Deccan Cements Limited (DCL) has announced several key decisions following its board meeting held on August 12. The company's Board of Directors approved the standalone and consolidated unaudited financial results for the quarter ended June 30, marking a significant milestone in its fiscal calendar.

Financial Performance

For the quarter ended June 30, Deccan Cements reported a consolidated revenue from operations of Rs. 15,055.95 lakhs, compared to Rs. 17,215.27 lakhs in the same quarter of the previous year. The company's profit before tax stood at Rs. 2,046.40 lakhs, a substantial increase from Rs. 431.18 lakhs in the corresponding quarter.

Dividend and AGM Details

The board has set important dates for shareholders:

• Record Date for Final Dividend: September 16
• 45th Annual General Meeting (AGM): September 23 (to be conducted via video conferencing)
• Cut-off Date for Shareholder Voting Eligibility: September 16
• Final Dividend Payment Date (subject to shareholder approval): October 13

Appointment of Cost Auditors

In a strategic move, the board appointed M/s Aruna Prasad & Co, Cost Accountants from Chennai, as the company's cost auditors for the next financial year. The firm, led by Aruna Prasad, brings over 30 years of experience in cost audit and accounting for listed and unlisted companies.

Key Financial Highlights

The company's performance shows a significant improvement in profitability despite a slight decrease in revenue compared to the same quarter last year.

Deccan Cements Limited continues to focus on its core business of manufacturing and selling cement, operating under a single reportable segment as per IND AS 108 'Operating Segments'.

The board meeting, which commenced at 12:30 PM (IST) and concluded at 1:15 PM (IST), set the stage for the company's financial and operational activities for the coming months. Shareholders and investors will be keenly watching the upcoming AGM for further insights into the company's strategies and future outlook.

Deccan Cements , a prominent player in the Indian cement industry, has reported a mixed bag of financial results for the first quarter. The company's performance shows a significant improvement in profitability despite a decline in revenue, highlighting its ability to manage costs effectively in a challenging market environment.

Financial Highlights

• Revenue: Deccan Cements reported a revenue of ₹150.56 crore for Q1, down from ₹172.15 crore in the same period last year, marking a 12.5% year-over-year decline.
• Net Profit: The company's standalone net profit surged to ₹15.35 crore, compared to ₹2.81 crore in the corresponding quarter of the previous year, representing a 446.3% increase.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose to ₹27.90 crore from ₹11.30 crore year-over-year.
• EBITDA Margin: The EBITDA margin expanded substantially to 18.52% from 6.58% in the previous year's corresponding quarter.

Operational Performance

Despite the revenue decline, Deccan Cements demonstrated strong operational efficiency:

• Cost Management: The company's ability to control costs is evident from the significant improvement in EBITDA and net profit, despite lower revenue.
• Profitability Focus: The substantial increase in net profit and EBITDA margin suggests a strategic focus on high-margin products or operations.

Corporate Developments

The company's Board of Directors, in a recent meeting, approved several key items:

1. Unaudited Financial Results: The Board approved the standalone and consolidated unaudited Financial Results for the quarter.
2. Dividend Record Date: September 16 has been fixed as the Record Date for the payment of Final Dividend, subject to shareholder approval.
3. Annual General Meeting: The 45th Annual General Meeting is scheduled for September 23, to be held through Video Conferencing (VC) or Other Audio-Visual Means (OAVM).
4. Cost Auditors: M/s. Aruna Prasad & Co, Cost Accountants, Chennai, have been appointed as Cost Auditors for the upcoming Financial Year.

Market Outlook

While the revenue decline indicates challenging market conditions, Deccan Cements' ability to significantly improve profitability showcases its resilience and effective management strategies. The cement sector continues to face headwinds from fluctuating input costs and demand variations, but companies focusing on operational efficiency are likely to navigate these challenges more effectively.

Investors and market analysts will be closely watching Deccan Cements' performance in the coming quarters to see if the company can maintain its profitability momentum while potentially recovering on the revenue front.

Financial Table

The company's performance in Q1 sets a positive tone, with improved profitability metrics despite revenue challenges. Stakeholders will be keen to see how Deccan Cements builds on this foundation in the upcoming quarters.