Dalmia Refractories Unlisted Shares
DALMIA REFRACTORIES LIMITED (DRL)
DRL is one of the oldest and widely respected refractory companies in India. It enjoys market leadership in High Alumina based products in the cement industry with a market share of more than 50%. Besides being the market leader in India, the refractory company also supplies its products to the MENA (Middle East & North Africa) region.
The company is headquartered at New Delhi and operates three manufacturing plants located at Dalmiapuram (Tamil Nadu), Khambalia (Gujarat) and Katni (Madhya Pradesh). The Sales and Customer Service team is located at strategic locations across India for faster service to our customers.
Over the years, the refractories company has evolved from being just a refractory supplier to a refractory solution provider and has built expertise in areas beyond refractory manufacturing. And that’s why DRL has become a role model for the entire refractories industry in India; every refractory plant of DRL is an example of excellence and product leadership is a key reason for Dalmia Refractories to be amongst the top refractories manufacturers in India year after year.
Financials of Dalmia Refractories Limited Unlisted Shares:
(Fig in Lakhs) Revenue and PAT Analysis
| Year | Revenue | EBITDA | OPM | PAT | NPM | Shares | F.V. | EPS |
| 2017 | 16,125 | 1,079 | 7% | 365.54 | 2% | 31.52 | 10 | 11.60 |
| 2018 | 18,326 | 84 | 0% | -637.73 | -3% | 31.52 | 10 | -20.23 |
| 2019 | 24,602 | 1,979 | 8% | 394.71 | 2% | 31.52 | 10 | 12.52 |
| 2020 | 45,000 | 4600 | 10% | 1800 | 4% | 31.52 | 10 | 57 |
Debt and Net-Worth Analysis
| Year | Long-Term Debt | NW | Debt/NW | RONW |
| 2017 | 2228 | 5,806 | 0.38 | 6% |
| 2018 | 2518 | 21,590 | 0.12 | -3% |
| 2019 | 13803 | 19,233 | 0.72 | 2% |
| 2020 | 15000 | 16900 | 0.88 | 10% |
FY18-19 Performance Analysis:
a) The company has recently commissioned a state-of-the-art manufacturing facility in Katni as part of its JV with Seven Refractories of Europe. The JV called Dalmia Seven offers advanced monolithic refractory solutions to customers in India. Also, through the recent acquisition of GSB Group of Germany, Dalmia Refractories is now the leading supplier of lances and snorkels to steelmakers in Europe.
b) Revenues stood at Rs. 24,142 Lakhs, increasing by 34%, compared to Rs. 18,076 Lakhs last year.
c) The Company’s profitability improved considerably as it made a profit of Rs. 394.71 lakhs in FY 2018-19 as against a loss of Rs. 637.73 lakhs during the previous year, on a consolidated basis.
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Dalmia Bharat Refractories Limited Unlisted Share – Company Overview
The old name of DALMIA BHARAT REFRACTORIES LIMITED was formerly DALMIA REFRACTORIES LIMITED. Pursuant to the Scheme of Amalgamation of Dalmia Refractories Limited (DRL) and GSB Refractories India Private Limited (GSB India) with Dalmia Bharat Refractories Limited (DBRL) and their respective shareholders and creditors (‘Scheme’), as approved by the NCLT Chennai vide its Order dated 3rd February 2022, Equity Shareholders of Dalmia Refractories Limited (DRL) received the equity shares of DALMIA BHARAT REFRACTORIES LIMITED (DBRL), in the ratio of 768 equity shares of Rs. 10/- each in the DALMIA BHARAT REFRACTORIES LIMITED (DBRL) for every 100 equity shares of Rs. 10/- each held in DALMIA REFRACTORIES LIMITED (DRL) (‘Fair Share Exchange Ratio’). The record date of the same was 11th March 2022.
Earlier it was known as Shri Nataraj Ceramics and Chemical Industries Limited. It is a part of Dalmia Bharat Group, one of India’s oldest conglomerates. Dalmia Refractories Limited is a pioneer in Alumino-Silicate refractories with a market share of over 50% in Alumina bricks used in the manufacturing of cement.
