India: Dalmia Bharat Group's cement business shows impressive q-o-q results in Q3FY'24
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Financial Performance:
1. EBIDTA and PAT on a rise q-o-q: Dalmia Bharat Group's cement business reported a quarterly increase of 31.6% in EBIDTA to INR 775 crores (INR 589 crores). Similarly, on a yearly comparison, it rose by 20.3% against INR 218 crores.
The company's Profit after Tax (PAT) also spiked to INR 266 crores in Q3 as against INR 123 crores a quarter ago. The increase on the yearly comparison was a decent 22.0% against INR 218 crores.
2. Gross Debt reduces q-o-q: The company's gross debt got reduced to INR 4,929 crores in Q3 compared with the previous quarter's INR 5,294 crores.
Operational Performance:
1. Sales volumes increase q-o-q: The company's sales volumes increased by around 9.7% to 6.8 mnt in Q3 compared with the previous quarter. On an annual note, the same was up by 7.9% against 6.3 mnt.
2. Installed capacity increases by 2% q-o-q: The company's installed capacity increased to 44.6 mnt in Q3, up by 2.1% compared with 43.7 mnt in Q2. Also, it has increased by around 15.5% against 38.6 mnt at the end of FY'23.
The 0.9mtpa Belgam unit has been commissioned in this quarter and 1 mtpa capacity plant for each Kadapa and Ariyalur will be commissioned soon.
3.Operational cost remains stable: Operational costs remained stable on a q-o-q basis, with the cost per tonne holding steady at INR 4,147/t in Q3, compared to INR 4,153/t in the preceding quarter.
In terms of raw material costs, there was a marginal decrease of 0.6% q-o-q, amounting to INR 781/t in 3QFY'24, as opposed to INR 785/t in 2QFY'24. However, this cost maintained stability at current levels on an annual basis.
Power and fuel costs exhibited a decline of 3.3% q-o-q, reaching INR 1,102/t in 3QFY'24, down from INR 1,140/t in 2QFY'24. On an annual basis, this represented a notable decrease of 22.8% from INR 1,427/t.
Conversely, logistics costs experienced a 6.5% q-o-q increase to INR 1,091/t in 3QFY'24, up from INR 1,024/t in 2QFY'24. Nevertheless, on an annual basis, there was a modest decrease of 2.1% q-o-q from INR 1,114/t.
