Dalmia Bharat has reported a 173 per cent rise in net profit to INR3.95bn (US$45.72m) in the 1QFY25-26, compared INR1.45bn in the YoY period.  The year-ago period included a provision of INR1.13bn to account for losses arising from a tolling arrangement with Jaiprakash Associates (Jaypee Group) for acquisition of its cement plants. With the latter going into corporate insolvency, Dalmia Bharat had provisioned it as an exceptional item (loss) during the year-ago quarter (1QFY24-25).

EBITDA earnings saw a 32 per cent jump to INR8.83bn YoY from INR6.69bn, although income from operations was flatter at INR36.36bn. Cement sales (volume) saw a six per cent decline to 7Mt, as against 7.4Mt in the comparative quarter last fiscal.

Fresh investment
The company was said to be working on finalising a new 6Mta greenfield expansion in Jaisalmer to access the north Indian market, with commissioning targeted for FY28, but the latest reports suggest this may have been placed on hold. It remains keen to secure the Jaiprakash acquisition as part of its broader strategy, with its assets being the lynchpin of Dalmia’s aggressive growth blueprint.

Dalmia Bharat and Adani Enterprises are the two top bidders for the Jaiprakash assets, which in addition to cement and power plants include hotels, land parcels, an F1 racing track and golf course. Potentially this could add another 9-10Mta to Dalmia Bharat’s capacity, with an integrated plant in Rewa (Madhya Pradesh), a joint venture with SAIL, BJCL (Bokaro Jaypee Cement Ltd) and a clinker unit in Uttar Pradesh (which is currently under arbitration with Ultratech).

But it is also making contingency plans and the current year has seen fresh capital investments of about INR68bn, adding 12Mta of cement capacity across the south and west regions of India.