Latest news with #DalmiaBharat
Time of India
4 days ago
- Business
- Time of India
Dalmia Bharat gets SC relief in ₹500 crore KKR investment tax dispute
The Supreme Court has put a hold on income tax reassessment proceedings against Dalmia Bharat and its subsidiaries. This involves a Rs 500 crore investment by KKR Mauritius Cement Investments in Dalmia Cement back in 2010-2011. The court is seeking a response from the income tax department regarding the reassessment. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Supreme Court on Friday stayed the income tax department 's decision to initiate reassessment proceedings against Dalmia Bharat and its two subsidiaries - Dalmia Cement (Bharat) and Dalmia Power - for assessment year issue relates to an investment of Rs 500 crore made by KKR Mauritius Cement Investments KKR ) in Dalmia Cement (Bharat) in financial year 2010-2011 (Assessment Year 2011-2012). KKR was allotted 37.92 million equity shares, accounting for 14.99% of the stake in the company. The shares were bought back by Dalmia Bharat (DBL) in 2016 for Rs 1218 crore.A Bench led by Chief Justice BR Gavai sought response from the income tax department on three separate appeals by Dalmia group firms challenging the Madras High Court's order upholding the income tax department's reassessment and its two subsidiaries argued that the transaction of the alleged purchase of shares by DBL from KKR is not even applicable in the relevant AY - 2011-2012 as there wasn't even a buyback. It was a simple sale transaction from KKR to DBL, senior counsel D Seshadri Naidu, appearing for the companies, submitted that even the jurisdictional requirement of Section 147 of the Income Tax Act, as to 'where income chargeable to tax has escaped assessment' is not satisfied in the Reasons for Reopening (Explanation 2 to section 147 of the IT Act).The Reasons for Reopening do not even justify reopening of the assessment after a period beyond four years, the appeals filed through counsel Mahesh Agarwal from the fact that all investments were through banking channels and RBI approvals, the investment itself was disclosed in the audited accounts with the Ministry of Corporate Affairs (compliances under Companies Act, 1956) and Reserve Bank of India for compliances under Foreign Exchange Management Act, 1999, the companies said.'Details of KKR's investments in petitioner, therefore, have been disclosed to various regulatory authorities, including the tax authorities in the relevant AY 2011-2012,' the appeals stated, adding that the Reasons for Reassessment are 'wholly vague and ambiguous.'Dalmia told the SC that no income is alleged to have escaped assessment on account of the investment KKR. On the contrary, the department had alleged that the shareholding of KKR in DCBL has been bought back by DBL from KKR at a value more than Rs 1200 crore and the whole transaction needs to be investigated properly to find out if any black money has been used and whether transaction had escaped any income tax Assessing Officer (AO) had proposed to reopen the tax assessments of the three companies as this amounted to round-tripping, the counsel the tax reassessment proposal, the companies had moved a single-judge bench of the HC, which had ruled against reopening on the grounds that Dalmia Cement (Bharat) had disclosed the investment made by KKR in their tax returns. However, the division bench ruled to the contrary relying on the AO's materials that prima facie indicated that KKR was a shell company and there was also round tripping.
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Business Standard
23-05-2025
- Business
- Business Standard
Dalmia Bharat under I-T lens post HC nod on reopening of assessment
Madras HC rules in favour of tax department on reopening Dalmia Cement's case involving KKR's ₹500 crore investment, triggering fresh scrutiny over round-tripping Dev Chatterjee Shine Jacob Chennai/Mumbai Listen to This Article The Dalmia Bharat group is facing an income tax (I-T) scrutiny following a recent ruling by the Madras High Court, which upheld the reopening of I-T assessment proceedings against Dalmia Cement (Bharat) Ltd (DCBL) in a transaction involving US-based private equity giant KKR & Co. The tax authorities have alleged that an investment of ₹500 crore made by KKR Mauritius Cement Investment Ltd, a KKR & Co investment vehicle, in DCBL in 2010-11 for a 14.99 per cent stake, prima facie suggests round-tripping of unaccounted money by the company. An email sent to the Dalmia Bharat group on Tuesday did
Reuters
22-05-2025
- Business
- Reuters
Ramco Cements posts slump in profit, forecasts higher south India prices
May 22 (Reuters) - Ramco Cements ( opens new tab said on Thursday it sees improving cement prices in its key south India market, after reporting a fourth-quarter profit slump hurt by lackluster prices and lower volumes in a seasonally strong period. Adjusted net profit from the cement business sank over 76% to 384.3 million rupees ($4.5 million) in the quarter ended March 31. The company registered a one-time gain of 108.3 million rupees, tied to sale of surplus lands and investments. "In southern region, during the first two months of FY26, the average cement prices have improved... the company believes the prices would sustain amid rising pace of cement capacity additions (in the region)," it said. South India, which gives Ramco three-fourths of its total volumes, has lagged other regions of the country in terms of pricing growth for many quarters but is now climbing out of that lull, Jefferies said earlier this month. That is set to benefit companies like Ramco and Dalmia Bharat ( opens new tab - which are heavily-focussed in the south - and also other big players like UltraTech ( opens new tab and Ambuja ( opens new tab who have struck back-to-back capacity expansion deals in the market. Ramco said its sales volumes fell 4% in the reported quarter - usually seasonally strong as favorable weather spurs construction activities and drives cement demand. Meanwhile, average all-India cement prices were also 2% lower on-year for the reported quarter, Ambit Capital's data showed. That pushed revenues down by over 10%, much bigger than the 0.4% fall estimated by analysts on an average. Ramco also said that Tamil Nadu state's recent levy on mining limestone - from which cement is made - would increase the per ton cost of production by 200 rupees. The levy "is the highest in the country... the cement manufacturers in Tamil Nadu, through industry association, have represented to the government seeking relief, which is under consideration," the company said. ($1 = 85.9750 Indian rupees)
