Dalmia Bharat announces sales volume increase 6% for Q1 of 2018 fiscal year

2017-09-11

Sep. 11, 2017 - Dalmia Bharat Limited announced its unaudited consolidated financial results for the Quarter ended June 30, 2017 last month.

Key Highlights for the quarter

The Company earned the highest ever EBITDA of Rs.557 crore & EBITDA per tonne of Rs.1,405 for the quarter. The EBITDA/tone is highest among the peers.

The Company during the quarter repaid debt of Rs.329 crore. Consequently, cost of debt reduced from 8.7% to 8.3% on QoQ basis.

Net Debt to EBITDA reduced from 2.8x to 2.4x on QoQ basis as Net Debtreduced to Rs.4,602 crore, from Rs.5,241 crore on QoQ basis. 

Financial Performance

The Company delivered a strong performance led by focused brand building and cost optimization despite higher petcoke prices. Our sales volume grew 6%on YoY basis and market share in our serving regions increased from 8.6% to 9.2%YoY.

The variable cost was higher on YoY basis on account of increase in petcoke prices. However, on a QoQ basis, the company was able to moderate itsvariable costs by 6% to Rs.1,396/tonne. This was led by improving the clinker productivity and optimizing the fuel mix with lowered consumption of imported pet coke from 62% in Q4 FY17 to 55% in Q1FY18. The Company maintained its power consumption at 69 kwh/T of cement.

Our corporate restructuring process is underway and we expect to complete it within this financial year.

Outlook

We expect cement demand to be strong due to concerted efforts by the Central and State Governments on Infrastructure development and affordable housing.

Dalmia Bharat has invested in building capabilities and is expected to further sweat the assetsand improve utilization, creating value for all our stakeholders.