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HeidelbergCement India reported a 36.65% year-on-year decline in its net profit for the first quarter of FY27 as rising raw material, power and fuel costs impacted its earnings despite higher sales volumes and improved pricing. The company posted growth in revenue and total income during the quarter, supported by stronger demand and better realisations. However, increased operating expenses, including freight costs linked to geopolitical developments in West Asia, put pressure on margins. The company also reported a decline in EBITDA per tonne compared to the corresponding period last year.
HeidelbergCement India Ltd reported a 36.65% year-on-year decline in its consolidated net profit for the first quarter of FY27, with earnings affected by higher raw material, power and fuel costs during the period.
The company posted a net profit of INR 30.55 crore for the June quarter, compared with INR 48.23 crore in the corresponding quarter of the previous financial year, according to its regulatory filing.
Despite the decline in profit, revenue from operations increased by 5.11% to INR 628.11 crore, up from INR 597.54 crore in the same quarter last year.
According to the company's earnings statement, the growth in revenue was driven by a 3.6% increase in sales volumes along with a 1.5% improvement in pricing.
However, operating costs continued to rise during the quarter. Total operating expenses, including freight, increased by 6.4% year-on-year, primarily due to higher raw material, power and fuel costs. The company attributed these higher input costs mainly to the ongoing situation in West Asia, which has affected energy prices and logistics costs across industries.
The company further stated that improved pricing partly offset the impact of rising costs. However, EBITDA per tonne declined by 27% year-on-year to INR 3,514, reflecting pressure on operating margins.
Total expenses during the quarter rose 9.4% year-on-year to INR 593.43 crore, while total income, including other income, increased 4.5% to INR 634.40 crore.
HeidelbergCement India is the Indian subsidiary of Heidelberg Materials, the Germany-based multinational building materials company. The company manufactures and markets cement under the HeidelbergCement and mycem brands and operates integrated cement plants and grinding units across central India, serving key markets including Madhya Pradesh, Uttar Pradesh, Bihar and Jharkhand.
Following the financial results, shares of HeidelbergCement India closed at INR 154.65 on the BSE, down 1.50% from the previous closing price.
Source PTI
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