Dalmia Bharat releases Q1 FY25 results

Commenting on the performance, Mr. Puneet Dalmia, Managing Director & CEO – Dalmia Bharat Limited, said, “The continuity of the incumbent government at the Centre ensures policy stability and a continued focus on infrastructure spending, which bodes well for cement sector's long-term prospects, particularly cement demand. During the quarter, even though cement demand was weak across regions amidst general elections, our volumes grew 6.2% YoY while margins improved to 18.5% from 16.9% last year.”

Mr. Dharmender Tuteja, Chief Financial Officer – Dalmia Bharat Limited, said “The cement pricing continued to be weak during the quarter, but we saw a notable improvement in margins due to better input prices and reversal of certain cost inefficiencies of the previous quarter. We are progressing well on the long-term levers of margin improvement including investment in brand, renewable energy and operationalizing captive coal mines.” He also said, “We have added 2 million t of cement capacity in South and are on track to add another 2.9 million t in North East & East region during FY25. Our strong balance sheet positions us well for the next phase of expansion.”

Key updates

Commissioned 1 MnT cement capacity each at its existing units at Ariyalur, Tamil Nadu and Kadapa, Andhra Pradesh respectively. This takes company’s overall installed capacity to 17 million t in South and 46.6 million t in India, and is in line with the long-term growth strategy of increasing the total capacity to 110 – 130 million t by the 2031.

In line with the commitment towards RE100 by 2030 & Carbon Negative by 2040, Dalmia Cement (Bharat) Limited, a wholly owned subsidiary of the Company, has entered into multiple Renewable Power Agreements under the Group Captive, which will secure 127 MW of renewable power through Solar and Wind energy. The commissioning of these Renewable power plants is expected to be in FY25 & FY26.

Key recognitions during the quarter

• Recognised with CDP Leadership Award (CDP Discloser 2023, Climate) for its commitment to environmental stewardship.
• Recognised as the Supply Chain Champion for the Northern Region at the ISCM Supply chain rankings of the 2nd India Supply Chain Leaders Senate 2024.
• Won the Procurement Excellence of the Year at the 2nd Procure Connect Confex & Awards 2024.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/18072024/dalmia-bharat-releases-q1-fy25-results/