Dalmia Bharat (DALBHARAT) Q4 17/18 earnings summary

Executive summary

• FY18 cement volumes rose 11% to 16.96 MnT, while cement capacity reached 25 MnT; consolidated profit improved sharply, with debt and leverage also declining.

• Amalgamation schemes took effect on Oct. 26 and Oct. 30, 2018, consolidating the listed structure and manufacturing operations; FY17 comparatives were restated from the Jan. 1, 2015 appointed date.

Financial highlights

• Consolidated revenue from operations was Rs. 8,828 crore vs. Rs. 8,340 crore; FY18 is not directly comparable because GST replaced excise duty and most indirect taxes from July 1, 2017.

• EBITDA was Rs. 2,014 crore vs. Rs. 1,895 crore; EBITDA margin declined 190 bps to 23.5% from 25.4%.

• Consolidated PBT rose to Rs. 389 crore from Rs. 108 crore; PAT was Rs. 292 crore vs. Rs. 44 crore, and finance costs fell 20% to Rs. 690 crore.

Outlook and guidance

• Cement demand was projected to grow 8% in FY19 and FY20, with attractive double-digit consumption growth expected in Eastern India.

• An 8 MnTPA Eastern India cement expansion, with Rs. 3,720 crore investment, was planned for completion within 24 months after statutory and regulatory clearances; funding expected through debt and equity.

• Plans included an additional 30 MW waste heat recovery system, taking renewable power capacity beyond 50 MW; annual water harvesting target was 5x consumption by 2020.