Dalmia Bharat Q2 Results: Profit More Than Doubles Beating Estimates

Dalmia Bharat Ltd.'s second-quarter profit more than doubled, beating analysts' estimates.

The cement company's net profit rose 161.70% year-on-year to Rs 123 crore in the quarter ended September, according to an exchange filing on Saturday. That compares with the Rs 111 crore consensus estimate of analysts tracked by Bloomberg.

The company's revenue rose nearly 6%.

Dalmia Bharat Q2 FY24 Highlights (YoY, Consolidated)

• Revenue up 5.99% at Rs 3,149 crore. (Bloomberg estimate: Rs 3,310.32 crore).

• Ebitda up 55.41% at Rs 589 crore. (Bloomberg estimate: Rs 561.05 crore).

• Margin at 18.7% vs 12.76% (Bloomberg estimate: 16.9%).

• Net profit up 161.7% at Rs 123 crore. (Bloomberg estimate: Rs 111 crore).

Management Comments

“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," said Puneet Dalmia, managing director and chief executive officer at Dalmia Bharat Ltd.

"In the last 3.5 years, we have added around 17.2 million tonne cement capacity, which is around 65% growth over FY20 capacity. In line with our vision to reach 110‐130 MnT by 2031, we are continuing to make consistent strides in that direction and capitalise upon the huge opportunity ahead of us," he 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," said Mahendra Singhi, the managing director and chief executive officer at Dalmia Cement Ltd., a 100% subsidiary of the company

"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 said.

Shares of Dalmia Bharat fell 0.90% to close at Rs 2,280.00 apiece on Friday, compared with a 0.22% decline in the benchmark Nifty 50.