Dalmia Bharat posts Rs 205 crore Q2 loss on exceptional hit

Dalmia Bharat posted a consolidated loss of Rs 205 crore for the September quarter, weighed down by an exceptional loss of Rs 339 crore related to impairment of certain assets and a separation scheme for eligible employees.

The country’s fourth-largest cement producer had also reported an exceptional loss in the June quarter. The Rs 182 crore hit was primarily related to costs associated with its acquisition of cement assets from Jaiprakash Associates.

Sales volume rose 3% year-on-year to 7.1 million tonnes, while consolidated revenue from operations increased 4% to Rs 3,563 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA), however, fell 29% to Rs 493 crore due to higher costs, particularly for power and fuel.

“Demand challenges in few of our key markets along with macro-economic cost headwinds impacted EBITDA for the quarter,” chief financial officer Yatin Malhotra said.

Power and fuel costs rose 22% year-on-year to Rs 874 crore, while total expenses increased around 13% to Rs 3,563 crore.

“While the operating environment continues to remain challenging, we are hopeful that positive momentum on cement prices and our consistent focus on cost optimisation will help mitigate cost pressure,” Malhotra said.

EBITDA per tonne of cement fell 31% year-on-year to Rs 698, while net sales realisation rose 1% to Rs 5,042 per tonne.

Dalmia Bharat shares rose 2.1% to close at Rs 1,628.80 on the BSE. The company, which announced its results after market hours, also declared an interim dividend of Rs 4 per share.
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