Consolidated Quarterly Result YoY comparison

Net sales (including other operating income) of Dalmia Bharat has declined 0.22% to Rs 2731 crore.  Sales of Cement segment has gone down 0.26% to Rs 2,729.00 crore (accounting for 98.20% of total sales).  Sales of Others segment has gone up 6.38% to Rs 50.00 crore (accounting for 1.80% of total sales).  Inter-segment sales rose Rs 48.00 crore to Rs 54.00 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 66.30% to Rs 122.00 crore.  PBIT of Cement segment fell 66.67% to Rs 118.00 crore (accounting for 96.72% of total PBIT).  PBIT of Others segment fell 50.00% to Rs 4.00 crore (accounting for 3.28% of total PBIT).  

PBIT margin of Cement segment fell from 12.94% to 4.32%.  PBIT margin of Others segment fell from 17.02% to 8.00%.  Overall PBIT margin fell from 13.01% to 4.39%.  

Operating profit margin has declined from 25.03% to 15.05%, leading to 40% decline in operating profit to Rs 411.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 13.94% to 13.44%.   Purchase of finished goods cost rose from 0.07% to 0.08%.   Employee cost increased from 6.06% to 6.95%.   Other expenses rose from 54.60% to 64.01%.   Power and Oil fuel cost rose from 18.26% to 25.23%.   Freight charges rose from 21.55% to 22.43%.   

Other income fell 34.78% to Rs 30 crore.  PBIDT fell 39.67% to Rs 441 crore.  Provision for interest fell 51.06% to Rs 46 crore.  

PBDT fell 37.99% to Rs 395 crore.  Provision for depreciation fell 7.36% to Rs 302 crore.  

Profit before tax down 70.10% to Rs 93.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 20 crore, compared to Rs 132 crore.  Effective tax rate was 21.51% compared to 42.44%.

Minority interest increased 700% to Rs 8.00 crore.  Net profit attributable to owners of the company decreased 63.48% to Rs 65.00 crore.  

Promoters' stake was 55.97% as of 31 December 2021 ,compared to 56.07% as of 31 December 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Dalmia Bharat has increased 13.58% to Rs 7895 crore.  Sales of Cement segment has gone up 13.55% to Rs 7,887.00 crore (accounting for 98.21% of total sales).  Sales of Others segment has gone up 16.13% to Rs 144.00 crore (accounting for 1.79% of total sales).  Inter-segment sales rose Rs 128.00 crore to Rs 145.00 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 20.99% to Rs 862.00 crore.  PBIT of Cement segment fell 21.21% to Rs 847.00 crore (accounting for 98.26% of total PBIT).  PBIT of Others segment fell 6.25% to Rs 15.00 crore (accounting for 1.74% of total PBIT).  

PBIT margin of Cement segment fell from 15.48% to 10.74%.  PBIT margin of Others segment fell from 12.90% to 10.42%.  Overall PBIT margin fell from 15.43% to 10.73%.  

Operating profit margin has declined from 28.77% to 22.15%, leading to 12.55% decline in operating profit to Rs 1,749.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 13.94% to 13.74%.   Purchase of finished goods cost fell from 0.10% to 0.05%.   Employee cost increased from 7.06% to 7.11%.   Other expenses rose from 49.74% to 57.11%.   Power and Oil fuel cost rose from 15.91% to 21.25%.   Freight charges fell from 20.45% to 20.30%.   

Other income fell 28.37% to Rs 101 crore.  PBIDT fell 13.59% to Rs 1850 crore.  Provision for interest fell 35.27% to Rs 156 crore.  

PBDT fell 10.84% to Rs 1694 crore.  Provision for depreciation fell 2.28% to Rs 902 crore.  

Profit before tax down 18.94% to Rs 792.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 211 crore, compared to Rs 376 crore.  Effective tax rate was 26.84% compared to 38.49%.

Net profit attributable to owners of the company decreased 8.47% to Rs 551.00 crore.  

Promoters' stake was 55.97% as of 31 December 2021 ,compared to 56.07% as of 31 December 2020 .  

Management Commentary:

Commenting on the results, Mr. Puneet Dalmia, Managing Director – Dalmia Bharat Limited, said, "The industry witnessed a difficult quarter with unprecedented cost escalations coupled with a weak demand scenario. However, we believe that the peak of costs is behind us and both the demand and prices are showing some strength." He further added," With recent economic data suggesting recovery in macro indicators, I am excited about the tremendous opportunity ahead. We are pushing our growth ambitions conscientiously and are making investments to deliver sustainable and profitable growth while ensuring consistency and predictability of our earnings."

Director and CEO – Dalmia Cement (Bharat) Limited said, "Inspite of a tough quarter, we have delivered sales volume in line with the industry. The margins, during the quarter, were impacted due to a significant inflation in the energy prices and market weakness in core regions of our operation. However, begining mid-Dec things have started to look good. To mitigate impact of external exigencies, we are working to further strengthen our operational efficiencies and explore avenues of cost rationalizations."