NEW DELHI, February 7, 2017 /PRNewswire/ --
Dalmia Bharat Limited today announced its unaudited consolidated financial results for the Quarter ended December 31, 2016.
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Particulars (in Rs.) Q3FY17 Q3FY16 Growth 9MFY17 9MFY16 Growth
Sales Volume in (MnT) 3.56 2.96 20% 10.75 8.91 21%
Total Income from Operations 1,967 1,698 16% 5,915 5,153 15%
EBITDA 421 353 19% 1,350 1,081 25%
Profit Before Tax 113 83 36% 436 310 41%
Profit After Tax 36 30 19% 161 95 69%
EBITA (Rs./Tonne) 1,202 1,203 0% 1,264 1,225 3%
EBITDA (Margin) 24.2% 23.6% 56bps 25.9% 23.9% 196bps
Quarterly Performance
The Company delivered strong performance amidst challenging market conditions. Sales volume for the quarter was up 20% YoY led by focused marketing efforts. Our market share in South and North East India improved with the share being maintained in East.
Higher EBITDA is on account of effective costs controls and flexibility in fuel usage and procurement efficiencies. Variable cost at Rs. 1,261 was down by 11% for the quarter on YoY basis.
- Achieved increased efficiencies in procurement of slag
- Power consumption rate at Rs. 4.2 reduced by 22% YoY
- Auxillary power consumption in CPP reduced by 2%
- Explored alternate fuel sourcing and increased usage of low cost fuels
- Kiln productivity increased by 13% on YoY basis
The Company reinforced their commitment towards building strong brand value through launch of Dalmia DSP (super premium cement) in South and North East as well, in the last quarter. This led to increase in advertising spend. However, they are able to contain their fixed costs on per tonne basis supported by higher volumes and focus on keeping other costs in check.
Interest costs have also witnessed reduction of 4% on QoQ basis to 220 cr from Rs. 229 cr. The increase on YoY basis is on account of commissioning of new plants in this year.
Outlook
We are positively cautious in the near term and optimistic from medium and long term view. Improved macro indicators for the economy, significant growth in public spending coupled with focused execution plans supports our view. Structural changes initiated by the Central Government and plans outlaid by development focused state governments are expected to spur cement demand growth. Thrust on affordable housing and infrastructure built-up expect to now witness faster execution through higher budgetary allocation and new schemes announced by the government.
South region is on an improved trajectory. Central government has incentivised the state government (Andhra Pradesh) for its innovative efforts by granting exemption of capital gains tax to land owners who offer their lands under land pooling mechanism; for capital creation. This recent development would provide a big push to cement consumption.
We are committed to create value for all our stakeholders through transparent governance policies, cost optimization and brand equity.
About Dalmia Bharat Ltd.
Dalmia Cement (Bharat) Limited, a subsidiary of Dalmia Bharat Limited (DBL) (BSE Code: 533309|NSE Symbol: DALMIABHA and listed in MSE), part of the Dalmia Bharat Group, is a pioneer in cement manufacturing and applications since 1939. With an expanding India footprint, present in 17 states, the company is a category leader in super-specialty cements used for oil well, railway sleepers and air strips. With a growing capacity, currently pegged at 25 MnTPA, Dalmia Cement is the third largest cement Group in India.
For more information, visit: http://www.dalmiacement.com
Media Contact:
Pooja Bharadwaj
[email protected]
+91-9560166999
Assistant General Manager
Dalmia Bharat Limited
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