New Delhi, 4rd February, 2016: Dalmia Bharat Limited today announced its un-audited consolidated financial results
for the Quarter ended December 31, 2015
Improved performance for the quarter is led by higher volumes, better branding and further cost optimization. Focused efforts led to improved volumes & market share in our regions as compared to Industry growth of 3%.
Our cost reduction drive has resulted further reduction in cost of production by 11% to 3,411 on per tonne basis for the quarter.
Variable cost on per tonne basis at ₹ 1,333 for the quarter has witnessed reduction of 15% as compared to corresponding quarter of previous year and down by 7% on QoQ basis.
Raw Material cost on per tonne basis has reduced by 11% YoY for the quarter on account of sustainability initiatives through increased production of blended cement from 73% to 83% and increased usage of additives.
Power & Fuel cost on per tonne basisat ₹ 666 was lower by 26% on YoY basis and 8% on QoQ basis, led by continuous drive to use most economic fuel and improvise heat efficiency. Petcoke consumption has further increased to 72% in Q3 FY16 vs. 32% in Q3 FY15.
Freight on per tonne basis at₹ 878 has been brought down by 5% on YoY basis, led by implementation of cost reduction initiatives, change in market mix and lower diesel prices.
Fixed Costs on per tonne basis for the quarter has witnessed reduction of 7% on YoY basis and 11% on QoQ basis on account of tighter controls and improved volumes.
Simplification of Structure:
Dalmia Bharat Ltd. (“DBL” or “The Company”) has signed a definitive agreement to acquire KKR’s stake in Dalmia Cement Bharat Ltd. (“DCBL”) and concurrently bring in KKR as DBL’s largest institutional shareholder with 8.5% holding. The transaction once completed will simplify DCBL’s shareholder structure with DCBL becoming a 100% subsidiary of DBL.
Outlook
We expect demand for cement to pick up gradually over the next couple of quarters, with the government’s increasing focus on infrastructure development as well as on the promising new projects of Smart Cities and Housing for All. These factors are expected to stimulate investments across several sectors and expected to have favorable impact on improving the overall economic development. The company is focused on controlling costs and emphasis on market oriented initiatives to improve
profitability.
About Dalmia Bharat Group
Dalmia Bharat Limited (DBL) (BSE Code: 533309|NSE Symbol: DALMIABHA and listed in MSE), part of the Dalmia Bharat Group, is a pioneer in cement manufacturing and applications since 1939. With an expanding India footprint, the company is a category leader in super-specialty cements used for oil well, railway sleepers and air strips and is the country’s largest producer of slag cement. With a growing capacity, currently pegged at 24 MTPA, Dalmia Cement is a top quartile player in India. Visit us at http://www.dalmiabl.com