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Illustration: Ajay Mohanty
Cement producer Dalmia Bharat reported an 8 per cent rise in its profit after tax (PAT) attributable to the owners of the company in the June 2024 ended quarter. The company said the quarter also included a one-time provision related to its impending deal with Jaiprakash Associates.
For the quarter under review, Dalmia Bharat reported a PAT of Rs 141 crore, up from Rs 130 crore a year ago. Income from operations was flat at Rs 3,621 crore. Reported PAT, the company said, was flat at Rs 145 crore, against Rs 144 crore a year ago.
The exceptional items for the quarter, the company said, also include an impact of Rs 84 crore on account of a one-time provision being created with Jaiprakash Associates, which is undergoing insolvency proceedings.
Earnings before interest, taxation, depreciation and amortisation (Ebitda), the company said, increased 9.2 per cent to Rs 669 crore.
The company said its installed cement capacity at present stands at 46.6 million tonnes per annum (MTPA). In the quarter under review, cement sale volumes rose 6.2 per cent to 7.4 MTPA. The company said, during the quarter, even though cement demand was weak across regions amidst general elections, its own volumes and margins have improved.
The company said it has added 2 MTPA of cement capacity in South India and is on track to add another 2.9 MTPA in the North East and East region during the current financial year. The company reiterated its long-term growth strategy of increasing the total capacity to 110-130 MTPA by 2031.
In FY23, Dalmia Bharat had signed definitive agreements with Jaiprakash Associates (JAL) to acquire identified cement assets and the same was awaiting the JAL lenders’ approval. However, during the June 2024 quarter, the National Company Law Tribunal admitted JAL into the Corporate Insolvency Resolution Process. A public announcement inviting claims from operational and financial creditors of JAL has been made, and Dalmia Bharat said it has accordingly filed its claim with the resolution professional and is awaiting further progress in the matter.
On cement demand and price outlook, the management noted, “The continuity of the incumbent government at the Centre ensures policy stability and a continued focus on infrastructure spending, which bodes well for the cement sector’s long-term prospects,” said Puneet Dalmia, managing director and chief executive officer of the company.
Dharmender Tuteja, chief financial officer of the company, said, “The cement pricing continued to be weak during the quarter, but we saw a notable improvement in margins due to better input prices and reversal of certain cost inefficiencies of the previous quarter.”
First Published: Jul 18 2024 | 7:19 PM IST
