Dalmia Bharat Limited , a prominent player in the Indian cement industry, has taken significant steps to reclassify one of its promoter group entities as a public shareholder. The company has submitted applications to both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) for this reclassification, marking a notable change in its shareholding structure.

Timeline of Events

The process for this reclassification began on July 3, when Dalmia Bharat received a request from a promoter group entity to be reclassified from the 'promoter and promoter group' category to the 'public' category of shareholders. Following this request, the company's Board of Directors convened on July 22 to discuss and approve the reclassification.

Board Approval and Application Submission

During the board meeting on July 22, Dalmia Bharat's directors approved the reclassification in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This approval paved the way for the company to proceed with the formal application process.

Formal Application to Stock Exchanges

On July 24, Dalmia Bharat took the next crucial step by submitting formal applications for the reclassification to both the NSE and BSE. This action was confirmed in an official communication to the stock exchanges, signed by Rajeev Kumar, the Company Secretary of Dalmia Bharat Limited.

Implications and Next Steps

The reclassification, if approved by the stock exchanges, would result in the promoter group entity being categorized as a public shareholder. This change could potentially impact the company's shareholding pattern and may have implications for corporate governance and regulatory compliance.

It's important to note that the reclassification is subject to approval from the stock exchanges. Shareholders and market observers will likely be watching closely for the exchanges' decision and any potential impact on Dalmia Bharat's stock performance and corporate structure.

Dalmia Bharat Limited, with its registered office in Dalmiapuram, Tamil Nadu, continues to be a significant player in the cement industry. As this reclassification process unfolds, it demonstrates the company's commitment to transparent corporate actions and compliance with regulatory requirements.

Investors and stakeholders are advised to keep an eye on further announcements from the company and the stock exchanges regarding the progress and outcome of this reclassification application.

Dalmia Bharat , a prominent player in the Indian cement industry, has unveiled an ambitious strategy to enhance its profitability and market position. The company is focusing on balancing volume growth with profit margins, aiming to achieve top-decile EBITDA per ton in the industry through enhanced cost leadership and improved sales performance.

Strategic Focus on Profitability

The cement manufacturer plans to exit unprofitable business segments as part of its strategy to optimize operations and boost overall profitability. This move is expected to streamline the company's portfolio and allow it to concentrate resources on high-performing areas.

Cost Leadership and Sales Performance

Dalmia Bharat's strategy revolves around two key pillars:

1. Enhanced Cost Leadership: The company is likely to focus on operational efficiencies and cost-cutting measures across its value chain.
2. Improved Sales Performance: This suggests a potential shift in sales strategies, possibly including better pricing, product mix optimization, or market expansion.

Recent Financial Performance

The company's strategic initiatives appear to be yielding positive results. In the most recent quarter:

• EBITDA Performance: Dalmia Bharat reported its highest-ever quarterly EBITDA of Rs 883.00 crore, marking a significant 31.90% increase year-over-year.
• EBITDA Margin: The EBITDA margin improved substantially to 24.30%, up from 18.50% in the same quarter of the previous year.
• Net Sales Realization (NSR): The company achieved an NSR per ton of Rs 5,193.00, representing a 6.60% increase year-over-year.

Operational Highlights

• Sales Volume: The company reported a sales volume of 7.00 million tonnes for the quarter.
• Cost Management: Dalmia Bharat maintained its position as one of the lowest total cost producers in the industry, with a total cost of Rs 3,932.00 per ton.

Expansion Plans

Dalmia Bharat has announced strategic investments to further strengthen its market position:

• A Rs 3,287.00 crore investment for a new 3.60 million tonnes per annum (MnTPA) clinker unit and a 6.00 MnTPA grinding unit in Kadapa, Andhra Pradesh.
• An additional 3.00 MnTPA bulk terminal in Chennai, Tamil Nadu.
• The Kadapa expansion is expected to be commissioned by Q2 FY28.

Sustainability Initiatives

The company continues to make strides in its sustainability efforts:

• Commissioned 26.00 MW of renewable energy capacity under Group Captive in the recent quarter.
• Total operational renewable energy capacity increased to 294.00 MW.
• ICRA ESG upgraded Dalmia Bharat's Combined ESG rating to 80 (Exceptional), highlighting the company's leadership in sustainability within the Indian cement sector.

Financial Position

Dalmia Bharat maintains a strong financial position:

• Net Debt to EBITDA ratio stood at 0.33x as of the most recent quarter-end.
• The company issued Non-Convertible Debentures (NCDs) worth Rs 950.00 crore at a weighted average cost of 7.50%.

With these strategic initiatives and robust financial performance, Dalmia Bharat appears well-positioned to achieve its goal of top-decile EBITDA per ton in the industry. The company's focus on cost leadership, coupled with its expansion plans and sustainability efforts, sets a strong foundation for future growth and profitability.