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Dalmia Bharat tanks over 8% after Q4 results miss estimates
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The company reported a 47.5% year-on-year decline in consolidated net profit to ₹320 crore for the three months ending March 2024, as compared to ₹609 crore in the corresponding period of the previous year.
Dalmia Bharat shares plummeted more than 8% on Thursday a day after the cement producer reported weak earnings for the fourth quarter of FY 2023-24.
In an exchange filing on April 24, Dalmia Bharat announced its fourth-quarter results.
The company reported a 47.5% year-on-year decline in consolidated net profit to ₹320 crore for the three months ending March 2024, as compared to ₹609 crore in the corresponding period of the previous year. However, its revenue from operations experienced a 10% year-on-year increase to ₹4,307 crore, up from ₹3,915 crore in the same period of the preceding fiscal.
The company missed the projections on PAT as a CNBC-TV18 poll had estimated the profit to rise 10% to ₹776 crore. The revenue also remained lower than the poll estimates of ₹4,125 crore for the quarter under review.
Following the weak Q4 results, shares of Dalmia Bharat plunged as much as 8.49% to a low of ₹1,796 apiece on the BSE in morning trade on Thursday. However, the stock recovered some losses to trade 8.2% lower at 1,798.5 apiece on the BSE at 12:32 pm.
Dalmia Bharat saw an 11.8% year-on-year growth in volumes. However, at the operating level, Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) fell to ₹654 crore in the January-March 2024 quarter, down from ₹710 crore in the previous quarter.
Puneet Dalmia, Managing Director and CEO, Dalmia Bharat Limited, said, “During FY24 we delivered a volume growth of 11.8% at 28.8Mnt and EBITDA growth of 13.4% at ₹2,639 crore. We will continue to work on gaining market share and improving realisations while deepening the cost leadership.”
Dharmender Tuteja, chief financial officer, Dalmia Bharat Limited, said “We bounced back and delivered an industry-leading volume growth of 18.5% YoY during the quarter. However, unexpected drop in cement prices led to EBITDA erosion during the quarter with EBITDA margin declining from 18.1% in Q4’23 to 15.2% in current quarter.”
Dalmia Bharat’ current capacity is pegged at 44.6 million metric tonnes (MnT). Dalmia Bharat, including its subsidiaries, is the fourth-largest cement manufacturer in India by installed capacity. The company’s manufacturing footprint spans 10 states and includes 15 manufacturing units.
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