Dalmia Bharat Limited Shows Growth in Sales Volume Despite Profitability Challenges

New Delhi / October 21, 2024: Dalmia Bharat Limited, a leading cement manufacturer, reported a rise in sales volume by 8.4% to 6.7 million tonnes (MnT) for the second quarter (Q2) and first half (H1) of the fiscal year 2025 (FY25). 

The income from operations grew marginally to Rs. 3,087 crore. However, earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined by 26.8% to Rs. 434 crores, and net profit plunged by 60.2% to Rs. 49 crore. The company’s H1 FY25 results included a one-time provision of Rs. 84 crore related to Jaiprakash Associates Ltd. Despite these challenges, Dalmia Bharat’s net debt to EBITDA ratio improved to 0.25x in Q2 FY25 from 0.59x in Q2 FY24, indicating a significant reduction in debt levels, the company said in a statement. 

Commenting on the performance, Puneet Dalmia, Managing Director & CEO – Dalmia Bharat Limited, said, “India’s economic resilience with the Government’s sustained thrust on building infrastructure and promoting manufacturing sector, underpins my conviction in the India growth. I believe that as India grows, the 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.”

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.”

Dalmia Bharat commissioned a 16-MW captive solar power plant in Sattur, Tamil Nadu, increasing its total renewable energy (RE) capacity to 202 MW. The company has entered into multiple Renewable Power Agreements under the Group Captive, which will secure 151 MW of renewable power energy, in line with its commitment towards RE100 by 2030 and Carbon Negative by 2040. This brings the total RE power agreements signed by the company to 278 MW, with commissioning expected in FY25 and FY26. In line with its Capital Allocation framework, Dalmia Bharat Limited has declared an interim dividend of Rs 4 per share, the statement added.