Dalmia Bharat (DALBHARAT) Q3 24/25 earnings summary

Executive summary

• Sales volume for Q3 FY25 was 6.7 million tons, with YoY growth of 2% from core plants but a 2% overall decline; 9M FY25 sales volume grew 4.1% YoY to 20.8 million tons.

• Revenue declined 12% YoY to INR 3,181 crores (Rs 3,087 Cr in some reports) due to lower cement prices, but improved 3% sequentially from Q2.

• EBITDA for Q3 FY25 was INR 511 crores, down 34.5% YoY, with margin at 16.1%.

• Net Debt/EBITDA stood at 0.55x as of December 31, 2024, reflecting a strong balance sheet.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2024 were approved by the Board and reviewed by auditors, with no material misstatements identified.

Financial highlights

• Trade mix improved to 66% (from 53% YoY), and premium product mix rose to 24% (from 21%).

• Raw material cost declined 2% YoY to INR 765/ton; power and fuel cost down 9% YoY to INR 1,005/ton.

• Logistic cost increased 2.7% YoY to INR 1,120/ton due to supply shifts and plant shutdowns.

• Finance cost for Q3 FY25 was Rs 101 Cr, with cost of borrowing at 7.8%.

• Total cost per ton remained among the lowest in the industry.

Outlook and guidance

• Cement demand expected to grow 6%-7% YoY in Q4, leading to full-year growth of 3%-4%.

• CapEx for FY25 guided at INR 3,000 crores, mainly for Northeast and Bihar expansions.

• Operational renewable energy (RE) capacity, including group captive, is expected to reach 267 MW by end of FY25.

• Net debt expected to remain stable despite ongoing CapEx, with leverage targeted below 2x Net Debt/EBITDA.

• The company continues to evaluate contingent liabilities related to mineral royalty following a Supreme Court judgment, with an estimated present value of ₹145 crore.