Odisha Cement Limited (to be renamed as Dalmia Bharat Limited) announced its unaudited consolidated financial results for the Quarter and nine months ended December 31, 2018.

Key Highlights:

Listing of Amalgamated Entity Completed

Shares of the combined entity got listed on both NSE & BSE during Jan 2019 under the company name Odisha Cement Limited (Stockcode: NSE – DALBHARAT & BSE – OCLINDIA)
The process to change the name of the company from Odisha Cement Limited to Dalmia Bharat Limited is underway and is expected to be completed soon

Capacity Update

East Project on Track

Murli hearing at the NCLT is expected in Feb 2019
Trial Production is underway in DDSPL (erstwhile known as the Kalyanpur Cement). We are stabilizing the plant and are expecting it to achieve 60 – 70% CU by end of FY20.

Receipt of Incentives

Incentives received Rs. 504 cr. during nine months FY19

Repayment of Gross Debt

Reduction of Rs. 388 cr during the quarter and Rs. 543 cr till date

Operational Performance

The company registered volume growth of 8% and 11% YoY respectively in Q3 FY19 and nine months FY19.

Our variable Cost per ton has risen 4% and 13% YoY respectively for Q3FY19 and nine months FY19. This is mainly on account of increase in rate of slag and petcoke. There has been some softening of petcoke and slag prices during the Q3FY19, but the benefit of this is expected to flow through with a lag in Q4FY19 and onwards. The company is continuing to optimize the product mix through increased production of Portland Composite Cement in the overall product mix and it is now almost 15% in Q3FY19 as against 11% in Q2FY19.

The company has started to realise benefits from the installed WHRS capacity and with the planned expansion of WHRS, we can expect to achieve additional savings once the planned capacity gets fully commissioned and operational.

The logistics costs per ton increased 14% and 9% YoY respectively for Q3FY19 and nine months FY19. This is mainly on account of the steep increase in diesel prices. Our Lead distance continues to remain less than 300 which is one of the lowest in the Indian Cement industry and we are building our focus on digitization to further optimize our logistics costs.

As a company we continue to strengthen our portfolio of premium brands and share of FBC & DSP is 12% of Trade Sales in Q3’FY19 as against 10% in Q3’FY18.

Outlook

The demand growth continues to be robust on the back of low cost housing projects, road construction & other infrastructure development projects. The Union Budget announced is a progressive one with a larger focus of the government on infrastructure development, railways, revival of the real estate sector and improving hygiene and increasing consumption.

About Dalmia Bharat Group

Dalmia Bharat Group www.dalmiabharat.com is a leading Indian conglomerate with a strong presence in Cement, Sugar and Refractories. The Group has a turnover of over 10,000 crore. Dalmia Bharat commenced operations in 1939 and has played a defining role in India’s manufacturing sector. The group has significant market presence in each of its sectors of operation. Its cement business has grown exponentially since 2006 in terms of capacity and production and the company is a leader in the specialty cements space. Dalmia Cement is the world’s greenest cement company with the lowest carbon footprint. In sugar, the group is a prominent generic player catering to most of the leading businesses in India. The Group also caters to an enduring and growing customer base in the refractories business and has forayed into sustainable power/energy.