Dalmia Bharat reports jump in pre-tax profits
Published by Jonathan Rowland,
Dalmia Bharat reported sales volumes up 20% in 4Q16 to 3.56 million t, despite “challenging market conditions”. The Indian cement maker also posted higher earnings and pre-tax profits for the quarter as kiln productivity rose and costs reduced.
The company’s earnings rose 19% to INR4.21 billion (US$62.5 million) on a 16% jump in total income. Pre-tax profit was also up 19% at INR360 million (US$53.4 million).
Variable costs were down 11% in the quarter as the company increased kiln productivity by 13% year on year, while reducing power consumption and increasing its use of lower-cost fuels.
Financial year to date, the company reported sales volumes up 21% at 10.75 million t. Pre-tax profits jumped to INR3.1 billion (US$46.0 million) on earnings up 15% to INR13.5 billion (US$200.5 million).
The company also reported increased market share in the south and northeast Indian markets, where it recently launched its Dalmia DSP premium cement brand. Market share remained steady in the east.
Looking ahead, the company said it was “positively cautious” in the near term and “optimistic” in the medium to long term.
“Improved macro indicators for the economy, significant growth in public spending coupled with focused execution plants supports our view,” the company said. “Structural changes by the central government and plans outlaid by development-focused state governments are expected to spur cement demand growth.”
Read the article online at: https://www.worldcement.com/indian-subcontinent/08022017/dalmia-bharat-reports-jump-in-pre-tax-profits/
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