Dalmia Bharat Shares in Focus: PAT Slipped 75% During Q3 FY25

On January 21, 2025, Dalmia Bharat released its Q3FY25 results, wherein it recorded a significant 75% YoY decline in its consolidated net profit for Q3 FY25, which stood at ₹66 crore, compared to ₹266 crore in the same quarter last fiscal year.

Dalmia Bharat Q3FY25 Performance

The revenue from operations for the quarter fell by 11.7% YoY, amounting to ₹3,181 crore, down from ₹3,604 crore in Q3 FY24. This drop was primarily attributed to a sharp decline in cement prices. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a decline of 34.5%, falling to ₹511 crore from ₹779 crore in Q3 FY24.

The quarterly cement sales volume decreased by 2%, standing at 6.7 million tons (MnT) in Q3 FY25, compared to 6.8 MnT during the same period last year.

Dalmia Bharat Q3 FY25 Business Update

1. Debottlenecking and Capacity Expansion: Dalmia Bharat completed debottlenecking at two locations: Rajgangpur in Odisha (0.6 MnT) and Kadapa in Andhra Pradesh (0.3 MnT). These upgrades increased the total clinker capacity to 23.5 MnT.
2. Renewable Energy Initiatives: In alignment with its commitment to the RE100 initiative by 2030, Dalmia Bharat has entered into multiple Renewable Power Agreements under the Group Captive model, securing 21 MW of renewable energy (RE) power. This adds to the 278 MW of RE power agreements signed earlier in H1 FY25, totalling 299 MW of RE power agreements. The commissioning of these capacities is ongoing and will continue throughout FY25 and FY26.
3. Solar Power Expansion: The company commissioned a 4 MW captive solar power plant at Medinipur, West Bengal, and 46 MW of RE capacity under the Group Captive model. This increased Dalmia Bharat’s total operational RE capacity to 252 MW.
4. ESG Rating: Dalmia Bharat received a Combined ESG (Environmental, Social, and Governance) rating of 78 (strong) from ICRA ESG, reinforcing the company’s position as a leader in sustainability within India’s cement sector.

Commenting on the performance, Mr Puneet Dalmia, Managing Director & CEO – Dalmia Bharat Limited, said, “After multiple years of high growth, India witnessed a slightly slow start to the year, but the government’s continuous focus on investment-led growth coupled with the strong structural growth drivers underpin my confidence in a rebound of the Indian economy. In this backdrop, I believe cement demand growth will regain momentum. Our capacity expansion plans are on track as we will reach 49.5 MnT by the end of this year.”

Mr. Dharmender Tuteja, Chief Financial Officer – Dalmia Bharat Limited, said “Cement demand growth in Q3 fell short of our earlier expectations. Our volumes de-grew by 2% YoY while EBITDA fell 34.5% YoY to Rs 511 Cr with persistent softness in cement prices. With demand now gaining traction and prices showing signs of optimism, we are confident about a stronger performance in the upcoming quarters.” He further added, “Our strong Balance Sheet with a healthy leverage ratio ensures that we are well-positioned to pursue the next phase of expansion.”

On January 22, 2025, Dalmia Bharat shares opened at ₹1,694.95 and touched the day low of ₹1,694.95 at 09:20 AM, reflecting a fall of 0.38% as compared to the previous close

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