Dalmia Bharat (DALBHARAT) Q3 24/25 earnings summary

Executive summary

• Volumes grew 2% YoY to 6.7 million tons in Q3 FY25, but sales volume declined 2% YoY; 9M FY25 sales volume grew 4.1% YoY to 20.8 MnT, with Dalmia Plants sales up 3.7% YoY, outpacing industry growth.

• Revenue declined 12% YoY to INR 3,181 crores (₹3,181 crore), mainly due to lower cement prices, but improved 3% sequentially from Q2 as prices stabilized in December.

• EBITDA for Q3 FY25 was INR 511 crores, down 34.5% YoY, with margin at 16.1%.

• Cost control initiatives, improved product mix (premium products at 24.2%, trade mix at 66%), and renewable energy initiatives supported margins.

• Net Debt/EBITDA stood at 0.55x as of Dec'24, reflecting a strong balance sheet.

Financial highlights

• Raw material cost declined 2% YoY to INR 765/ton; power and fuel cost down 9% YoY to INR 1,005/ton; logistics cost rose 2.7% YoY to INR 1,120/ton.

• Depreciation increased 8.3% sequentially to INR 354 crores due to equipment replacement and accelerated charges.

• Incentives accrued at INR 102 crores in Q3, with full-year accruals expected at INR 325 crores.

• Finance cost for Q3 FY25 was Rs 101 Cr, with cost of borrowing at 7.8%.

• Consolidated profit after tax for the quarter was ₹66 crore, and for nine months, ₹260 crore.

Outlook and guidance

• Cement demand expected to grow 6%-7% YoY in Q4, leading to full-year growth of 3%-4% YoY.

• CapEx for FY25 projected at INR 3,000 crores, with next year’s CapEx in the INR 2,500–3,000 crore range.

• Cost reduction target of INR 150–200/ton by FY27 remains on track, driven by internal initiatives.

• Operational renewable energy (RE) capacity, including group captive, is expected to reach 267 MW by end of FY25.

• The company continues to evaluate contingent liabilities related to mineral royalty following a Supreme Court judgment, with an estimated present value of ₹145 crore.