Dalmia Bharat Ltd. · NSE:DALBHARAT
Dalmia Bharat — Q1 FY24 Earnings Presentation
30 slides from Dalmia Bharat's earnings presentation, Jul 21, 2023
Slide 1: Exchange filing cover letter
File No: 1010/02 July 21, 2023 BSE Limited National Stock Exchange of India Limited P J Towers, Dalal Street, “Exchange Plaza”, Plot No. C-1, Block G Fort Mumbai - 400001 Bandra - Kurla Complex, Bandra (East), Scrip Code: 542216 Mumbai - 400 051 Symbol: DALBHARAT Subject: Earnings Release / Investor
Slide 2: Earnings Release Q1'FY24
EARNINGS RELEASE Q1’FY24
Slide 3: Disclaimer
Disclaimer Certain statements in this presentation describing the Company's objectives, projections, estimates and expectations may be 'forward looking statements' within the meaning of applicable laws and regulations. Although our expectations are based on reasonable assumptions, these forward-look
Slide 4: Table of Contents
PA G E SECTION NO. 01. Key Highlights 4 02. Expansion & Capex Update 6 03. Q4 and FY23 Performance 9 TA B L E O F CO N T E N T S 04. ESG at Dalmia 19 05. Awards and Accolades 22 06. Annexures 26 3
Slide 5: Key Highlights
SECTION 01 KEY HIGHLIGHTS 4
Slide 6: Key Highlights
Key Highlights Performance ▪ Sales Volume increased by 12.4% YoY to 7.0 MnT and Revenue by 9.8% YoY to 3,624Cr in Q1FY24 ▪ Net Debt/EBITDA stood at 0.52x ▪ Renewable Energy capacity increased to 170MW (consumption basis 27% during Q1’FY24) Capacity ▪ Commenced commercial production at Bokaro Cement
Slide 7: Expansion and Capex Update
SECTION 02 EXPANSION AND CAPEX UPDATE 6
Slide 8: Cement Capacity Expansion Plan – 46.6 MnT by FY24
Cement Capacity Expansion Plan – 46.6* MnT by FY24 Region Plant Capacity Closing Capacity FY22 35.9 East Bokaro, JH 0.6 North East Adhunik, ML 0.2 East Rajgangpur, OR 0.3 East Kapilas, OR 0.3 North East Calcom, AS 1.3 East Bokaro Line 2, JH 2.5 East Medinipur, WB 0.6 Capacity as in July 2023 41.7 So
Slide 9: Clinker Capacity Expansion Plan
Clinker Capacity Expansion Plan FY22 Q1FY24 FY24E* SOUTH 7.8 9.2 10.4 EAST 6.8 7.7 8.3 NORTH-EAST 2.3 2.7 2.9 WEST 2.0 2.1 2.1 TOTAL 18.9 21.7 23.7 (Figures in MnT) *the closing capacity is excluding the acquisition of clinker assets of Jaiprakash Associates 8
Slide 10: Q1FY24 Performance
SECTION 03 Q1FY24 PERFORMANCE 9
Slide 11: Financial Performance: Quarterly Sales Volume
Financial Performance Quarterly Sales Volume (MnT) Growth: 12.4% Decline: 5.9% 7.4 7.0 6.2 Q1FY23 Q4FY23 Q1FY24 ➢ Delivered double digit volume growth on YoY basis during the quarter 10
Slide 12: Financial Performance: Quarterly Sales Revenue
Financial Performance Quarterly Sales Revenue Growth: 9.8% (Rs Cr) Decline: 7.4% 3,912 3,624 3,302 Q1FY23 Q4FY23 Q1FY24 11
Slide 13: Operational Performance: Raw Material Cost
Operational Performance Quarterly Cost of Raw Material Consumed^ (Rs/T) Increase: 9.2% Increase: 3.8% 768 740 704 Q1FY23 Q4FY23 Q1FY24 ➢ Increase in raw material cost on YoY basis with higher rate of Slag and Fly ash rates 12 ^Basis cement production (not sales volume)
Slide 14: Operational Performance: Power & Fuel Cost
Operational Performance Quarterly Power & Fuel Cost^ (Rs/T) Decrease: 15.4% Increase: 0.9% 1,527 1,281 1,293 Q1FY23 Q4FY23 Q1FY24 ➢ Decrease in power & fuel cost on YoY basis reflects the reduction in fuel consumption cost and improvement in operational KPIs 13 ^Basis cement production (not sales vo
Slide 15: Operational Performance: Logistics Cost
Operational Performance Quarterly Logistics Cost (Rs/T) Increase: 5.5% Increase: 4.6% 1,156 1,096 1,106 Q1FY23 Q4FY23 Q1FY24 ➢ Increase in logistics cost on a YoY movement due to busy season surcharge and inter regional clinker movement 14
