Dalmia Bharat (DALBHARAT) Q2 24/25 earnings summary

Executive summary

• Achieved 8.4% year-over-year volume growth in Q2 FY25 to 6.7 MnT, despite weak industry demand and discontinuation of the Jaypee tolling arrangement.

• Revenue declined 2% year-over-year to INR 3,087 crores, with Q2 FY25 profit at Rs. 49 crore and EBITDA at Rs. 434 crores (Rs. 650 per ton).

• Interim dividend of Rs. 4 per share declared; received Rs. 320 crores from stake sale in refractory business.

• Renewable energy share in energy mix at 39%, with total RE capacity at 202 MW and target of 341 MW by FY25 end.

• Board approved unaudited consolidated and standalone financial results for Q2 and H1 FY25, with no material misstatements.

Financial highlights

• Q2 FY25 revenue: INR 3,087 crores, down 2% YoY; H1 FY25 revenue: INR 6,708 crores.

• Q2 FY25 profit: Rs. 49 crore; H1 FY25 profit: Rs. 194 crore.

• EBITDA for Q2 FY25: Rs. 434 crore (Rs. 650/T); H1 EBITDA: Rs. 1,100 crore.

• Net debt at Rs. 644 crore as of Sep'24; net debt/EBITDA at 0.25x.

• Basic EPS from continuing operations for Q2 FY25: Rs. 2.46.

Outlook and guidance

• Targeting 9% volume growth for FY25, aiming to grow at 1.5x industry rate.

• H2 expected to see demand and price improvement, though competitive intensity may cap gains.

• Operational renewable energy capacity expected to reach 341 MW by FY25 end; RE100 by 2030 and carbon negative by 2040.

• Long-term plan to reach 75 million tons capacity by FY28 and 100 million tons by FY31.

• Management expects recovery of pending industrial subsidy from West Bengal, following favorable court orders.