Bhubaneswar: The Board of Directors of cement major Dalmia Bharat Group today approved the implementation of the scheme of Arrangement & Amalgamation of (Odisha Cement Ltd ) OCL India Limited and Dalmia Bharat Limited (”DBL”). The company is planning to list the amalgamated entity by early 2019 Calendar year.
Due to rising input and fuel prices, the company has witnessed a drop in net profit to Rs.2 Crores in the 2nd Quarter from 18 Crores in the corresponding quarter last fiscal. Its total income from operations during the quarter has increased to Rs. 2158 Crore from Rs.1836 Crore in Q2 of last fiscal. Meanwhile, in the first 6 months of the current fiscal, the company’s net profit has also dropped to Rs. 56 Crore from Rs.90 Crores a year ago.
The company registered volume growth of 14% and 13% YoY respectively in 02 FY19 and H1 FY19. The Net Sales Realization improved 3% YoY and 1% YoY for the quarter and half year ended Sep 30, 2018 respectively. Our variable Cost has risen 22% on YoY basis for the quarter on account of similar increase in pet coke and slag rates. We expect our variable cost to soften in ensuing quarters on account of softening of petcoke prices ($96/T in Oct’18 vs. $103/T in (12 FY19).
Despite increase in diesel prices, we have been able to contain our logistics cost. Benefits of 25% increase in axle load expected to be realized in QB FY19 for sales undertaken in Southern region. This would help us to partly mitigate any further impact on logistics cost due to increased diesel prices. The company is focused towards increasing the usage of AIternate fuel. We have been able to achieve continuous improvement in Alternate fuel usage. The same stands at 5.5% in Q2 FY19.