Dalmia Bharat, a leading cement company, declared its Q4 results on April 24, 2024, revealing a mixed bag of financial performance with a 10.1% increase in revenue but a significant 46.52% decrease in profit year-over-year. The company also witnessed substantial growth compared to the previous quarter, with revenue surging by 19.64% and profit increasing by 19.77%. However, selling, general & administrative expenses for Dalmia Bharat rose by a notable 26.76% quarter-on-quarter and 20.63% year-on-year.
Commenting on the performance, Mr Puneet Dalmia, Managing Director & CEO of Dalmia Bharat Limited, highlighted the pivotal role of the cement sector in India’s growth story. He emphasized that infrastructure, housing, and private capital expenditure would continue to drive demand growth for the foreseeable future. Despite the profit decline, Dalmia Bharat achieved a volume growth of 11.8% at 28.8 million metric tons (Mnt) during FY24, along with an EBITDA growth of 13.4% at Rs. 2,639 crore.
Mr Dharmender Tuteja, Chief Financial Officer of Dalmia Bharat Limited, acknowledged the industry-leading volume growth of 18.5% year-on-year during the quarter. However, he attributed the unexpected drop in cement prices to the erosion of EBITDA, with the margin declining from 18.1% in Q4’23 to 15.2% in the current quarter. Tuteja outlined the company’s focus on long-term cost savings, including renewable energy initiatives, operationalizing captive coal mines, supply chain digitization, and brand investment.
Key updates for the quarter include Dalmia Cement’s commitment to home builders with a new brand positioning as the Roof Column Foundation (RCF) Expert, featuring actor Ranveer Singh as the Brand Ambassador. Additionally, in line with its commitment towards RE100 by 2030 & Carbon Negative by 2040, Dalmia Cement (Bharat) Limited has entered into agreements to acquire a significant stake in O2 Renewable Energy V Private Limited, aiming to source wind power as a captive consumer.
The Board has recommended a final dividend of Rs 5 per share (250%) for FY 2023-24, subject to approval at the ensuing Annual General Meeting.
Founded in 1939, Dalmia Bharat Limited (DBL) is one of India’s pioneering cement companies headquartered in New Delhi. With a current capacity of 44.6 million metric tons, Dalmia Bharat Limited, including its subsidiaries, ranks as the fourth-largest cement manufacturing company in India by installed capacity. The company’s manufacturing presence spans across 10 states and 15 manufacturing units. Dalmia Cement (Bharat) Limited, a subsidiary of Dalmia Bharat Limited, boasts one of the lowest carbon footprints in the global cement industry and is committed to various sustainability initiatives.
