Dalmia Bharat (DALBHARAT) Q4 09/10 earnings summary

Executive summary

• FY10 profit rose sharply, with profit on land sale of Rs 2,283,168 contributing to earnings; a major demerger was planned to take effect from 1 April 2010.

• No dividend was recommended to conserve resources.

Financial highlights

• Total income was Rs 2,319,366 vs Rs 37,188 in FY09; FY10 included Rs 2,283,168 profit on land sale and Rs 36,198 fixed-deposit interest.

• Profit before tax was Rs 1,195,718 vs Rs 25,825; tax provision was Rs 198,000 vs Rs 2,700, and profit after tax was Rs 997,718 vs Rs 23,125.

• Filing fees were Rs 1,097,900 vs Rs 600; total expenditure was Rs 1,123,648 vs Rs 11,363.

Outlook and guidance

• A restructuring scheme provided for demerging certain undertakings effective 1 April 2010 and issuing one Rs 2 share for each Rs 2 share held in Dalmia Cement (Bharat) Limited.

• The Board sought approval to issue 8,09,39,303 equity shares under the scheme, increasing issued and paid-up capital by Rs 16.19 crore; the shares would rank pari passu with existing shares.