Dalmia Bharat Limited reports sales volume up 11% in nine months FY19

2019-02-07

Feb. 07, 2019 - Odisha Cement Limited (to be renamed as Dalmia Bharat Limited) announced its unaudited consolidated financial results for the Quarter and nine months ended December 31, 2018. The company registered volume growth of 8% and 11% YoY respectively in Q3 FY19 and nine months FY19.

Our variable Cost per ton has risen 4% and 13% YoY respectively for Q3FY19 and nine months FY19. This is mainly on account of increase in rate of slag and petcoke. There has been some softening of petcoke and slag prices during the Q3FY19, but the benefit of this is expected to flow through with a lag in Q4FY19 and onwards. The company is continuing to optimize the product mix through increased production of Portland Composite Cement in the overall product mix and it is now almost 15% in Q3FY19 as against 11% in Q2FY19.

The company has started to realise benefits from the installed WHRS capacity and with the planned expansion of WHRS, we can expect to achieve additional savings once the planned capacity gets fully commissioned and operational.

The logistics costs per ton increased 14% and 9% YoY respectively for Q3FY19 and nine months FY19. This is mainly on account of the steep increase in diesel prices. Our Lead distance continues to remain less than 300 which is one of the lowest in the Indian Cement industry and we are building our focus on digitization to further optimize our logistics costs.

As a company we continue to strengthen our portfolio of premium brands and share of FBC & DSP is 12% of Trade Sales in Q3’FY19 as against 10% in Q3’FY18.