Dalmia Bharat builds up

Dalmia Bharat posted a very performance for Q4FY15, helped by a strong operational working and tax a tax write back of Rs.23 crore. The company ended the quarter with a consolidated net profit of Rs.47 crore compared to the loss of Rs.5 crore in previous Q4. Sales volume rose 24% (YoY) 2.34 million tonnes. Total income during the quarter rose 56% at Rs.1294 crore. EBITDA was at Rs.291 crore, up 160% and margins jumped up sharply from 13% to 22%. Reduction in power and fuel costs has been a major contributor wherein there has been a 19% reduction in its per ton fuel cost. The company ended FY15 with a turnaround, posting a consolidated net profit of Rs.3 crore v/s loss of Rs.8 crore in FY14.

The market is reacting positively to these numbers. There has been an over 8.5 times surge in volumes and the stock is now 10% up at Rs.490.25, with an intra day high at Rs.499. Its 52-week high is at Rs.567.