Dalmia Bharat gains on strong Q1 results

The stock up 3% at Rs 1,526 after the company reported 76% YoY rise in net profit at Rs 92 crore for Q1FY17,

Dalmia Bharat was trading higher by 3% at Rs 1,526 on the BSE after the company reported a strong 76% year on year rise in consolidated net profit at Rs 92 crore for the quarter ended on June 30, 2016 (Q1FY17), on the back of strong operational performance. The cement maker had registered a profit of Rs 53 crore in the same period of last year.

Total income from operations increased to Rs 1,777 crore in Q1FY17 compared to Rs 1,609 crore in the year-ago period.

The company’s EBITDA (earnings before interest, depreciation and taxes) margin expanded 400 basis points to 29% from 25%.

Dalmia Bharat expect cement demand to gain momentum supported by good monsoon, implementation of seventh pay commission recommendations and focused thrust by Government on infrastructure development and housing.

The company strengthened product portfolio by launching super-premium cement 'Dalmia DSP' in Eastern region. This is a step further in formation of overarching umbrella branding 'Dalmia', it added.

The stock hit an intra-day high of Rs 1,531, nears to its record high of Rs 1,532 touched on Wednesday in intra-day trade. A combined 50,172 shares changed hands on the counter in first 25 minutes of trading on the BSE and NSE.