Dalmia Bharat Limited announced its audited consolidated financial results for the quarter and full year ended March 31, 2020.

Key Highlights:

Requisite approval received for Murli Industries acquisition
Clinker Line at Rajgangpur commenced trial run production
Due to outbreak of Covid19, the expansion of grinding units in East is delayed by six months respectively
Share buyback completed so far for 53.10 lac shares amounting to Rs. 271 Cr. Total amount earmarked for buyback is Rs. 500 Cr
Rs. 203 Cr of incentives received during the quarter and Rs. 409 Cr during FY20

Operational Performance

The company achieved an EBITDA/T of Rs. 1072/T and a volume growth of 3% on YOY basis during FY20. The EBITDA grew by 8% during the year to 2106 Cr. The demand growth during the year was supported by the East & North East markets while there was demand contraction in the Southern market. At an industry level, FY20 has been a weak year in terms of demand with overall cement demand contracting by 1%.

The pricing has largely remained flat on average during the year for our markets. On the cost side, our variable cost has improved YOY because of both raw material and power & fuel. This was mainly on account of favourable prices of slag and petcoke respectively during the year. With the trial run production beginning at the new clinker line at Rajgangpur, our reliance on purchased clinker should diminish going forward. Freight costs have however remained flat during the year on YOY basis.

As a company, the safety & welfare of our people is of prime importance and hence we have taken all precautionary measures with respect to the same. Post the partial lifting of the lockdown due to Covid19, we have restarted production at all our plants with the requisite permissions and safeguards in place. While the month of April was a washout due to lockdown, the demand revival has been encouraging during May 2020. All through this downturn, the focus of our management has been well-being of our people and maintaining solvency of the business by conserving cash. We have maintained continuous communication with all stakeholders through digital means and set up critical response teams for the fast changing situations. Our teams are engaged in multiple wellness and learning activities for all our stakeholders and numerous welfare activities for the local communities.

Outlook

The on ground situation across industries is grim and it may take some time for consumption to pick up. While the government has announced stimulus package, the turnaround will still take time. We anticipate that the cement industry could witness demand de-growth during the current financial year.

About Dalmia Bharat Ltd.

Dalmia Bharat Limited (DBL) (BSE/NSE Symbol: DALBHARAT), is a pioneer in cement manufacturing since 1939. With a growing capacity, currently pegged at 27 MTPA, DBL has the fourth largest cement manufacturing capacity in the country. Spread across nine states and 12 manufacturing units, the company is a category leader in super-specialty cements used for oil well, railway sleepers and air strips and is the country’s largest producer of slag cement. It has been globally ranked no. 1 by CDP (formerly Carbon Disclosure Project) for business readiness of lowest carbon transition. DBL also has the lowest carbon footprint in the cement world, globally. It is the first cement Company across the globe to join RE 100 and EP 100 – showing real business leadership in the clean energy transition by taking a joined-up approach. Visit us at Dalmia Bharat