DALBHARAT - DALMIA BHARAT LIMITED Share Price

Management of Dalmia Bharat Limited expressed a strong outlook for FY27 and beyond, emphasizing that India's cement demand is expected to grow at a CAGR of 7% to 8% in the medium term. CEO Puneet Dalmia highlighted the resilience of the Indian economy, which is progressing rapidly towards becoming a $5 trillion economy by 2028, driving substantial investments in infrastructure.

Key forward-looking points shared included:

1. Expansion Plans: The company aims to increase its cement capacity to 75 million tons by FY28, progressing well on existing projects in South and West India. The expected capex for FY27 is estimated between INR 3,200 crores to INR 3,400 crores, with approximately INR 2,200 crores directed towards ongoing expansions.

2. Operational Performance: Dalmia Bharat reported an exceptional FY26 with an EBITDA of INR 3,083 crores, up 28% YoY, and a PAT of INR 1,157 crores, reflecting a 65% increase. Volumes grew 2% and revenues 6%. Power and fuel costs have seen a decline of 6% QoQ, indicating effective cost management despite inflationary pressures.

3. Cost Management: The company achieved its lowest quarterly total cost per ton in five years, with ongoing efforts aimed at further reducing costs by INR 50 to INR 100 annually.

4. Product Innovation: A new premium product line, dubbed Weather 365, is set to enhance their offerings in response to consumer demand for quality.

5. Market Trends: April pricing improvements have been noted, with hopes to maintain margin integrity despite rising costs due to geopolitical impacts, particularly in power and fuel.

These insights reflect Dalmia Bharat's commitment to robust growth and operational excellence amidst a challenging market environment.

1. Amit Murarka: "What is the outlook that we can expect on volume and market share in the coming couple of years?"

Puneet Dalmia: "We aim for profitable volume growth. We faced some operational issues but have new lines being commissioned to increase capacity utilization. We're focused on improving the quality of sales while enhancing profitability. Overall, we're optimistic about our progress."

2. Amit Murarka: "What's the current target for capacity now?"

Puneet Dalmia: "We aim to reach 75 million tons by FY28. There's no change in our long-term targets, which remain the same as previously outlined."

3. Amit Murarka: "How are you placed to combat cost inflation due to the West Asia crisis?"

Yatin Malhotra: "We anticipate an impact of INR 125 to INR 150 per ton in costs. We're actively working on mitigating these impacts through fuel mix optimization and logistics initiatives."

4. Rajesh Ravi: "Did you achieve a cost reduction of INR 100 per ton in FY26?"

Yatin Malhotra: "Yes, on an annualized basis, we achieved a reduction of INR 100. For FY27, our target is to continuously chase a further reduction of INR 50 to INR 100 annually."

5. Satyadeep Jain: "What options are you looking at to reach the 75 million tons capacity?"

Puneet Dalmia: "Currently, we cannot disclose specific plans, but we are on track for this target by FY28 with ongoing project assessments and investments."

6. Indrajit Agarwal: "What is the demand trend in April?"

Puneet Dalmia: "Demand seems stable in April. Historically, it takes a little time to feel a slowdown. I anticipate that any effects will likely be apparent in upcoming quarters."

7. Hiten Boricha: "What is the total price hike you've passed on so far in April?"

Dharmender Tuteja: "We are still assessing the situation, but we've managed to pass on the cost increases through our pricing adjustments, aiming to maintain margin levels."