Today, the company is a preferred partner for the big Indian Cement Manufacturers. The product portfolio of the company includes Refractory Bricks for Cement Plant, Fire Clay Bricks, High Alumina Bricks, Special Quality Bricks, Conventional Castables, Low Cement Castables, Special Castables, and Ramming Masses & Mortars.
The Joint Venture of the company, Dalmia Seven offers advanced monolithic refractory solutions to customers in India. Also, through the recent acquisition of GSB Group of Germany, Dalmia Refractories is now the leading supplier of lances and snorkels to steelmakers in Europe. The company also executes supply and installation projects for various green- and brown-field projects for customers across the globe.
Dalmia Refractories Limited is headquartered in New Delhi and currently operates five manufacturing plants including the one in Germany. Dalmia Refractories Limited’s products are exported to places such as South America, Brazil, Argentina, Africa, the Middle East, Canada, Spain, etc.
The equity shares of Dalmia Refractories Limited were listed on the National Stock Exchange of India Limited. However, the trading in the equity shares of Dalmia Refractories Limited was suspended from National Stock Exchange. The company’s equity shares are still listed on the Metropolitan Stock Exchange of India Limited (‘MSEI’) and The Calcutta Stock Exchange Limited (‘CSE’).
Dalmia Bharat Refractories Limited Incorporation Details
CIN of Dalmia Bharat Refractories |
L24297TN1973PLC006372 |
Registration Date of Dalmia Bharat Refractories |
21 June 1973 |
Category/Sub-category of Dalmia Bharat Refractories |
Public Company Limited by Shares |
Dalmia Bharat Refractories Registered office address and contact details |
Dalmiapuram, P.O. Kallakudi, Tiruchirapalli,
Tamil Nadu-621651. Tel No: 011-23457100 E-mail:snccil@dalmiarf.com |
Dalmia Bharat Refractories Registrar and Transfer Agent address and contact details |
KFin Technologies Private Limited
Karvy Selenium Tower B, Plot 31-32, Financial District, Nanakramguda, Serilingampally, Hyderabad – 500032 Tel No: 040-67162222; E-mail: madhusudhan.ms@kfintech.com |
Dalmia Bharat Refractories Limited Principal Business Activities
| Name and Description of main products/services | NIC Code of the product/service | % to the total turnover of the Company |
| Manufacture & sale of Refractories, Castables
and Mortars |
2391 | 92.51% |
Dalmia Bharat Refractories Limited Board of Directors
Mr. Sameer Nagpal, Managing Director
Mr. Raj Kamal Saraogi, Non-Executive Independent Director
Mr. Deepak Thombre, Independent Director
Mr. Chandra Narain Maheshwari, Non-Executive Director
Ms. Rachna Goria, Non-Executive Director
Dalmia Bharat Refractories Particular of Subsidiary and Joint Venture
| Name of the Company | Joint Venture/Subsidiary | % of shares held |
| Dalmia Seven Refractories Limited | Subsidary | 51% |
| Dalmia Mining and Services Private Limited | Wholly Owned Subsidiary | 100% |
| OCL China Limited | Step Down Subsidiary through OCL Global Ltd. | 90% |
| Dalmia GSB Refractories GmbH | Wholly Owned Subsidiary | 100% |
| Dalmia OCL Limited | Subsidiary | 100% |
| OCL Global Limited | Wholly Owned Subsidiary | 100% |
Cement Industry Outlook
The cement industry, a vital component of the construction sector, continues to experience steady growth. Increasing urbanisation, infrastructure development, and housing projects drive the demand for cement, making it an attractive opportunity for us. India Ratings & Research forecasts that cement demand will grow by up to 9% in the 2024 financial year that started in April 2023, due to continued government infrastructure spending. Despite mounting inflation and a large number of capital expenditure projects in progress, it expects cement company profits to recover due to slowing increases in energy costs, according to the
Press Trust of India. The current prediction for the 2024 financial year follows a growth estimate of 9% in the 2023 financial year. We intend to leverage our expertise and resources to invest strategically in this industry, capturing market share and capitalising on the growing demand.
