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Dalmia Bharat Ltd Q1FY22 Quarterly Results Key Highlights - Dalmia Bharat Results | Invest Yadnya

Dalmia Bharat Ltd Q1FY22 Quarterly Results Key Highlights - Dalmia Bharat Results | Invest Yadnya

Published on 28 July 2021 Views 62 Comments 0

      Financial Performance Highlights:

    • Revenue of Dalmia cement share market from operations this Quarter increased to  Rs 2,589.00 Cr against last year’s corresponding quarter Rs  1,901.00 Cr which is a 36.19% increase YoY  Cr while decreased by 21.09% QoQ against last quarter which was at Rs 3281 Cr.

    • Total expenditure of Dalmia Bharat stock analysis increased by 36% YoY while decent cost-efficiency of Dalmia Bharat Annual Report observed against last quarter decreased in total expenditure by 22%.

    • The EBITDA of Dalmia cement share value increased by 14 % YoY and decreased by 10% QoQ while the EBITDA margin decreased by 5% YoY and increased by   3% QoQ which was observed from Dalmia Bharat  research report.

    • Profit of Dalmia cement Share price after Tax increase by 45% YoY and  decreased 57% QoQ 

    Major Points

    Sales volume of Dalmia Bharat value research increased by 33% to 4.89 MnT.

    The net reduction in Gross  debt of Rs 476 in this quarter Net Debt/EBITDA at 0.08x

    The Dalmia Bharat review which expects to emerge as the most profitable and environmentally friendly in the cement sector of India

    The Dalmia Bharat results have maintained a strong balance sheet with good corporate governance Ongoing 

    Investment in industry 4 and IIoT for process optimization enhancing productivity, superior scheduling, and load balancing and performance management

    Capex plan of the company is mentioned below:

    Cement Capacity Expansion Plan

    Capacity Overview

    MnT

    Present Capacity

    30.8

    Ongoing Projects

    7.8

    Greenfield

    3

    Brownfield

    1.7

    Upgradation

    5.2

    Total Capacity

    48.5

    Clinker Capacity Expansion Plan

     

    FY21

    FY24E

    SOUTH

    7.8

    9.4

    EAST

    6.6

    8.3

    NORTH-EAST

    2.3

    3.3

    WEST

    1.98

    2.4

    TOTAL

    18.68

    23.4

       CAPEX Breakdown :

    Ongoing expansion : 1950-2000 Cr

    New Capacity:4700-5000 Cr

    Sustainability :1000-1200 Cr

    Others :900-1000 Cr

       Con call Summary :

    • The company expecting to have good demand from  Housing and infrastructure

    • Management being optimistic about their capacity expansion as will increase it by 48.5 Mt by FY 24 and  by 60Mt by FY 25 end which they will announce in coming months  as their target is to reach 110-130 Mt by next 10 years(2031)

    • From this year allocating 10%  OCF towards dividend and share buyback as a gesture for shareholders

    • Company targets to reach 100% blended cement company by next 5 years which is carbon friendly.

    • Proposing green fund  innovation mostly for which 10% OCF will be allocated to innovative technology like  low carbon cement, a pilot for  carbon captive technology, mineralization,Oxy-fuel technology green hydrogen, etc

    • Allocating 1000-1200 Cr over the 2-3 years to invest Solar power and other equipment and another system which will be a substitute for fuel and clinker.

    • The company is to target 10-12% ROCE in the next 3-5 years

    • Companies are to consolidate further to mix their debt and equity to increase their performance by 15% CAGR. Debt will help to reduce the cost of capital.

    • The company is planning to remain pure play in the cement sector and planning to divest retail and refectories and will also evaluate its position in IEX going forward which will be announced in the coming few months.

    • Company to focus on South and east segment for more revenue contribution from  these regions

    • Company planning to spend 6000-7000 Cr in next 3 years ( will maintain less than 2x EBITDA of debt )

    • Company planning to have solar power capacity which is  expected to work by 2023

    • The company will vision pure-play cement company

    • The company decides to invest  85%  in AAA rating instruments and the other  15% in AA rating instruments 

    • The company focuses on giving more transparency by having a more independent board of directors after the approval of shareholders which signifies a strong governance policy of the company.

    • The company has a mission of ZERO carbonization and is the most eco-friendly cement company in India. 

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