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Indian cement manufacturing company, Dalmia Bharat, reported a significant surge in its net profit for the second quarter of fiscal year 2024 (Q2FY24), which rose by 161.7% to ₹123 crore ($16.5 million). The increase was primarily driven by power and fuel cost savings, as stated by CEO Mahendra Singhi on Monday.
The company’s revenue also saw a 6% increase, reaching ₹3,149 crore ($422 million), while its EBITDA soared by 55% to ₹589 crore ($79 million). These improvements were attributed to reduced fuel prices, increased use of renewable power, and improved key performance indicators (KPIs).
In the first half of the fiscal year, Dalmia Bharat commissioned 5.1 million tonnes of cement in the East and South region and 0.5 million tonnes of clinker capacity. This contributed to a 6% annual sales increase to 6.2 million tonnes for the September quarter.
Commercial production has also begun at the new Greenfield Cement Grinding unit at Sattur, with a capacity of 2 million tonnes. Additionally, a proposal has been approved for a ₹91 crore ($12.2 million) project to increase cement grinding capacity by 0.5 million tonnes at Rohtas Cement Works, expected to be completed in FY25.
As part of its growth strategy, Dalmia Bharat has added a substantial 17.2 million tonne cement capacity over the last three and a half years – a growth of approximately 65% over FY20 capacity. The company aims to achieve a total capacity of 110-130 million tonnes by 2031.
Despite the positive financial results, Dalmia Bharat’s shares settled slightly lower on Monday, closing 0.38% lower at ₹2,293 per share. The company declared an interim dividend of ₹4 per share and reported a reduced carbon footprint of 456 kg CO2/ton.
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