Dalmia Bharat Refractories Limited Balance Sheet (Rs. in Crore)
| Particulars | 31st March 2023 | 31st March 2022 | 31st March 2021 |
| Assets | |||
| Non-Current Assets | |||
| Property, plant and equipment | 96.80 | 256 | 142.17 |
| Right of use assets | 15.82 | 20.48 | – |
| Investment property | 0.21 | 0.21 | – |
| Capital work – in – progress | 0.02 | 21.83 | 2.02 |
| Intangible assets | 125.66 | 286.09 | 63.87 |
| Financial assets | 1839.76 | 106.38 | 111.95 |
| Deferred tax assets (net) | 13.58 | – | 2.71 |
| Other non-current assets | – | 0.30 | 0.13 |
| Total Non-Current Assets | 2 091.85 | 6 91.29 | 322.88 |
| Current Assets | |||
| Inventories | 66.68 | 392.01 | 84.63 |
| Financial assets: | |||
| Investments | 425.07 | – | – |
| Trade receivables | 148.26 | 337.51 | 91.51 |
| Cash and cash equivalent | 128.15 | 50.11 | 34.10 |
| Other financial assets | 212.60 | 7.55 | 9.15 |
| Other current assets | 24.24 | 39.22 | 12.89 |
| Tax assets | – | 17.83 | 1.02 |
| Assets held for disposal | – | 0.33 | 0.01 |
| Total Current Assets | 1005 | 844.23 | 233.35 |
| Total Assets | 3096.85 | 1535.85 | 556.23 |
| Equity And Liabilities | |||
| Equity | |||
| Equity Share Capital | 44.20 | 44.20 | 3.15 |
| Other Equity | 2231.81 | 894.59 | 243.46 |
| Non-Controlling Interest | 5.82 | 12.46 | 5.85 |
| Total Equity | 2281.83 | 951.25 | 252.46 |
| Liabilities | |||
| Non-Current Liabilities | |||
| Borrowings | 58.85 | 80.88 | 94.93 |
| Other Financial Liabilities | 1.52 | 3.01 | 1.45 |
| Deferred Tax liabilities | 0.33 | 16.08 | 17.36 |
| Provisions | 9.28 | 20.18 | 4.01 |
| Total Non-Current Liabilities | 69.98 | 120.15 | 117.77 |
| Current Liabilities | |||
| Borrowings | 30.54 | 77.77 | 39.23 |
| Lease liabilities | 0.87 | 1.49 | – |
| Trade payables | 183.70 | 282.74 | 111.25 |
| Other financial liabilities | 11.63 | 8.58 | 14.54 |
| Tax liabilities | 416.30 | – | 6.33 |
| Other current liabilities | 22.83 | 62.19 | 14.40 |
| Provisions | 79.17 | 31.68 | 0.22 |
| Total Current Liabilities | 745.04 | 464.45 | 185.99 |
| Total Liabilities | 815.02 | 584.60 | 303.77 |
| Total Equity And Liabilities | 3096.85 | 1535.85 | 556.23 |
Dalmia Bharat Refractories Limited Profit & Loss Statement (In Rs. Crore)
| Particulars | 2023 | 2022 | 2021 |
| Revenue from Operations | 345.75 | 300.41 | 394.68 |
| Other Income | 12.92 | 0.79 | 2.62 |
| Total Income | 358.67 | 301.20 | 397.30 |
| EBITDA | 1772.20 | 48.22 | 36.57 |
| EBITDA margins | 494.10% | 16% | 9.20% |
| Finance Cost | 12.81 | 3.94 | 9.29 |
| Depreciation | 35.81 | 8.88 | 15.92 |
| Other expenses | 320.48 | 253.76 | 403.78 |
| Profit/Loss before Tax | 1723.58 | 35.40 | 11.36 |
| Net Tax expense | 416.99 | 12.56 | 4.71 |
| Profit After Tax (PAT) | 1306.59 | 22.84 | 6.65 |
| PAT margins | 364.28% | 7.58% | 1.67% |
| EPS (In Rs.) | 295.16 | 4.84 | 21.77 |
Dalmia Bharat Refractories Cash Flow Statement for the last two years (Rs. in Crore)
| Particulars | 31st March 2023 | 31st March 2022 |
| A. Cash flow from operating activities : Profit/ (loss) before tax from ordinary activites before exceptional items |
||
| -Continuing operations | (10.41) | 34.62 |
| -Discontinuing operations | (25.87) | 0.77 |
| Profit before taxation and before exceptional items | (36.28) | 35.39 |
