Dalmia Bharat's share price rises up to 3.5% post its Q2 results beat analysts expectations on lower costs

livemint.com:

Dalmia Bharat share price rose up to 3.5% in morning trades on Monday post its September quarter performance that was reported over the weekend. Dalmia Bharat reported a healthy volume growth of 6.6% year-on-year to 6.3 million tonne (mt) amidst strong cement demand. With improving cement prices in the country, the Dalmia Bharat’s per tonne profitability at ₹950 per tonne improved over ₹875 seen in the previous quarter and ₹653 in the year-ago quarter, as per analyst’s calculations.

The decline in costs, like that of freight and decline in other expenses, also helped leading to profitability improvement for Dalmia Bharat. Analysts at Jefferies India Pvt Ltd in their first cut post results said that the earnings season for the cement sector started on a tad positive note with Ebitda beat for Dalmia Bharat. The company reported 55% YoY growth in Ebitda for Q2, which was 7% better than Jefferies' expectations and was driven by lower costs for Dalmia Bharat.

Ebitda stands for earnings before interest tax depreciation and amortization. Also Read -HDFC Bank share price falls ahead of Q2 results today; here’s what to expect Overall cost per tonne for Dalmia Bharat had declined 8% YoY which was 4% lower than analysts' expectations largely driven by lower freight and other expenses. Dalmia Bharat recorded 6.6% YoY volume growth It could have been better but there was lower growth seen in East India said analysts.