Thursday, July 18, 2024

Dalmia Bharat Limited Reports A Positive "Financial Results For The Quarter Ended June 30, 2024"


Q1 FY25 Highlights

Installed cement capacity on 30th June at 45.6 MnT (Current 46.6 MnT)

Volume increased 6.2% YoY to 7.4 MnT

EBITDA increased 9.2% YoY to Rs. 669 Cr

Renewable Energy consumption increased to 35%[1]

Executed Renewable Power Agreements under Group Captive for 127 MW cumulatively.

Net Debt to EBITDA stood at 0.17x

Dalmia Bharat Limited, (BSE: 542216, NSE: DALBHARAT), a leading cement manufacturing company, reported its consolidated financial results for the quarter ended June 30, 2024.

Commenting on the performance, Mr. Puneet Dalmia, Managing Director & CEO – Dalmia Bharat Limited, said, “The continuity of the incumbent government at the Centre ensures policy stability and a continued focus on infrastructure spending, which bodes well for cement sector's long-term prospects, particularly cement demand. During the quarter, even though cement demand was weak across regions amidst general elections, our volumes grew 6.2% YoY while margins improved to 18.5% from 16.9% last year.”

Mr. Dharmender Tuteja, Chief Financial Officer – Dalmia Bharat Limited, said “The cement pricing continued to be weak during the quarter, but we saw a notable improvement in margins due to better input prices and reversal of certain cost inefficiencies of the previous quarter. We are progressing well on the long-term levers of margin improvement including investment in brand, renewable energy and operationalizing captive coal mines.” He also said, “We have added 2 MnT of cement capacity in South and are on track to add another 2.9 MnT in North East & East region during FY25. Our strong balance sheet positions us well for the next phase of expansion.”

Key updates

Commissioned 1 MnT cement capacity each at its existing units at Ariyalur, Tamil Nadu and Kadapa, Andhra Pradesh respectively. This takes company’s overall installed capacity to 17 MnT in South and 46.6 MnT in India, and is in line with the long-term growth strategy of increasing the total capacity to 110-130 MnT by the 2031.

In line with the commitment towards RE100 by 2030 & Carbon Negative by 2040, Dalmia Cement (Bharat) Limited, a wholly owned subsidiary of the Company, has entered into multiple Renewable Power Agreements under the Group Captive, which will secure 127 MW of renewable power through Solar and Wind energy. The commissioning of these Renewable power plants is expected to be in FY25 & FY26.

Key Recognitions during the quarter

Recognized with CDP Leadership Award (CDP Discloser 2023, Climate) for its commitment to environmental stewardship

Recognized as the Supply Chain Champion for the Northern Region at the ISCM Supply chain rankings of the 2nd India Supply Chain Leaders Senate 2024

Won the Procurement Excellence of the Year at the 2nd Procure Connect Confex & Awards 2024.

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