| Exceptional items | 1,759.87 | |
| Profit before taxation | 1,723.59 | 35.39 |
| Adjustments for : | ||
| Depreciation and amortisation expense | 46.73 | 48.01 |
| Provision no longer required written back | (0.09) | (3.18) |
| Bad debts | 0.28 | 2.54 |
| Gain on Slump Sale | (1,759.87) | 0 |
| Impairment of intangible assets | 25.00 | 0 |
| Provision for doubtful debts | 0.34 | 0 |
| Provision for warranty | 15.63 | 2.26 |
| Finance cost | 18.32 | 11.55 |
| Interest income | (8.63) | (1.76) |
| Dividend income | (0.57) | (0.34) |
| Rates and taxes | 72.20 | 0 |
| Gain on investments carried at fair value through statement of profit and loss | (1.23) | 0 |
| (Profit) / loss on sale of property, plant and equipment | (0.26) | (0.12) |
| Other | 0 | 0.55 |
| Operating profit before working capital changes | 131.45 | 94.90 |
| Working capital adjustments | ||
| Decrease/(Increase) in inventories | (54.04) | (143.11) |
| Decrease/(Increase) in trade receivables | (127.14) | (128.04) |
| Decrease/(Increase) in loans | 0.02 | (0.51) |
| Decrease/(Increase) in other financial assets | (33.48) | 61.24 |
| Decrease/(Increase) in other assets | (17.53) | (9.16) |
| (Decrease)/Increase in trade payables | 282.40 | 108.55 |
| (Decrease)/Increase in other financial liabilities | 4.77 | (3.10) |
| (Decrease)/Increase in provisions | (31.58) | 23.80 |
| (Decrease)/Increase in other liabilities | 0.15 | 45.93 |
| Cash generated/(used) from operations | 23.57 | (44.40) |
| Income taxes paid (net) | (14.58) | (30.95) |
| Net cash flow generated from operating activities | 140.44 | 19.56 |
| B. Cash flow from investing activities | ||
| Purchase of property, plant, equipment and intangible assets | (19.34) | (47.14) |
| Proceeds from sale of property, plant and equipment | 3.53 | |
| Interest income | 8.63 | 1.76 |
| Dividend income | 0.57 | 0.34 |
| Purchase of current investments | (1,075.00) | 0 |
| Proceed from sale of current investments | 647.26 | 0 |
| Investment in subsidiary | (0.02) | 0 |
| Other bank balances | (87.87) | 0 |
| Proceeds on slump sale of business | 393.29 | 0 |
| Net cash flow generated from investing activities | (128.96) | (45.04) |
| C. Cash flows from financing activities | ||
| Proceeds from issue of equity shares | 0 | (2.48) |
| Other receipts | 1.00 | 0 |
| Dividend paid | (2.21) | (0.32) |
| Proceeds/(Repayment) of borrowings (net) | 110.47 | 8.48 |
| Repayment of lease liability | (24.33) | (13.22) |
| Interest paid | (18.36) | (11.55) |
| Net cash flow generated from financing activities | 66.57 | (19.09) |
| Net increase/(decrease) in cash and cash equivalents (A+B+C) | 78.04 | (44.58) |
| Cash and cash equivalents at the beginning of the year | 50.11 | 94.68 |
| Cash and cash equivalents at the end of the year | 128.15 | 50.11 |
| Net increase/(decrease) in cash and cash equivalents | 78.04 | (44.58) |
Summary of Cash Flow Statement for the years ending on March 31, 2023, and March 31, 2022, for Dalmia Bharat Refractories:
A. Cash flow from operating activities:
– In 2023, the company had a profit before tax from ordinary activities before exceptional items of -10.41 crore from continuing operations and -25.87 crore from discontinuing operations.