Slide 16: Operational Performance: Total Cost per Tonne
Operational Performance Total Cost /T 4,364 4,311 4,308 745 768 736 Others 318 257 317 Employee Costs 1096 1106 1156 Freight Charges Power & Fuel Raw Material Consumed 1529 1172 1289 (Inc)/Dec in stock 778 709 906 231 -34 -97 Q1FY23 Q4FY23 Q1FY24 ➢ Dalmia Bharat continues to be one of the Lowest Tot
Slide 17: Financial Performance: Quarterly EBITDA
Financial Performance Quarterly EBITDA (Rs Cr) Margins 17.7% 18.1% 16.8% Increase: 4.1% Decrease: 13.7% 707 610 586 Q1FY23 Q4FY23 Q1FY24 ➢ EBITDA improved on YoY basis with increase in volumes, partially offset by softness in cement prices 16
Slide 18: Financial Performance: Debt Position
Financial Performance Debt Position Net Debt / EBITDA 0.29x 0.52x (Rs Cr) 4387 3763 3102 3179 1208 661 Mar'23 Jun'23 Gross Debt Cash & Cash Equivalents Net Debt 17 * Includes MTM value of IEX Investment (Q4FY23: Rs 1,703 cr ; Q1FY24: Rs 1,692 Cr)
Slide 19: Finance Cost
Finance Cost Q1FY24 83 (Rs Cr) Cost of Borrowing 8.3% Total Finance Cost 47 Q1FY23 (Rs Cr) Cost of Borrowing 6.5% Total Finance Cost 18
Slide 20: ESG Update
SECTION 04 ESG UPDATE 19
Slide 21: WHRS and Solar Power Update
WHRS and Solar Power Update Renewable Energy Power 10x WHRS Solar 180 166 170 Total Renewable Power - MW 160 140 120 100 100 100 80 63 60 32 32 40 66 70 17 17 10 20 8 8 22 31 9 9 - - FY19 FY20 FY21 FY22 FY23 Q1FY24 ➢ In line with the commitment towards RE100 by 2030 & Carbon Negative by 2040, Dalmia
Slide 22: CSR at Dalmia Bharat
CSR at Dalmia Bharat Major Initiatives During quarter, DIKSHA had a total of 1,609 trainees ▪ Dalmia Institute of Knowledge & Skill Harnessing enrolled for training. The popular trades included Home Health Aid, Assistant Electrician, Apparel, Beauty & (DIKSHa), a skill training programme, actively W
Slide 23: Awards and Accolades
SECTION 05 AWARDS AND ACCOLADES 22
Slide 24: Prominent Awards
Prominent Awards CII ITC Sustainability Awards 2022 Business Today Best CEOs Award 2023 We won the accolade for Excellence in CSR at a corporate level MD and CEO won the Best CEO award from Business Today under the Cement category 23
Slide 25: CemWHR 2023 Conclave
CemWHR 2023-Conclave Dalmiapuram Unit ❑ Cement Project of the Year Kalyanpur Unit ❑ Innovation for Sustainability Meghalaya Unit ❑ Cement Plant of the Year ❑ Innovation for sustainability 24
Slide 26: Other Awards and Accolades
Other Awards and Accolades 14th CIDC Vishwakarma ISCM _5th India Logistics & Green Champion Award The Sustainable World Awards Warehousing Excellence 2022 Conclave 2023 Awards 2023 Trophy and Certificates for Enterprise Digital Transformation For environmental improvement Top 3 Most Sustainable Safe
Slide 27: Annexures
SECTION 06 ANNEXURES 26
Slide 28: Operational performance (basis cement production)
Operational performance (basis cement production) (Rs/T) Particulars Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Cost of Raw Material Consumed 704 767 781 740 768 Power & Fuel Cost 1,527 1,536 1,427 1,281 1,293 27
Slide 29: Impact on PBT due to Goodwill Amortisation
Impact on PBT due to Goodwill Amortisation (Restructuring Related) (Rs Cr) Q1’FY24 Q1’FY23 With Restructuring Without Restructuring With Restructuring Without Restructuring Income from Operations 3,624 3,624 3,302 3,302 Less:-Operating Expenses 3,014 3,014 2,716 2,716 EBITDA 610 610 586 586 Add:- Ot
Slide 30: Thank You
CONTACT INFORMATION Thank You Corporate Office: 11th & 12th floor, Hansalaya Building, 15, Barakhamba Road, New Delhi – 110001 e: investorrelations@dalmiabharat.com w: www.dalmiacement.com