Indian cement maker Dalmia’s Q4 profit more than doubles on low fuel costs

BENGALURU (Reuters) – Indian cement manufacturer Dalmia Bharat on Tuesday said its fourth-quarter profit more than doubled, aided by easing fuel prices and a pick-up in demand.

Consolidated net profit rose to 5.89 billion rupees ($71.90 million) in the quarter ended March 31 from 2.66 billion rupees a year earlier.

Analysts at Bob Capital Markets had noted that the cost of key fuel in cement making – imported coke and coal – had softened at the end of the third quarter of fiscal 2023, continuing into the fourth quarter.

Volumes, too, grew in the cement sector, aided by improving demand in the infrastructure segment.

The Nifty mid-cap 100 company’s revenue from operations rose 15.7% year-over-year to 39.12 billion rupees.

The total expenses stood at 36.05 billion rupees, with the power and fuel costs for the quarter falling to 8.71 billion rupees from 8.73 billion rupees.

Earlier in February, the Competition Commission of India (CCI) approved the proposed acquisition of certain assets of Jaiprakash Associates by Dalmia Bharat’s cement business unit.

The unit would acquire the target’s cement, clinker and power plants for 56.66 billion rupees, including debt, Dalmia Bharat said.

Dalmia Bharat’s shares have risen 3.12% so far this year, against a 1.04% decline in the Nifty Midcap 100 index.

India’s top cement maker and Dalmia rival UltraTech Cement is set to report its Q4 results on Friday.

($1 = 81.9200 Indian rupees)

(Reporting by Anisha Ajith in Bengaluru; Editing by Janane Venkatraman)