Motilal Oswal: Capacity Expansion To Drive Dalmia Bharat’s Market Share Gains

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Dalmia Bharat Ltd.’s results surprised, driven by strong realisation and cost reduction. Ebitda/tonne came in at Rs 1,678 (up15% YoY) – the highest ever for the company.Volumes declined 20% YoY to 3.66 million tonne (our estimate 3.64 million tonne) due to plant shutdowns in April; however, this was much better than the industry (down approximately 38% YoY), led by strong independent house building demand in the eastern region.Realisation rose 12% QoQ to Rs 5,393 per tonne (down 3% YoY), driven by price hikes in the southern and eastern regions, 2% higher than our estimate of Rs 5,303 per tonne. As a result, revenue fell by 22% YoY to Rs 19.7 billion (our estimate 19.3 billion).Variable cost was down, led by reduced power consumption, reduced power rate, and increased blended cement sales. Reduced marketing activity, traveling expenses, office administration expenses, and other overheads have led to a further reduction in cost, but as volume picks up, these costs are expected to normalise..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Capacity Expansion To Drive Dalmia Bharat’s Market Share Gains

Motilal Oswal: Capacity Expansion To Drive Dalmia Bharat’s Market Share Gains

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