Dalmia Cement to acquire stake in Solarcraft Power

10 Jun 2024 , 09:46 AM

On June 9, Dalmia Bharat announced that its subsidiary, Dalmia Cement, will acquire 26% equity share capital and 26% of compulsory convertible debentures in Solarcraft Power India 23 Pvt Ltd.

On June 8, 2024, Dalmia Cement entered into a share subscription agreement, shareholders agreement, and power purchase agreement to acquire the aforementioned stakes in Solarcraft Power, securing power as a captive consumer for up to 46.88 MW in Karnataka.

The acquisition involves purchasing 1.03 equity shares worth over ₹10.31 Crore and 84.37 lakh compulsory debentures worth ₹8.43 Crore, in multiple tranches. The transaction is subject to customary conditions precedents and is expected to be completed within 60 days.

For the quarter ending March 2024, Dalmia Bharat reported a 47.5% year-on-year decline in consolidated net profit to ₹320 Crore, down from ₹609 Crore in the same period the previous year.

Revenue from operations increased by 10% year-on-year to ₹4,307 Crore, up from ₹3,915 Crore in the corresponding period of the previous fiscal year. Dalmia Bharat experienced an 11.8% year-on-year growth in volumes, but EBITDA dropped to ₹654 Crore in Q1 2024 from ₹710 Crore the previous quarter.

Managing Director and CEO Puneet Dalmia highlighted a volume growth of 11.8% to 28.8Mnt and EBITDA growth of 13.4% to ₹2,639 Crore for FY24, emphasizing efforts to gain market share and improve realizations.

CFO Dharmender Tuteja noted a YoY volume growth of 18.5% for the quarter but pointed out that a drop in cement prices led to EBITDA erosion and a margin decline from 18.1% in Q4’23 to 15.2% in the current quarter.

At the time of writing, on June 10,2024, shares of Dalmia Cement ₹1810 which is a 0.039% gain than the previous close. The stock has dipped 13% in the last one year, and 23% since the beginning of the year.

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