Dalmia Bharat Ltd's Q1FY19 consolidated net profit declines 13.8% yoy to Rs148.1cr : Misses Estimates

The company’s consolidated revenue stood at Rs2,367.6cr, up 15.8% yoy but down 9.7% qoq.

Aug 12, 2018 03:08 IST India Infoline Research Team

Dalmia Bharat Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 2,367.6 15.8
EBITDA 507 [5.8]
EBITDA Margin (%) 21.4 [491]
Net Profit (adjusted) 148.1 [13.8]
***EBITDA margin change is bps
Dalmia Bharat (DBL) reported Q1FY19 numbers, significantly below the consensus estimates on operating fronts. It reported revenue growth (net of excise duty in the base quarter) of 15.8% yoy to Rs2,367.6cr, broadly in-line with estimates. Revenue growth was primarily driven by 13% yoy cement volume growth. However, higher cost led to 5.8% yoy decline in EBITDA to Rs507cr, 19% lower than estimates. EBITDA margin, thus, contacted by 491bps yoy to 21.4%. Led by EBITDA decline, lower other income and higher tax outgo, PAT declined by 13.8% yoy to Rs148.1cr, missing estimate of Rs170cr.
  • Volume during the quarter grew by 13% yoy to 4.5MT; utilization level of 72% against 64% in same quarter last year.
  • Due to higher cost of raw material, power and fuel, EBITDA/tn declined by 19.2% yoy to Rs1,135/tn.
  • Company’s gross debt as on June 30, 2018 stood at Rs7,071cr; it repaid Rs203cr during the quarter.
  • For the year, petcoke prices grew by 29% yoy and slag costs were up 57% yoy.
  • Company has informed that the scheme of arrangement and amalgamation involving company’s step down subsidiaries, OCL India (OCL), Dalmia Cement East Ltd (DCEL), Shri Rangam Securities & Holdings Ltd (SRSHL), Dalmia Bharat Cements Holdings Ltd (DBCHL) and Odisha Cement Limited has been approved by NCLT and shall become effective on completion of activities mentioned in the approved scheme. On the Scheme becoming effective, OCL, DCEL, SRSHL and DBCHL shall stand liquidated without winding up and accounting for arrangement and amalgamation will be given effect to.
  • Company remain upbeat on the cement demand scenario led by infrastructure development and government projects (roads, irrigation, metro railways, affordable housing, etc).




Technical View:

Dalmia Bharat Ltd ended at Rs. 2,637.10, down by 13.65 points or 0.51% from its previous closing of Rs. 2,650.75 on the BSE.
The scrip opened at Rs. 2,659 and touched a high and low of Rs. 2,675 and Rs. 2,600 respectively. A total of 38,072 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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