Dalmia Bharat declines after weak Q4 performance

Dalmia Bharat slipped 1.41% to Rs 1435 after the company reported 6.4% decline in consolidated net profit to Rs 599 crore in Q4 FY22 from Rs 640 crore in Q4 FY21.

Income from operations increased by 7.3% YoY to Rs 3,380 crore during the quarter. Sales volume rose by 3.1% to 6.6 million tons in Q4 FY22 from 6.4 million tons in Q4 FY21.

EBITDA declined by 11.1% to Rs 683 crore in Q4 FY22 from Rs 768 crore in Q4 FY21. EBITDA margin in Q4 FY22 was 20.1% as compared with 24.3% in Q4 FY21.

Profit before tax in Q4 FY22 stood at Rs 360 crore, down by 14.3% from Rs 420 crore in Q4 FY21.

The company reported 2.2% fall in consolidated net profit to Rs 1,160 crore despite a 11.6% increase in income from operations to Rs 11,286 crore in FY22 over FY21.

Puneet Dalmia, managing director - Dalmia Bharat Limited, said, With an objective to create a globally respected professional organization we have, during the year, undertaken several transformation measures from laying down a formal capital allocation framework, formalizing our growth target of 110-130Mnt, appointing Big five as Internal & Statutory auditors, to creating a formal risk management policy and framework amongst several other initiatives.

Though the year witnessed unprecedented cost challenges and demand volatility, we have done exceedingly well in our growth and transformation journey.

Mahendra Singhi, managing director and CEO - Dalmia Cement (Bharat), said, Through proactive cost containment measures, our teams have successfully mitigated the adverse inflationary impact and delivered one of the lowest total cost per ton of cement alongside a volume growth in-line with the industry.

The recent strong recovery in demand and prices across all our operating regions is highly encouraging. While the margins may continue to remain under pressure, we are undertaking proactive measures to retain our cost leadership and deliver sustainable earnings growth.

We continue to be on track to reach capacity of 48.5 million ton by March '24.

Dalmia Bharat is the fourth-largest cement manufacturing company in India, with the current capacity pegged at 35.9 million tons.

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