Dalmia Bharat (DALBHARAT) Q2 24/25 earnings summary

Executive summary

• Achieved 8.4% year-over-year volume growth in Q2 FY25 to 6.7 MnT, despite weak industry demand and discontinuation of tolling with JP since July 2024.

• Revenue declined 2% year-over-year to INR 3,087 crores in Q2 FY25 due to sharp price drops, especially in South and East markets.

• Maintained cost leadership, with significant progress in renewable energy adoption and cost-saving initiatives; renewable energy consumption increased to 39%.

• Interim dividend of INR 4 per share declared; received INR 320 crores from DBRL share divestment.

• Unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2024, were approved by the Board and reviewed by auditors, with no material misstatements identified.

Financial highlights

• Q2 FY25 revenue: INR 3,087 crores, down 2% year-over-year; H1 FY25: INR 6,708 crores.

• EBITDA for Q2 FY25: INR 434 crores, down 27% year-over-year; EBITDA per ton at INR 650.

• H1 FY25 EBITDA per ton averaged INR 782; Q1 was INR 900, Q2 was INR 650.

• Net debt as of September 30: INR 644 crores; net debt to EBITDA at 0.25x.

• Consolidated profit for Q2 FY25: INR 49 crores; H1 FY25: INR 194 crores.

Outlook and guidance

• Industry demand expected to rebound in H2 FY25, with full-year growth estimated at 6%.

• Company aims to grow volumes at 1.5x industry rate, targeting 9% volume growth for FY25.

• Prices expected to improve in H2, but competitive intensity may limit gains.

• EBITDA per ton guidance for FY25: INR 900–1,000, with long-term target of INR 1,100–1,200.

• Operational renewable energy capacity (including group captive) expected to reach 341 MW by end of FY25.