InvestorQ : What is the secret of Dalmia Bharat performance in the quarter and what did Cement do so great in the Sep-20 quarter?
Riya Dwivedi made post

What is the secret of Dalmia Bharat performance in the quarter and what did Cement do so great in the Sep-20 quarter?

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shrinidhi Rajan answered.
2 weeks ago
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Here is what you need to know about the Dalmia Bharat results, a cement company and part of the Dalmia group of Kolkata.

· The company reported second quarter PAT growth of more than six-fold or a growth of around 500% at Rs.232 crore for the quarter.

· For the Sep-20 quarter, Dalmia Bharat reported 7.8% increase in sales revenues at Rs.2410 crore. From the COVID impact of Jun-20, the bounce was quite sharp and also quite rapid.

· Let us turn to operations now. For the Sep-20 quarter, operating profits were up a massive 7-fold at Rs.404 crore.

· The sharp spike in the operating profit performance was on the back of higher sales, better absorption of fixed costs, lower power costs and reduced other expenses.

· As a result, the operating profit margin or OPM of Dalmia Bharat expanding from 2.46% to 16.76% in the Sep-20 quarter. That is a massive expansion in OPMs.

· Profit after tax or PAT for the Sep-20 quarter was up more 500% to Rs.232 crore. This was possible due to higher sales and lower costs, despite higher tax impost.

· Consequently, the PAT margins or the net profit margins expanded from 1.61% to 9.63% reflecting a massive jump in the second quarter.

· Let us sales volumes in terms of tons sold. The volume of sales for the quarter increased 7% yoy at 4.8 million tons or MT as it is better known. There was positive price support which enhanced sales.

· The quarterly EBITDA of Rs.702 crore was a sort of all-time record in the history of the company in terms of core profitability of the company.

· In terms of financial risk reduction, Dalmia Bharat also repaid net debt to the tune of Rs.246 crore during the quarter and reduced net debt / EBITDA ratio to 0.87X.

· In the Sep-20 quarter, the only hitch for Dalmia Bharat was the seasonal weakness in cement prices in the Eastern sector, but the impact was quite limited.

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