Dalmia Bharat Q4 Net Profit Rises 37% Despite Revenue Dip; Announces ₹5 Dividend, Eyes Expansion
Cement giant Dalmia Bharat has published its consolidated quarterly and annual results for the year ended March 31, 2025. The results depict a significant surge in net profit for the quarter, while revenue declined. Besides, the company also reported other important developments like crossing major capacity milestones and laying out future growth plans.
Q4 FY25 Financial Highlights
For the period ended March 31, 2025 (Q4 FY25), Dalmia Bharat posted a consolidated net profit of ₹439 crore, increased by 37.19% from ₹320 crore during the same period last year. Income from operations for Q4 FY25 stood at ₹4,091 crore, reflecting a 5.0% year-on-year decline from ₹4,307 crore in Q4 FY24. Despite the revenue dip, EBITDA grew by 21.3% year-on-year to ₹793 crore in Q4 FY25.
FY25 Full-Year Performance
Full-year performance for FY25 saw consolidated net profit at ₹699 crore, marking an 18.1% decline compared to ₹853 crore in FY24. Sales (Income from Operations) during FY25 were ₹13,980 crore, down 4.8% from ₹14,691 crore during FY24, or down 4.84%. Sales volume for the year rose modestly by 2.0% to 29.4 MT.
MD & CEO’s Commentary
Mr. Puneet Dalmia, Managing Director & CEO, spoke about the performance, highlighting the strength of the Indian economy and optimism in sound cement demand supported by robust GDP estimates, greater capital expenditure commitment, and growing disposable income. He recognized that profitability was muted in the year owing to low demand and weak pricing but remained optimistic about generating profitable growth in the future based on better volumes, enhanced realisations, and cost leadership.
CFO’s Operational Insights
Chief Financial Officer, Mr. Dharmender Tuteja, clarified the 3% year-on-year fall in Q4 cement volumes was largely due to the elimination of volumes from the JP tolling arrangement. But he pointed to an enhancement in sales quality, backed by a greater proportion of trade sales and enhanced contribution from premium products. The CFO attributed the 21% year-on-year EBITDA growth in the quarter to continued focus on cost leadership initiatives, including an increase in renewable power capacity. The CFO informed that the firm is ready to face its next round of growth based on a healthy balance sheet and strong expectations of profitability.
Major company developments were as well:
Capacity Expansion Milestone: The company ordered 2.4 MT cement capacity in Lanka, Assam, and 0.5 MT capacity in Rohtas, Bihar, taking Dalmia Bharat's installed capacity to 49.5 MT. This represents the completion of a landmark capacity milestone.
Strategic Investment for Growth: A strategic investment of around ₹3,520 crore was announced towards the next expansion phase. This involves the setting up of a 3.6 MTPA clinker unit with a 3 MTPA grinding unit in the existing Belgaum plant in Karnataka, along with a new 3 MTPA greenfield split grinding unit in Pune, Maharashtra. These facilities are intended to serve primarily new Western India markets, with the Belgaum facility also serving underpenetrated Southern Maharashtra markets and the Pune facility targeting underpenetrated Western Maharashtra markets.
Renewable Energy Initiatives: In renewable energy projects, Dalmia Bharat ordered a 2.2 MW captive solar power plant and installed 13 MW under Group Captive pacts, raising the total operating RE capacity to 267 MW. Total operational renewable capacity, including group captive schemes, will be 595 MW by FY26 end.
Dividend Proposal for FY25: The Board has proposed a final dividend of ₹5 per share (250%) for FY 2024-25, subject to shareholders' approval.
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