Dalmia Bharat (DALBHARAT) Q4 15/16 earnings summary

Executive summary

• FY16 volumes grew 19%, revenue 20% and EBITDA 69% YoY despite challenging conditions; volume growth outpaced cement-industry growth of 5.3%.

• Capacity reached 25 MnT across 11 locations, with effective utilisation close to 60%; operational efficiency and cost control supported profitability.

Financial highlights

• Consolidated net revenue was ₹6,437.95 crore vs ₹3,514.12 crore; reported EBITDA was ₹1,742.82 crore vs ₹695.85 crore.

• Consolidated PAT was ₹190.81 crore vs ₹3.05 crore; diluted EPS was ₹23.22 vs ₹0.37.

• Management-highlighted operating EBITDA was ₹1,579 crore, up 69% YoY; gross turnover was ₹7,328 crore, up 17% YoY.

Outlook and guidance

• Management was optimistic on domestic cement demand as infrastructure activity improved, especially roads; close-to-60% utilisation offered scope to scale with a demand upturn.

• Belgaum and Umrangshu capacity additions were expected to improve operating leverage; surplus cash flows were planned for debt reduction and stronger liquidity.

• Water-neutrality target was extended to all integrated plants by end-CY17; the group also expected higher utilisation, richer mix and cost management to improve efficiency and reduce emissions.