Dalmia Bharat Q1 FY25 Results: Capacity Growth and Strong Performance

On July 18, 2024, Dalmia Bharat Limited, a major cement manufacturer, announced its consolidated financial results for the quarter ending June 30, 2024.

Q1 FY25 Highlights

For Q1 FY25, Dalmia Bharat Limited reported several key achievements. As of June 30, the company had an installed cement capacity of 45.6 MnT, with a current capacity of 46.6 MnT. Cement volume grew by 6.2% year-over-year, reaching 7.4 MnT. EBITDA saw a 9.2% increase, totalling ₹669 crore. Renewable energy consumption rose to 35%, and the company executed renewable power agreements under group captive for a cumulative 127 MW. Additionally, the net debt to EBITDA ratio was recorded at 0.17x.

Commenting on the performance, Mr Puneet Dalmia, Managing Director and CEO of 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 the 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.”

Key Updates

Dalmia Bharat Limited has commissioned 1 MnT cement capacity at its existing units in Ariyalur, Tamil Nadu, and Kadapa, Andhra Pradesh. This expansion increases the company’s total installed capacity to 17 MnT in the South and 46.6 MnT across India, aligning with its long-term growth strategy to reach a total capacity of 110-130 MnT by 2031.

As part of its commitment to achieving RE100 by 2030 and becoming carbon-negative by 2040, Dalmia Cement (Bharat) Limited, a wholly-owned subsidiary, has entered into multiple Renewable Power Agreements under the Group Captive scheme. These agreements will secure 127 MW of renewable power from solar and wind energy, with the plants expected to be operational in FY25 and FY26.

Key Recognitions During the Quarter

• The CDP Leadership Award (CDP Discloser 2023, Climate) was awarded for its dedication to environmental stewardship.
• Named the Supply Chain Champion for the Northern Region at the ISCM Supply Chain Rankings of the 2nd India Supply Chain Leaders Senate 2024.
• The Procurement Excellence of the Year award was received at the 2nd Procure Connect Confex & Awards 2024.

About Dalmia Bharat

Founded in 1939, Dalmia Bharat is one of India’s pioneering cement companies headquartered in New Delhi. With a current capacity of 46.6 MnT, Dalmia Bharat and its subsidiaries are the 4th largest cement manufacturer in India by installed capacity.

On July 19, 2024, Dalmia Bharat Limited’s share price opened at ₹1,944.00, touching the day’s low of ₹1,837.55 as of 09:26 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.