Dalmia Bharat slides after Q4 PAT slumps 90%

Dalmia Bharat fell 1.29% to Rs 556.25 after consolidated net profit dropped 90.87% to Rs 24 crore on 12.63% fall in income from operations to Rs 2,483 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax (PBT) tanked 75.37% to Rs 65 crore in Q4 March 2020 as against Rs 264 crore in Q4 March 2019. Current tax expenses slumped 70.32% to Rs 27 crore in Q4 March 2020 as against Rs 91 crore paid in Q4 March 2019. The Q4 earnings were announced on Saturday, 13 June 2020.

Consolidated sales volumes slipped 7.18% to 5.17 million tonnes in Q4 FY20 from 5.57 million tonnes in Q4 FY19. EBITDA skid 21.72% to Rs 508 crore in Q4 FY20 as compared to Rs 649 crore in Q4 FY19. Net debt to EBITDA ratio improved to 1.34 in Q4 March 2020 as against 1.61 in Q4 March 2019.

The company said it has bought back 53.10 lakh equity shares amounting to Rs 271 crore. Total amount earmarked for buyback is Rs 500 crore.

Due to COVID-19 outbreak, the expansion of grinding units in the East is delayed by six months. The firm has received requisite approval for the acquisition of Murli Industries. Clinker line at Rajgangpur (Odisha) commenced trial run production.

In its outlook, Dalmia Bharat said that the ground situation across industries is grim and it would take some time for consumption to pick up. Although the government has announced stimulus package, the turnaround would still take time. The firm anticipates that the cement industry could witness de-growth during the current fiscal year.

Dalmia Bharat is a cement manufacturing company based in India. Its segments include cement, refractory and power. The firm's products include Portland Slag Cement (PSC), Portland Pozzolana Cement (PPC) and Portland Composite Cement (PCC).

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