Cement & Cement Products company Dalmia Bharat announced Q2FY24 results:
1. Financial Performance:
- Dalmia Bharat reported a 6.6% YoY increase in sales volume, reaching 6.2 MnT in Q2FY24.
- Income from operations grew by 6.0% YoY to Rs 3,149 crore.
- The company achieved a significant YoY improvement in EBITDA, which increased by 55.2% to Rs 589 crore.
- EBITDA per ton (EBITDA/T) also saw a strong growth of 45.6% YoY, reaching Rs 955.
2. Capacity Expansion and Production:
- Dalmia Bharat commenced commercial production from a new Greenfield Cement Grinding unit in Sattur, Tamil Nadu, with a manufacturing capacity of 2.0 MnT.
- The company also started commercial production of clinker, adding 0.5 MnT to the total clinker capacity, which now stands at 22.2 MnT.
- In the first half of the year, Dalmia Bharat commissioned 5.1 MnT of cement and 0.5 MnT of clinker capacity in the East and South regions.
3. Dividend and Capital Allocation:
- Dalmia Bharat declared an interim dividend of Rs 4 per share, following its capital allocation framework.
4. Environmental Sustainability:
- Dalmia Bharat achieved one of the lowest carbon footprints in the global cement sector, with 456 kg CO2 per ton of cement.
- The company's renewable energy consumption increased to 29% in Q2FY24, contributing to its commitment to reducing environmental impact.
5. Recognitions and Awards:
- Six plants of Dalmia Bharat received eight awards under the Excellent Energy Efficient category at the 24th CII National Energy Award 2023.
- Dalmiapuram unit won the CII SR Waste Management Competition 2023 for Best Solid Waste Management Award.
- The company's "Home Maker" digital campaign won the Silver for Excellence in Omni-channel Marketing at the Datamatix Summit Awards by Adgully.
- Dalmia Bharat won the Best Supply Chain Company Award at the 15th ELSC Leadership Awards 2023.
Commenting on the quarter gone by, Puneet Dalmia, Managing Director & CEO – Dalmia Bharat, said, “We see a multi-year strong cement demand trend continuing, as India is undergoing a large-scale metamorphosis. We were one of the first ones to foresee this upcycle and started building our capacity ahead of time. In the last 3.5 years, we have added ~17.2 MnT cement capacity, which is ~65% growth over FY20 capacity. In line with our vision to reach 110-130MnT by 2031, we are continuing to make consistent strides in that direction and capitalize upon the huge opportunity ahead of us.”
Mahendra Singhi, Managing Director and CEO – Dalmia Cement (Bharat) said, “With the reduction in fuel prices, increased usage of Renewable power and improvement in KPIs, we were able to deliver 55% YoY improvement in our EBITDA, which stands at Rs 589 crore. During the first half of the year, we commissioned 5.1 MnT of cement and 0.5 MnT clinker capacity in the East and South regions.”
He further mentioned, “We continue to demonstrate our commitment towards the environment as we have further brought down our carbon footprint to 456 kg CO2 per ton of cement which is one of the lowest in the global cement sector.”