Dalmia Bharat Ltd's Q1 FY25 results show strong operating cash flow and PBT growth, but PAT declines

The cement industry giant, Dalmia Bharat Ltd, has recently declared its financial results for the quarter ending June 2024. According to the latest report, the company’s performance has remained flat compared to the previous quarter. However, there has been a significant improvement in the overall score, which has increased from -9 to 3 in the last three months.

One of the key factors contributing to Dalmia Bharat’s positive performance is its strong operating cash flow. The company has recorded the highest annual operating cash flow of Rs 2,635.00 crore and has shown consistent growth in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

Another positive aspect of Dalmia Bharat’s financials is its quarterly profit before tax (PBT), which has grown by 36.7% compared to the average PBT of the previous four quarters. This shows a positive trend in the near term for the company.

On the other hand, the half-yearly profit after tax (PAT) has seen a decline of -35.48% year on year, indicating a negative trend in the near term. However, the company’s dividend per share (DPS) has remained the highest at Rs 9.00 in the last five years, and the dividend payout ratio (DPR) has also been consistently high at 152.68%. This shows that Dalmia Bharat is distributing a higher proportion of its profits as dividends to its shareholders.

In conclusion, while Dalmia Bharat’s financial performance for the quarter ending June 2024 has been flat, the company has shown positive trends in its operating cash flow and PBT. However, the decline in PAT is a cause for concern. Investors are advised to take note of these factors and make an informed decision. MarketsMOJO has given a ‘Sell’ call for Dalmia Bharat’s stock based on these financial results.