Dalmia Bharat Limted

Dalmia Bharat is engaged in the business of Manufacturing and Selling of Cement. The company was started in 1939 and is the 4th largest cement manufacturer by installed capacity in India. Founded in 1939 by Late Shri Jaidayal Dalmia, Dalmia Bharat Group is one of the Fastest Growing and Most Profitable Groups in India. Dalmia Bharat Ltd. is 4th largest cement manufacturing company in India and Dalmia Bharat Sugar Ltd. is one of the fastest growing cane based multi-product companies.

Key Products

• Dalmia Cement
• Dalmia DSP
• Dalmia Supreme
• Konark Cement
• Dalmia Infra Pro
• Dalmia Insta Pro

Shareholding Pattern

• PUBLIC GROUP
• PROMOTER GROUP

Financial Summary

Synopsis of Financials

• Revenues increased by 10% YoY in Q4 and 8.4% YoY for the full year.
• EBITDA declined by 7.8% YoY in Q4 but increased by 13.4% YoY for the full year.
• Trade sales were 65% in Q4, premium products at 21%, and blended sales at 87%.
• Green power usage at 28% and fuel mix with pet coke at 56%.
• Expecting further reduction in power and fuel costs in the next quarter.
• Focus on brand building activities and improving cost efficiencies.

Final Outlook

DBL reported revenue growth of 10%YoY, mainly aided by robust growth in volumes (+19%YoY). However, realisation declined by ~7%YoY and expect improvement in cement prices only in H2FY25 due to ongoing election and monsoon quarter. DBL’s strong capacity expansion plans to become a pan-India player (~59MT by FY25E, including JP acquisition, and a long-term target of ~70-75MT by FY27) while maintaining a healthy balance sheet should support a re-rating in valuation.

Margins declined mainly due to drop in realisation – EBITDA declined by 7.5% YoY as EBITDA margin dropped by 290bps YoY to ~15.2% largely due to sharp decline in cement prices (7%YoY).