Dalmia Bharat (DALBHARAT) Q4 18/19 earnings summary

Executive summary

• FY19 marked completion of restructuring and amalgamation into one listed entity, simplifying the structure and consolidating cement, refractory and power operations under one operating subsidiary.

• Installed capacity reached 26.5 MTPA, with 18.68 MT sales volume and 10% annual volume growth; net sales rose 11% to ₹9,484 Cr per the operational review.

• Consolidated revenue from operations was ₹9,484 Cr, up 7.44% from ₹8,827 Cr; consolidated PAT was ₹349 Cr, with ₹308 Cr attributable to equity holders.

Financial highlights

• Consolidated EBITDA was ₹1,942 Cr; EBITDA per tonne was ₹1,009 vs ₹1,198 in FY18.

• Consolidated PBT fell 12.85% to ₹339 Cr from ₹389 Cr; PAT before associate/JV and minority interests rose to ₹349 Cr from ₹291 Cr.

• Consolidated operating cash flow was ₹2,090 Cr vs ₹1,606 Cr; capital expenditure on property, plant and equipment and intangibles was ₹1,334 Cr.

• Standalone revenue was ₹164 Cr vs ₹125 Cr, PBT ₹119 Cr vs ₹94 Cr and PAT ₹101 Cr vs ₹72 Cr.

Outlook and guidance

• Targeting ~37 MTPA capacity by FY21, ~40% above FY19, with ~7.8 MT of brownfield projects and ~3 MT from acquisitions.

• East India capacity expansion from 10.4 MT to 18 MT entails ~₹3,200 Cr investment; clinker line and nearly half the grinding capacity were expected by March 2020, with full capacity by March 2021.

• Planned FY21 renewable generation capacity was ~50 MW; plans included no new thermal installations and increased use of solar and waste-heat recovery power.

• Domestic cement demand was forecast to grow ~8% in FY20, with incremental demand of ~22–26 MT expected to exceed incremental supply.