Dalmia Bharat : DBL Press Release FY17

New Delhi,10th May, 2017

Growing Naturally - Strong Performance

Dalmia Bharat Limited today announced its audited consolidated financial results for the Quarter and Year ended March 31,2017.

Particulars (Rs. In Cr.)	Q4FY16	Q4FY17	Growth	FY16	FY17	Growth
Sales Volume (in MnT)	3.88	4.55	17%	12.79	15.30	20%
Total Income from Operations	2,109	2,433	15%	7,262	8,348	15%
EBITDA	512	552	8%	1,592	1,902	19%
Cash Profit	368	423	15%	1,091	1,311	20%
Profit Before Tax	201	272	36%	510	708	39%
Profit After Tax	95	184	94%	190	345	81%

I EBITDA (Rs./Tonne) 1,361I 1,248 1 1,265 1 1,258 1

IEBITDA Margin 21.0% 12s.2% 1(119 bps) I24.8% 125.7% 1a6bps I

Key Highlights for the year

• The Company had initiated corporate restructuring during the year, with an aim to achieve consolidation and simplification of structure. The restructuring process is expected to get completed in FY18.

• The Company during the year paid down the totalGross Debt by Rs.722 crore, higher than the scheduled repayments.

• The Net Debt as on March 31, 2017 stood at Rs.5,233 crore, reduced by Rs.751 crore during the year which resulted in the Net Debt to EBITDA at 2.Sx.

• KKR sold 75,00,000 shares held by itin Dalmia Bharat Limited(DBL) on April 21, 2017.DBL received Rs.588 er. from KKR as per the terms of theplacement agreement approved by the shareholders in February, 2016. Pursuant to this, Net Debt to EBITDA stands at 2.Sx as on date.

Dalmia Bharat Limited

11th &12th Floors,Hansalaya Building, 15, Barakhamba Road, New Delhi -110 001,India.

t91 11 23465100 {91 11 23313303 w www.dalmiabharat.com GIN: L40109TN2006PLC058818

Registered Offi ce: Dalmiapuram, Dist. 1lruchirapal/i, Tamil Nadu-621 651, India ADalmia Bharat Groupcompany, www.dalmiabharat.com

Financial Performance

The Company delivered strong performance amidst challenging market conditions. Sales volume for the year was up 20% YoY led by focused marketing efforts. Our market share in South &North East India improved significantly.

Higher EBITDA is on account of operational efficiencies, effective costs controls and flexibility in procurement and fuel usage. Despite increase in fuel prices, variable cost of production was lower by 6% YoY at Rs.1,320/T. Fluid &Domestic petcoke was introduced in FY17 and its usage for the year was 7% and for the·quarter it stands at 15%.

There were number of initiatives undertaken to drive savings in power cost. The power consumption cost reduced by 23% YOY to Rs.3.9/kwh in FY17. The usage of captive renewable (solar power) and open access power helped in bringing enhanced efficiencies.

The Company has invested in making the processes digitized.The major benefit of the same has been realized in the area of logistics where we have been able to further optimize transport mode and market mix. It was a customer centric initiative with intent to provide greater satisfaction to dealers and end

• consumers. The freight cost has witnessed reduction of 3% YoY for the year despite increase in diesel prices.

  On absolute basis fixed cost increased by 13% during the year. However, higher volumes helped in reducing the Fixed cost on per tonne basis from Rs.978/T to Rs.962/T.

  We reinforced our commitment towards building strong brand value through launch of DSP (super premium cement) and as of date it comprises 10% of overall retail sales.

  Outlook

  We expect cement demand to follow an upward trajectory due to concerted efforts by the Central Government on Infrastructure development and affordable housing. The Industry expects to witness less capacity additions in future due to increased entry barriers.

  Dalmia Bharat has invested in building capabilities and is expected to grow at a steady growth rate, creating value to all our stakeholders.

  For Dalmia Bharat Limited

  Himmi Gupta Investor Relations

  Dalmia Bharat Limited

  11th &12th Floors, Hansalaya Building, 15, Barakhamba Raad, New Delhi -110 001, India.

  t91 11 23465100 (91 11 23313303 w www.dalmiabharat.com CIN :L40109TN2006PLC058818

  Registered Office:Dalmiapuram, Dist. Tiruchirapalli, Tamil Nadu -621 651, India

  • A Dalmia Bharat Groupcompany,www.dalmiabharat.com