this net profit. Demanf was affected due to rains in August and this is seasonal, nothing untoward.

But since then demand has been high and the company has hiked prices by Rs.2-4/bag. Hike in railway freight and diesel to the tune of 6% is also one of the prime reasons for the hike in cement price. Cement prices are expected to go up Northern, Central and Eastern regions in the coming weeks. Cement is currently the ‘hot’ pick on the bourses as most brokerage houses expect this sector to post very good  numbers in the coming months on the back of demand picking up and realisations rising due to higher prices. The company’s net profit at the end of 9 months ended 30th Sept 2012 was at Rs.38 crore, which has already surpassed the previous 12 months net profit at Rs.29 crore and 22% higher on a YoY. Clearly, it will end current year on a much higher note.