Dalmia Bharat Q2 Results: Profit Falls 60%; Declares Rs 4 Per Share Dividend

Dalmia Bharat Ltd. reported a 60.2% year-on-year fall in its consolidated net profit for the September quarter. Net profit for the quarter ended September 2024 was at Rs 49 crore, compared to Rs 123 crore in the year ago quarter, according to an exchange filing.

The cement maker's consolidated revenue fell 2.1% on year to Rs 3,087 crore as against Rs 3,153 crore in the previous fiscal, the company said in the filing. Operating profit or earnings before interest, tax, dividend, depreciation, and amortisation (Ebitda) fell 26.8% to Rs 434 crore from Rs 593 crore a year ago, while Ebitda margin narrowed to 14.1% from 18.8% in the reporting quarter a year ago.

In line with its capital allocation framework, the company has also declared an interim dividend of Rs 4 per share with the record date set on Oct. 26.

"We delivered a strong volume growth of 8.4% YoY in Q2 FY25," the company said. "However, the continuous and unprecedented softness in cement prices resulted in revenue declining 2.1% to Rs 3,087 crore and Ebitda falling 26.8% YoY to Rs 434 crore for the quarter."

"While external challenges weighed on profitability, we remain focused on long-term cost drivers for margin improvement,” it added.

The company also said that it believes that as India grows, the cement sector, being a proxy, will continue to flourish. "We are actively working to announce our Phase II expansions within the next nine months and achieve our interim milestone of 75 million tonne by fiscal 2028,” it said.

During the first half of the current fiscal, net profit fell 27.3% year-on-year to Rs 194 crore and revenue fell to Rs 6,708 crore from Rs 6,780 crore. The company said, "H1 FY25 includes an impact of 84 crore on account of one-time provision being created with Jaiprakash Associates Ltd. undergoing insolvency proceedings."