The 11 reports from 5 analysts offering long term price targets
for Dalmia Bharat Ltd.(Old) have an average target of 2877.00. The consensus estimate
represents an upside of 13.94%
from the last price of 2525.00.
Weak Operating Performance As Expected; Stock Under Review Dalmia Bharat Enterprises (DBEL), renamed and listed as Odisha Cement, reported a 3QFY19 weak operating performance, in line with expectations. Volume growth was ~8% YoY at 4.47mnmt (below our estimate of 4.65mnmt). Grey cement realisation (unadjusted to incentive income) declined ~2.4% YoY to Rs4,866/tn and cost inflation was ~3.3% YoY at Rs4,016/tn which pulled EBITDA down by 16.5% YoY to Rs3.8bn. Overall revenues grew ~just over 5% YoY to ~Rs21.8bn. Operating costs were high because of overall inflated cost structure contributed by energy & logistic costs, higher raw material costs and other...
Revenue grew by 17.5%YoY aided by healthy volume growth of 13.5% YoY. EBITDA de-grew by 11.7%YoY due to surge in raw material and power & fuel expenses, EBITDA margin declined by 600bps YoY to 18%. We reduce EBITDA margin by 200bps/60bps for FY19E/20E. Pet coke prices has declined to US$96 in October from US$103 in Q2FY19. The recent acquisition, Kalyanpur cement (1.1MT) started clinker production in Q2FY19 and grinding is likely to start from Q3FY19. DBL has completed the scheme of arrangement & amalgamation with OCL...
Performance In Line; Stock Under Review Post Odisha Cement Amalgamation Dalmia Bharat Enterprises (DBEL) reported 2QFY19 performance in line with expectation backed by YoY double-digit volume growth. Volume grew ~13.5% YoY to 4.13mnmt (in line with our estimate of 4.08mnmt), contributed by its key markets. Realisation gains (unadjusted to incentive income), grew ~6% YoY to Rs5,225/tn which was offset by higher- than-estimated cost over-run of ~12% at Rs4,283/tn. Overall revenues grew ~17% YoY to ~Rs21.6bn. Higher operating costs was because of higher energy costs (combined with raw material costs to neutralise the inventory...
14 September 2018 Dalmia Bharat The Indian cement industry witnessed supply growing at a CAGR of 11% over FY07-17. However, the pace of capacity addition has declined over the years. Also, around this time, green-field capital costs were constantly increasing due to higher underlying prices of land. Green-field capital costs increased from USD100/t in 2012 to USD120/t in 2017 due to higher land prices and also due to a rise in overall lead time for the construction of projects. Cement prices over the last 17 years increased at a 5% CAGR and have shown negative growth only for three years, during FY07-17. Prices witnessed maximum growth in FY06-07 on account of consolidation in the industry when Ultratech acquired L&T; Cement and Holcim acquired ACC/Ambuja. Increase in prices of land Availability of credit turning more stringent The last few limestone bidsby Emami Cement, Dalmia Cement and Ambuja Cementpoint to a sharp increase in the cost of acquisition of limestone.
Revenue grew by 15%YoY aided by healthy volume growth of 13% YoY. EBITDA de-grew by 5.9%YoY due to surge in raw material, power & fuel and freight expenses. EBITDA margin declined by 490bps YoY to 22.1%. We reduce EBITDA margin by 270bps/330bps for FY19/20E to factor in fuel/RM cost increase while marginally change revenue estimates. DBL repaid Rs203cr in Q1FY19. Net Debt/EBITDA is at 1.7x Vs 2.3x YoY. Cost reduction measures like setting up of Waste Heat Recovery (WHR) and increased mix of alternate fuel (low cost) will support margins....
Dalmia Bharat Enterprises (DBEL) reported a steady performance in 1QFY19 backed by YoY double-digit volume growth. Volume grew ~13% YoY to 4.51mnmt (below our estimate 4.67mnmt), contributed by its key markets. Realisation, however, fell ~4.8% YoY/flat QoQ to Rs4,881/tn on account of weak pricing in the southern/eastern region. Overall revenues grew ~16% YoY to ~Rs23.7bn. Additionally, operating costs increased ~10% YoY to Rs4,088/tn (5% above our estimate) contributed by higher raw material and energy costs, and also other expenses. Effectively, EBITDA declined ~6% YoY to Rs5.24bn versus ~Rs5.6bn in 1QFY18 (above our estimate of ~Rs4.9bn). EBITDA/tn stood flat at Rs1,135 versus Rs1,333 as cost inflation and weak...
Inline quarter; East expansion will be a key monitorable Dalmia Bharat (DBEL) reported 1QFY19 results In-line with expectation. DBEL reported revenue growth of 16% YoY, led by volume growth (13% YoY) on rising demand in key markets. Blended realisations grew by 3.7% on a sequential basis and was 2.5% higher YoY. Cement EBITDA/t at INR1,135/t declined 19% YoY as variable cost escalations more than offset the realisations improvement. Net debt at INR 34.28bn, declined by INR 850mn in 1Q. Subsequently net debt-to-EBITDA remained stable at 1.71x and cost of debt remained stable at 8% (8.3% in 1QFY18). Company's 7.8MTPA expansion in Eastern India is on track and...