– Exceptional items amounting to 1,759.87 crore were recorded in 2023, resulting in a profit before taxation of 1,723.59 crore.
– Adjustments were made for depreciation and amortization expenses, provision no longer required written back, bad debts, gain on slump sale, impairment of intangible assets, provisions for doubtful debts and warranty, finance cost, interest income, dividend income, rates and taxes, gain on investments, and profit/loss on the sale of property, plant, and equipment.
– After these adjustments, the operating profit before working capital changes was 131.45 crore in 2023 and 94.90 crore in 2022.
– Working capital adjustments included changes in inventories, trade receivables, loans, other financial assets, other assets, trade payables, other financial liabilities, provisions, and other liabilities.
– The net cash flow generated from operating activities was 140.44 crore in 2023 and 19.56 crore in 2022.
B. Cash flow from investing activities:
– The company made investments in property, plant, equipment, and intangible assets, resulting in cash outflows.
– There were proceeds from the sale of property, plant, and equipment, interest income, and dividend income.
– The company purchased current investments, but also received proceeds from the sale of current investments.
– Other activities included investments in subsidiaries, changes in bank balances, and proceeds from the slump sale of business.
– The net cash flow generated from investing activities was -128.96 crore in 2023 and -45.04 crore in 2022.
C. Cash flow from financing activities:
– There were no proceeds from the issue of equity shares in 2023, but there were receipts in the previous year.
– Other receipts were recorded in 2023.
– Dividends were paid to shareholders, and there were proceeds and repayments of borrowings.
– Repayments of lease liabilities and interest payments were also made.
– The net cash flow generated from financing activities was 66.57 crore in 2023 and -19.09 crore in 2022.
Overall, the company experienced a net increase in cash and cash equivalents of 78.04 crore in 2023 and a net decrease of 44.58 crore in 2022. The ending cash and cash equivalents were 128.15 crore in 2023 and 50.11 crore in 2022.
Funds Flow Statement of Dalmia Bharat Refractories (Rs. In Crores)
| Particulars | Mar-22 | Mar-21 |
| Sources of funds | ||
| Cash profit | 47.69 | 54.54 |
| Increase in equity | 44.13 | 0.07 |
| Increase in other net worth | 0 | 891.61 |
| Increase in loan funds | 10.57 | 57.61 |
| Decrease in gross block | 0 | 0 |
| Decrease in investments | 6.6 | 0 |
| Total Inflow | 108.99 | 1,003.83 |
| Application of funds | ||
| Decrease in net worth | 49.4 | 0 |
| Increase in gross block | 39.13 | 343.65 |
| Increase in investments | 0 | 321.98 |
| Increase in working capital | 20.14 | 268.33 |
| Dividend | 0.32 | 0 |
| Total Outflow | 108.99 | 1,003.83 |
Dalmia Bharat Refractories Key Financial Ratios (Standalone)
| Particulars | 31 March 2023 | 31 March 2022 |
| Current Ratio (in times) | 1.30 | 1.62 |
| Debt-Equity Ratio (in times) | – | 0.05 |
| Debt Service Coverage Ratio (in times) | 0.02 | 9.72 |
| Return on Equity Ratio (in %) | 85.34% | 0.32% |
| Inventory Turnover Ratio (in times) | 0.12 | 0.85 |
| Trade Receivables Turnover Ratio (in times) | 0.12 | 1.02 |
| Trade Payable Turnover Ratio (in times) | 0.30 | 2.30 |
| Net Capital Turnover Ratio (in times) | 0.46 | 3.68 |
| Net Profit Ratio (in %) | 1410% | 1.20% |
| Return on Capital Employed Ratio (in %) | -1.22% | 0.58% |
| Return on Investment Ratio (in %) | 35.02% | -5.13% |
Summary of Dalmia Bharat Refractories Key Financial Ratios:
- Current Ratio:
– The current ratio measures the company ‘s ability to cover its short-term liabilities with its short-term assets.
