Dalmia Bharat Swings to 205 Crore Loss in Q2 on One-Off Charges

what happened

Moody's reports that Dalmia Bharat booked a consolidated loss of 205 crore rupees for the September quarter. The result was driven by an exceptional charge of 339 crore tied to asset impairments and a voluntary exit programme for eligible staff. India's fourth-largest cement maker also recorded an exceptional loss in the June quarter, of 182 crore, mainly linked to its purchase of cement assets from Jaiprakash Associates.

Sales volume grew 3% year on year to 7.1 million tonnes, and revenue from operations rose 4% to 3,563 crore. EBITDA, however, dropped 29% to 493 crore as costs climbed, mainly power and fuel, which jumped 22% to 874 crore. EBITDA per tonne fell 31% to 698, while net realisation per tonne edged up 1% to 5,042.

CFO Yatin Malhotra blamed weak demand in several key markets and macroeconomic cost pressures. He said the company hopes firmer cement prices and cost-control efforts will ease the squeeze. Shares closed 2.1% higher at 1,628.80 on the BSE, and the company declared an interim dividend of 4 per share.

why it matters

The figures show energy and fuel costs eating into revenue gains across India's cement sector. Investors will watch whether pricing recovery and cost cuts can rebuild margins in coming quarters, since one-off charges keep bottom-line results volatile.

market impact

Indian cement stocks: higher power and fuel costs pressure margins, while weak demand limits volume gains

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