Dalmia Bharat Enterprises (DBEL) reported a healthy performance for 4QFY18 on double-digit volume growth YoY driven by higher volume. Volume grew ~14% YoY to 5.18mnmt (above our estimate of 4.96mnmt), mainly contributed by the eastern region. Realisation was up ~4% YoY/down 1% QoQ to Rs4,892/tn (marginally below our estimate of Rs4,915/tn) on account of better pricing in the eastern region. Overall revenues grew ~21% YoY to ~Rs 26.4bn. Operating costs increased ~10% YoY to Rs3,956/tn (marginally below our estimate of Rs4,000/tn) because of high raw material, energy, logistics and employee costs. Effectively, EBITDA grew ~7% YoY to Rs5.9bn...
Inline results; Next phase of growth from East Dalmia Bharat (DBEL) reported revenue growth of 21% YoY in 4QFY18, led by volume growth (14% YoY) on rising demand in key markets - East (+17% YoY), Northeast (+14% YoY), South (+14% YoY) and Maharashtra (+14% YoY). Realisations declined marginally on a sequential basis and was 3% higher YoY. EBITDA/t at INR1,137/t declined 6% YoY as cost escalations more than offset the realisations improvement. Net debt declined by INR4.4bn in 4QFY18 and net debt-to-EBITDA reduced to 1.72x from 2x QoQ with cost of debt declining to 8% (8.9% in 4QFY17). Company has embarked on its next phase of growth through...
Dalmia Bharat is in advanced stage of acquiring 2 companies under NCLT process Murli Industries (3 mnt in Maharashtra, Western region) and Kalyanpur Cements (1.1 mnt in Bihar, Eastern Region).
Dalmia Bharat (DBEL) reported healthy revenue growth YoY driven by higher volume in 3QFY18. Volume grew ~17% YoY to 4.15mt,mainly contributed by eastern region. However, realisation decreased ~7% YoY to Rs4,941/tn because of weak cement prices in DBEL's key markets. Overall revenues grew 21.4% YoY to ~Rs 20.9bn. Operating costs increased 7.4% YoY to Rs3,942/tn on account of high energy and raw material costs. Energy costs rose by ~17% YoY to Rs823/tn, on account of high pet coke prices. Raw material costs increased ~15% YoY to Rs816/tn following the rise in slag prices. Effectively, EBITDA increased ~10% YoY to Rs4.5bn (~Rs4.1bn in 3QFY17). Following lower realisation, EBITDA/tn declined 6%...
EBITDA/t declined 10% QoQ (-6% YoY) to INR1,095 in 3QFY18 due to higher other expenses and raw material costs ( an increase in slag prices by 62%YoY). Hence, EBITDA rose 10% YoY to INR4.5b (est. of INR 4.7b), with the margin at 21.7% (-2.3pp YoY, -2.3pp QoQ). Interest cost was lower by 33%YoY at INR1.42b due to a reversal of forex fluctuations and debt reduction by INR2.28b/INR7.37b in 3QFY18/9MFY18. Other income declined 25% YoY due to lower yield. With the tax rate at 32% (33% in 3QFY17), adj. PAT increased145% YoY to INR979m (est. of INR1.14b).
Net Sales stood at INR 18337 mn as against our estimates of INR 18150 mn; which was up by 7% y-o-y and down 10.4% q-o-q. Volumes for the quarter stood at 3.64 MT(est of 3.66 MT) which grew by 6.4% y-o-y. EBIDTA stood at INR 4414 mn which was up by 4.9% y-o-y and down 20.7% q-o-q and EBIDTA margin stood at 24.1% (est. of 23.4%) as...
Lower Operating Costs Lead To Good Operating Performance Dalmia Bharat (DBL) reported a good set of numbers yet again on account of lower-thanexpected operating costs in 2QFY18. DBL reported an increase in operating costs by 2% QoQ only against our estimate of 4% increase QoQ on account of lower power & fuel and freight costs. DBL uses low-cost inventory of pet coke and slag which helped the company to consume pet coke and slag purchased at old prices and therefore the increased prices of pet coke and slag did not get reflected properly. Reduction in lead distance from 295km to 270km also helped the company to reduce freight costs. Aggregate volume was up 9% YoY, in line with our expectation. Overall cement revenues grew 7% YoY to Rs18.3bn on the back of superior volume and better...
(-13% QoQ) to INR1,213 in 2QFY18, as higher realization was offset by cost push. Unitary cost/t increased 1% YoY due to higher power & fuel and raw material cost (higher prices of slag), partially offset by lower other expenses (-22% YoY). Hence, EBITDA rose 5% YoY to INR4.41b. Interest cost declined 14% YoY, as debt was reduced by INR5.1b in 1HFY18. PAT increased by 3.4x to INR1.06b, as the tax rate was lower at 31% in 2QFY18 v/s 59% in 2QFY17. Concall highlights: (a) Petcoke consumption rate was at USD85/t for 2QFY18 v/s spot prices of USD105/t. (b) Kiln productivity increased by 9% in...
India's cement demand & supply gap is likely to narrow due to enhanced government spending in housing & infra and slowdown in new capacities. DBL has expanded its capacity by 20 times within a decade to 25MT. Now the focus is on asset sweating and deleveraging. DBL has increased its market share from 8% in FY14 to 11% in FY17, its volume has grown at 23.2% CAGR Vs 4.1% of industry over last 5 years. The capacity utilisation has stabilized to 61% in FY17, it is anticipated to increase to 64% and 71% by FY18E and FY19E respectively....
