Dalmia Cement Q1 profit after tax down 29.6% due to higher expenses

Cement manufacturer Dalmia Bharat on Thursday reported a 29.6 per cent decline in its profit after tax (PAT) for the June-23 ended quarter (Q1FY24) on the back of higher expenses. The management expects gradual recovery in profitability with stable cement prices and softened commodity costs.

For Q1FY24, Dalmia reported a PAT of Rs 144 crore, down 29.6 per cent from the corresponding period a year ago. Revenue from operations for the quarter under review rose 9.8 per cent to Rs 3624 crore. Total expenses, however, rose higher at Rs 3496 crore, 14 per cent up from a year ago.

The company met street expectations on revenue but missed the profit guidance. In a Bloomberg poll 14 analysts estimated a revenue of Rs 3693 crore and 12 analysts estimated an adjusted net income of Rs 240 crore.

 

“Though we have strong conviction in our ability to outperform the industry, this quarter has been a disappointment as against our expectations. Having said so, we remain focused on seizing the emerging demand opportunities, sustaining our position as a cost leader and delivering sustainable return to our stakeholders,” said Puneet Dalmia, managing director and chief executive officer for Dalmia Bharat.

Mahendra Singhi, managing director and chief executive officer for Dalmia Cement added,” Given the promising outlook for cement demand, expectation of stable cement prices during the rest of the year and softening in commodity costs, we anticipate a gradual improvement in profitability.”