Dalmia Bharat Optimistic About The India Growth Story

Q2 FY25 Highlights

Volume increased 8.4% YoY to 6.7 MnT

EBITDA/T stood at Rs 650/T

Renewable Energy consumption increased to 39%[1]

Executed Renewable Power Agreements under Group Captive for 151 MW cumulatively (in addition to 127 MW already executed earlier)

Net Debt to EBITDA stood at 0.25x

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

Commenting on the performance, Mr. Puneet Dalmia, Managing Director & CEO – Dalmia Bharat Limited, said, “India’s economic resilience with Government’s sustained thrust on building infrastructure and promoting manufacturing sector, underpins my conviction in the India growth. I believe that as India grows, cement sector being a proxy, will continue to flourish. We are actively working to announce our Phase II expansions within the next 9 months and achieve our interim milestone of 75 MnT by FY28.”

Mr. Dharmender Tuteja, Chief Financial Officer – Dalmia Bharat Limited, said “I am pleased that we delivered a strong volume growth of 8.4% YoY in Q2 FY25. However, the continuous & unprecedented softness in cement prices resulted in revenue declining 2.1% to Rs 3,087 Cr, and EBITDA falling 26.8% YoY to Rs 434 Cr for the quarter. While external challenges weighed on profitability, we remain focused on long-term cost drivers for margin improvement.”

Key updates

Commissioned 16 MW Captive solar power plant at Sattur, Tamil Nadu, increasing our total RE capacity to 202 MW

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 151 MW of renewable power energy. This is in addition to 127 MW of power agreements signed in Q1 FY25. With this, we have collectively signed agreements for 278 MW of RE Power. Commissioning of Renewable power plants is expected to be in FY25 & FY26.

In line with the Capital Allocation framework, the company has declared an interim dividend of Rs 4 per share.

Key Recognitions during the quarter

Recognized with India’s Most Sustainable companies and top 3 businesses in Cement & Building Material sector by the Business World for its commitment to sustainability and innovation

Recognized as the Best Sustainable Project for its initiative, Annadata. This project is a testament to Dalmia Cement's commitment towards rural innovation and social responsibility.

Three unit of Dalmia Cement won National Excellent Energy Efficient Units Award by CII’s 25th Energy Management Award 2024.

Mines at Kadapa unit have received 5 Star rating for sustainable mine management.