Dalmia Bharat dips over 4.25% after cement maker reports weak January-March results

Dalmia Bharat Share Price: Dalmia Bharat slid over four per cent on BSE on Thursday (April 25, 2024) after the cement maker reported weak fourth-quarter results a day ago and missed Zee Business research estimates on key fronts.

The stock that opened at Rs 1,925.00 slipped to the day's low of Rs 1,875.80, a 4.26 per cent slide from its previous close of Rs 1,959.20.

The Dalmia Bharat stock was trading lower by 4.02 per cent, or Rs 78.80, at Rs 1,880.40 at 10:16 am on Thursday.

Dalmia Bharat Q4FY24 (conso) (YoY) results

The company's profit after tax (PAT) was down by 46.50 per cent to Rs 315 crore against Rs 589 crore Year-on-Year (YoY). But it was above analyst estimates of Rs 296 crore.

Dalmia Bharat's revenue from operations was up by 10 per cent to Rs 4,307 crore against Rs 3,915 crore, above the analyst estimates of Rs 4,170 crore.

Its EBITDA, however, slipped by 7.90 per cent to Rs 654 crore compared to Rs 710 crore YoY, below research estimates of Rs 810 crore.

Dalmia Bharat's margin also slipped to 15.2 per cent against 18.1 per cent YoY, well below research estimates of 19.2 per cent.

Other income

The cement maker's other Income jumped to Rs 120 crore versus Rs 38 crore YoY.

There was an exceptional item loss of Rs 144 crore in the previous year.

There was a tax expense of Rs 32 crore compared to Rs 125 crore YoY.  

Dividend

Dalmia Bharat also announced a dividend of Rs 5 per share along with its January-March results.

Comments

Sales volume is estimated to grow at 11.8 per cent YoY.

The cement capacity has been increased by 15.6 per cent YoY.

There is pressure on margins due to weak pricing and rising costs.

There was 46.5 per cent YoY decline in profits.

The profit is better than expectations due to other income.

Morgan Stanley on Dalmia Bharat 

The brokerage has maintained an 'overweight' rating on Dalmia Bharat with a share price target of Rs 2,450.

Macquarie on Dalmia Bharat 

Macquarie has maintained an 'outperform' rating on the company with a target of Rs 2,233.