Dalmia Bharat (DALBHARAT) Q4 14/15 earnings summary

Executive summary

• Consolidated gross revenue rose 17% YoY to ₹3,998.62 crore and operating EBITDA increased 29% to ₹607.03 crore; net profit was ₹3.05 crore versus a ₹8.42 crore loss in FY14.

• Capacity reached 24 MnT after a decade of rapid expansion and acquisitions; the strategic focus shifted to asset utilisation, cost control and balance-sheet strengthening.

Financial highlights

• Consolidated net revenue was ₹3,514.12 crore versus ₹3,015.82 crore; other income rose to ₹93.34 crore from ₹69.65 crore.

• Operating EBITDA increased to ₹607.03 crore from ₹472.34 crore; EBITDA margin rose to 17.27% from 15.66%.

• Consolidated net profit was ₹3.05 crore versus a loss of ₹8.42 crore; basic EPS was ₹0.38 versus a loss per share of ₹1.04.

• Cement production and sales volume each rose 5% YoY, to 7.01 MnT and 7.02 MnT, respectively.

• Financial charges rose 38% to ₹434.38 crore, while depreciation increased 12% to ₹271.58 crore following new facility commissioning.

Outlook and guidance

• No further capacity investment planned until the balance sheet is strengthened; priorities are higher utilisation, operating surpluses and progressive monetisation of investments.

• Management expected existing capacity and geographic diversification to benefit from infrastructure and housing demand as India’s economic recovery progresses.

• Continued cost optimisation, inter-plant benchmarking, best-practice sharing and logistics improvements were identified as priorities.