– The current ratio was 1.30 in 2023 and 1.62 in 2022, indicating a slight decrease in liquidity from the previous year.
- Debt-Equity Ratio:
– The debt-equity ratio compares the company ‘s total debt to its shareholders ‘ equity.
– The debt-equity ratio was not provided for 2023 but was 0.05 in 2022, indicating a relatively low level of debt compared to equity.
- Debt Service Coverage Ratio:
– The debt service coverage ratio evaluates the company ‘s ability to cover its debt obligations from its operating income.
– The debt service coverage ratio was 0.02 in 2023, indicating a weak ability to cover debt obligations, and a significant decrease from the ratio of 9.72 in 2022.
- Return on Equity Ratio:
– The return on equity ratio measures the company ‘s profitability relative to its shareholders ‘ equity.
– The return on equity ratio was 85.34% in 2023, indicating a significant increase in profitability compared to 0.32% in 2022.
- Inventory Turnover Ratio:
– The inventory turnover ratio assesses the efficiency of inventory management.
– The inventory turnover ratio was 0.12 in 2023, suggesting slower inventory turnover compared to 0.85 in 2022.
- Trade Receivables Turnover Ratio:
– The trade receivables turnover ratio measures the efficiency of collecting payments from customers.
– The trade receivables turnover ratio was 0.12 in 2023, indicating a slower collection of receivables compared to 1.02 in 2022.
- Trade Payable Turnover Ratio:
– The trade payable turnover ratio evaluates the efficiency of paying trade payables.
– The trade payable turnover ratio was 0.30 in 2023, suggesting a slower payment of trade payables compared to 2.30 in 2022.
- Net Capital Turnover Ratio:
– The net capital turnover ratio measures the efficiency of utilizing capital to generate revenue.
– The net capital turnover ratio was 0.46 in 2023, indicating a lower efficiency in generating revenue compared to 3.68 in 2022.
- Net Profit Ratio:
– The net profit ratio assesses the company ‘s profitability as a percentage of net profit to net sales.
– The net profit ratio was 1410% in 2023, indicating a significant increase in profitability compared to 1.20% in 2022.
- Return on Capital Employed Ratio:
– The return on capital employed ratio measures the company ‘s profitability relative to its capital employed.
– The return on capital employed ratio was -1.22% in 2023, indicating a negative profitability and a decrease from 0.58% in 2022.
- Return on Investment Ratio:
– The return on investment ratio assesses the company ‘s profitability relative to its investment.
– The return on investment ratio was 35.02% in 2023, indicating a positive profitability and an increase from -5.13% in 2022.
Overall, the financial ratios suggest mixed performance for Dalmia Bharat Refractories. While some ratios show improvements in profitability and efficiency, others indicate challenges in debt service coverage and slower turnover of inventory and receivables.
Dalmia Bharat Refractories Dividend History
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
| Dividend (final + interim) (In Rs.) | 1.50 | 0.07 | 1 | 1.50 | 1 |
Dalmia Bharat Refractories Limited Recent Performance
- Revenue from Operations of the company has increased by 15.09% from Rs. 300.41 lakhs in FY 2022 to Rs. 345.75 lakhs in FY 2023.
- EBITDA of the company increased by 3575% from Rs. 48.22 lakhs in FY 2022 to Rs. 1772.2 lakhs in FY 2023.
- Profit after Tax of the company increased significantly by 5620% from Rs. 22.84 lakhs in FY 2022 to Rs. 1306.59 lakhs in FY 2023. PAT margins increased from 7.58% in FY 2022 to 364.28% in FY 2023.
- The Current Ratio of the company as of 31st March 2023 was 1.34. The company does not have any liquidity issues.
- Total Debt on the company as of 31st March 2023 stood at Rs. 89.39 lakhs. and Debt to Equity ratio of the company as of 31st March 2023 was 2.02.
