The New Delhi-based company clocked in a net profit of Rs 49 crore for the quarter, down more than 60% on year, while income from operations was more than 2% lower at Rs 3,087 crore.
Even though it sold 6.7 million tonne of cement during the quarter – over 8% higher as compared to the previous year – earnings before interest, tax, depreciation and amortization fell nearly 27% on year to Rs 434 crore.
“…the continuous & unprecedented softness in cement prices resulted in revenue declining 2.1% to Rs 3,087 Cr, and EBITDA falling 26.8% YoY to Rs 434 Cr for the quarter,” chief financial officer Dharmender Tuteja was quoted in a release.
The operating profit made by the company on each tonne of cement sold fell by nearly a third to 650 rupees.
Dalmia Bharat currently has the capacity to produce 46.6 million tonne of cement each year, and is the fourth largest player in the country with 15 manufacturing units across 10 states. It plans to increase its capacity to 49.5 million tonne by the end of the current fiscal, and 75 million tonne by 2027 – 28 (Apr-Mar).“India’s economic resilience with Government’s sustained thrust on building infrastructure and promoting manufacturing sector, underpins my conviction in the India growth,” chief executive officer Puneet Dalmia said. “I believe that as India grows, cement sector being a proxy, will continue to flourish.”The company had a net debt of Rs 644 crore as on September-end, and a net-debt to EBITDA ratio of 0.25 times. It announced its earnings on Saturday, and has also declared a dividend of Rs 4 per share. End
