Total Installed Cement Capacity for 2024: As of March 31, 2024, Dalmia Bharat Limited’s total installed cement capacity was 44.6 million metric tonnes (MnT).12 The company also has a clinker capacity of 22.6 MnT.2
% of revenue from Cement for 2024: The share of revenue in FY24 from cement and cement-related businesses was 100%.3
Utilization rate for 2024: The cement capacity utilisation rate for FY24 was 63%.4
Production for FY 2024: The total cement production for FY24 was 27.33 MnT.4 Sales volume for FY24 was 28.8 MnT.56
EBITDA for FY 2024: EBITDA for FY24 was ₹2,639 crore.57
EBITDA per ton in 2024 (from annual report): EBITDA per tonne in 2024 was ₹917.5
Total Debt from the balance sheet for 2024 annual report: As of March 31, 2024, the total debt was ₹4,435 crore.8
Total Cash & Cash equivalents from the balance sheet for 2024 annual report: As of March 31, 2024, total cash and cash equivalents were ₹341 crore.9
Capacity Expansion Plans
Organic Expansion:
Dalmia Bharat is committed to its long-term goal of reaching 110-130 MnT capacity by 2031.101112
The company plans to detail a concrete roadmap with timelines for this expansion within the next 12 months.12131415
An interim capacity milestone of 75 MnT was initially set for FY27, but this may be revised.101216
Expansion plans will consider brownfield opportunities at existing plants, leveraging mines in Central India (Madhya Pradesh and Rajasthan) and North India, and new regions where Dalmia Bharat does not currently have a presence.141718
Specific upcoming projects include:
1 MnT expansion each at Ariyalur and Kadapa, nearing commercialisation. 10
2.4 MnT cement capacity in Assam and 0.5 MnT in Bihar, to be commissioned in FY25. 10151920
0.5 MnT expansion in Rohtas (Bihar) expected by the end of FY25. 1520
Debottlenecking projects to add 0.9 MnT of clinker capacity, with some delays. 21
Inorganic Expansion:
While the acquisition of Jaiprakash Associates’ cement assets (9.4 MnT) is no longer being pursued, the company remains open to inorganic growth opportunities.102223
Recent Developments from Conference Calls
Cost-Saving Initiatives:
Dalmia Bharat aims to reduce costs by ₹150-₹200 per tonne over the next three years.1924
Key cost reduction initiatives include:
Improving the cement-to-clinker ratio.25
Increasing the share of renewable power in the energy mix.25
Utilising captive coal mines (Brinda-Sisai to be commissioned in the current year and Mandla in the next year).2226
Reducing logistics costs by optimising lead distances and increasing direct dispatches.26
Capacity Expansion Initiatives:
Timelines and Milestones: The company has revised its capital expenditure guidance for FY25 to ₹3,000-₹3,300 crore, primarily for capacity expansion, land acquisition for future projects, and cost-saving initiatives.27282930
Other Developments:
Dalmia Bharat continues to strengthen its presence in Central India through a tolling arrangement with Jaiprakash Associates, selling 1.4 MnT of cement in FY24.31
The company is committed to increasing its blended cement production and share of trade sales
Looks slightly overvalues with EV/ton of $102.
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