Detailed Narrative
Q4 FY25 Performance and Full Year Overview
Dalmia Bharat reported a Q4 FY25 revenue of ₹4,091 crores, marking a significant 28.6% QoQ improvement, though it declined 5% YoY. Sales volumes for the quarter were 8.6 million tons, a 3% YoY de-growth. However, volumes from Dalmia plants alone grew 4% YoY in Q4 FY25 and 6% YoY for the full year, outperforming the industry's 4-5% growth. Full year FY25 revenue stood at ₹13,980 crores, a 4.8% YoY decline, with PAT at ₹699 crores compared to ₹853 crores in FY24.
Profitability and Cost Management
EBITDA for Q4 FY25 improved 21% YoY to ₹793 crores, with EBITDA per ton at ₹926. The EBITDA margin expanded by 420 basis points to 19.4% in Q4 FY25. This was driven by effective cost management, including a 4% YoY decline in raw material cost per ton to ₹743 and a 7% YoY reduction in power and fuel cost per ton to ₹945. The blended fuel cost was ₹1.30 per kcal, and the CC ratio improved to 1.69 times from 1.67 times in Q4 FY24. Logistics cost also declined 2% YoY to ₹1,135 per ton.
Capacity Expansion and Growth Strategy
The company commissioned 2.4 MTPA grinding unit in Lanka, Assam, and 0.5 MTPA grinding unit in Bihar during Q4 FY25, bringing total capacity to 49.5 MTPA. Further expansion plans include 3 MTPA each at Belgaum (Karnataka) and a new greenfield grinding unit in Pune (Maharashtra), expected to be commissioned by end of FY27. The clinker unit at Umrangso is expected to be commissioned in Q2 FY26. The total clinker capacity is projected to reach 27.1 MTPA by next year (FY26) from 23.5 MTPA at FY25 end.
Capital Allocation and Debt Profile
Dalmia Bharat incurred CAPEX of approximately ₹2,664 crores in FY25, with ₹98 crores invested in equity SPVs for group captive RE projects. For FY26, the company expects CAPEX of about ₹3,500 crores, primarily for expansion projects in Belgaum, Pune, and the Umrangso clinker line. The gross debt at FY25 end was ₹5,279 crores, an increase of ₹629 crores from March 2024. Net debt stood at ₹716 crores, resulting in a healthy net debt to EBITDA ratio of 0.3x. The board proposed a final dividend of ₹5 per share, bringing the total dividend for FY25 to ₹9 per share, including the interim dividend of ₹4.
Industry Outlook and Pricing Dynamics
Management anticipates India's GDP to grow around 6.5% in FY26, with cement demand projected to grow 7-8%. While Q4 FY25 saw some price improvement, particularly in the East, it was largely offset by price drops in the South due to competitive pressures. The company remains optimistic about price stickiness and consolidation aiding better pricing in the long term. A cost reduction target of ₹150-200 per ton over the next two years is in place, with about half expected to be realized in FY26.
Renewable Energy and Legal Matters
The company added 2.2 MW of solar power capacity at Lanka, Assam, and 13 MW of RE capacity under group captive arrangements, bringing total operational RE capacity to 267 MW. The target is to reach 595 MW by end of FY26. Regarding legal matters, an ED Provisional Attachment Order of ₹793 crores was issued, stemming from a 2011 CBI case. Management clarified that this does not impact company operations and they will take legal steps to defend their position, asserting no criminal offense was committed.