Dalmia Cement (Bharat) Ltd Begins 1.0 MTPA Production in Kadapa, AP

On July 04, 2024, Dalmia Bharat Limited announced via a stock exchange filing that Dalmia Cement (Bharat) Limited, a wholly-owned subsidiary of Dalmia Bharat Limited, commenced commercial production of 1.0 MTPA at a new cement mill within its existing Kadapa, Andhra Pradesh plant, effective July 3, 2024.

This expansion brings the company’s total capacity to 46.6 MTPA from the previous 45.6 MTPA. This project required an investment of ₹207 crore, financed through a combination of debt and equity.

This capacity enhancement is strategically aimed at meeting the rising demand in the southern region’s cement market.

As of June 30, 2024, the company’s existing capacity utilisation stood at 63%, reflecting a prudent use of existing resources and positioning it to capitalise on regional growth opportunities.

Financial Highlights

In the quarter ending March, Dalmia Bharat reported a consolidated net profit of ₹320 crore, marking a 47.5% decline from ₹609 crore in the year-ago period. The company’s revenue from operations surged 10% year-on-year to ₹4,307 crore, up from ₹3,915 crore a year earlier.

Additionally, the cement player’s volumes rose by 11.8% year-on-year during this period. The unexpected decline in cement prices led to a decrease in earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the quarter, resulting in the EBITDA margin declining from 18.1% in Q4FY23 to 15.2% in Q3FY24.

About Dalmia Bharat Limited

Dalmia Bharat, established in 1939 by the Late Shri Jaidayal Dalmia, is a prominent player in the cement manufacturing and sales sector in India. Based on installed capacity, it ranks as the fourth largest cement manufacturer in the country. The Dalmia Bharat Group, known for its rapid growth and profitability, also includes Dalmia Bharat Sugar Ltd, a leading multi-product company in the cane-based sector. The company aims to achieve 75 million metric tonnes of cement production by 2027. It plans to increase its clinker capacity to 27 million metric tonnes by the fiscal year ending 2026.

On July 04, 2024, the share price of Dalmia Bharat Ltd opened at ₹1,860.00, touching the day’s highest price of ₹1,870.25 as of 12:42 PM on the NSE.

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