Dalmia Cement posts phenomenal growth for quarter ending June 2006

Dalmia Cement (Bharat) Limited has reported a phenomenal jump in net profits for the quarter ending in June 2006. During the quarter ended June 30, 2006, the company saw a 369 % rise in PAT over the corresponding period last year ie. from Rs10.72 to Rs.50.28 crores.

Sales for the quarter is at Rs.232.48 crores, a 53.8 % increase over the corresponding quarter. EBIDTA climbed up 212% to Rs 86.31 crores, as against Rs. 27.65 crores last year. The company's Earnings Per share is at Rs 12.10 for the quarter ended June 2006 against Rs.2.80 per share over the corresponding quarter - a growth of 332%.

The company has scaled up its cement capacity from 1.5 Million MT to 3.5 Million MT post successful implementation and commissioning of the brown field expansion at Dalmiapuram. With the current expansion, the company is confident of doubling their turnover to Rs.1200 crore in the current fiscal year.

Informed sources said, the company has been proactive in identifying opportunities in the segments they operate which are witnessing exponetial growth. The company hopes to increase the cement capacity to 10 Millioin MT . They have embarked on aggressive growth in sugar and already we had committed a capex of Rs.650 crores and in the process of building new sugar plants alongwith cogen power plant and ethanol plant which will get commissioned by Dec '06.

From a niche player in the TN and Kerala markets, Dalmia has grown into a significant player in these markets. Vajram, the flagship brand, along with Super Roof and Super foundation commands a combined market share of 12% from 7% 6 months ago.

On the anvil is expansion of sugar crushing capacity in Uttar Pradesh by 15,000 tons a day, taking the total crushing capacity to 22,500 tons. Sugar production capacity will go up to 3 lakh tons as a result of this expansion. The company also plans to set up an 80 KL / day distillery to produce ethanol from the molasses generated from the sugar plant and also setting up three cogen plants generating 79 MW of power.