Economic Times
29-04-2025
- Business
- Economic Times
Buy Dalmia Bharat, target price Rs 2,260: Axis Securities
Dalmia Bharat's key products/revenue segments include Income From Management Services for the year ending 31-Mar-2023. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 4184.00 crore, up 30.02% from last quarter Total Income of Rs 3,218 crore and down -5.49% from last year same quarter Total Income of Rs 4,427.00 crore. The company has reported net profit after tax of Rs 439.00 crore in the latest quarter. The company's top management includes Hari Dalmia, Dalmia, Yadu Dalmia, Subrao Rajan, Heinz Hugentobler, Gulati, Mookerjee, Khaitan. The company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 19 crore shares outstanding. Live Events Investment Rationale In Q4FY25, lower costs drove improved margins both YoY and QoQ. Cement prices in the South rose by Rs 30-35 per bag in Apr'25, further supporting margins going forward. However, the region faces high competitive intensity, making price sustainability a key factor to watch. The cement sector is expected to grow at 1.2 times the pace of GDP, with India's GDP projected to rise 6.5%-7% over the next few years. Axis Securities remains positive on the company's growth prospects and expect it to deliver a Volume/Revenue/EBITDA/PAT CAGR of 8% /6% /11%/ 17% over FY24-FY27E. Capacity expansion, market share gains, and operational efficiencies will drive this growth. Additionally, with the growing pace of consolidation and capacity expansion by top players, their overall market share is set to increase further to 65%-70% by FY27-28. This trend will positively influence cement pricing, economies of scale, and supply chain efficiency. The company, being among the top 5 players in the country, is well-positioned to benefit from this consolidation in the medium to long term.. Pricing remains a key factor to monitor closely. The stock is currently trading at 13x and 11x FY26E/FY27E EV/EBITDA and EV/tonne of $92 and $95. The valuation remains attractive. The brokerage maintains its BUY rating on the stock with a target price of Rs 2,260/share, implying an upside of 14% from the CMP. Promoter/FII Holdings Promoters held 55.84 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.29 per cent, DIIs 16.36 per cent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Axis Securities has maintained its Buy call on Dalmia Bharat with a target price of Rs 2,260. The current market price of Dalmia Bharat is Rs 1974.55. Dalmia Bharat, incorporated in 2013, is a Mid Cap company with a market cap of Rs 37002.85 crore, operating in the cement Bharat's key products/revenue segments include Income From Management Services for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 4184.00 crore, up 30.02% from last quarter Total Income of Rs 3,218 crore and down -5.49% from last year same quarter Total Income of Rs 4,427.00 crore. The company has reported net profit after tax of Rs 439.00 crore in the latest company's top management includes Hari Dalmia, Dalmia, Yadu Dalmia, Subrao Rajan, Heinz Hugentobler, Gulati, Mookerjee, Khaitan. The company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 19 crore shares Q4FY25, lower costs drove improved margins both YoY and QoQ. Cement prices in the South rose by Rs 30-35 per bag in Apr'25, further supporting margins going forward. However, the region faces high competitive intensity, making price sustainability a key factor to watch. The cement sector is expected to grow at 1.2 times the pace of GDP, with India's GDP projected to rise 6.5%-7% over the next few years. Axis Securities remains positive on the company's growth prospects and expect it to deliver a Volume/Revenue/EBITDA/PAT CAGR of 8% /6% /11%/ 17% over FY24-FY27E. Capacity expansion, market share gains, and operational efficiencies will drive this growth. Additionally, with the growing pace of consolidation and capacity expansion by top players, their overall market share is set to increase further to 65%-70% by trend will positively influence cement pricing, economies of scale, and supply chain efficiency. The company, being among the top 5 players in the country, is well-positioned to benefit from this consolidation in the medium to long term.. Pricing remains a key factor to monitor closely. The stock is currently trading at 13x and 11x FY26E/FY27E EV/EBITDA and EV/tonne of $92 and $95. The valuation remains attractive. The brokerage maintains its BUY rating on the stock with a target price of Rs 2,260/share, implying an upside of 14% from the held 55.84 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.29 per cent, DIIs 16.36 per cent. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Time of India
29-04-2025
- Business
- Time of India
Buy Dalmia Bharat, target price Rs 2,260: Axis Securities
Axis Securities has maintained its Buy call on Dalmia Bharat with a target price of Rs 2,260. The current market price of Dalmia Bharat is Rs 1974.55. Dalmia Bharat, incorporated in 2013, is a Mid Cap company with a market cap of Rs 37002.85 crore, operating in the cement sector. Dalmia Bharat's key products/revenue segments include Income From Management Services for the year ending 31-Mar-2023. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Google Brain Co-Founder Breaks His Silence: Read These 5 Books And Turn Your Life Around Blinkist: Andrew Ng's Reading List Undo Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 4184.00 crore, up 30.02% from last quarter Total Income of Rs 3,218 crore and down -5.49% from last year same quarter Total Income of Rs 4,427.00 crore. The company has reported net profit after tax of Rs 439.00 crore in the latest quarter. The company's top management includes Hari Dalmia, Dalmia, Yadu Dalmia, Subrao Rajan, Heinz Hugentobler, Gulati, Mookerjee, Khaitan. The company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 19 crore shares outstanding. Live Events Investment Rationale In Q4FY25, lower costs drove improved margins both YoY and QoQ. Cement prices in the South rose by Rs 30-35 per bag in Apr'25, further supporting margins going forward. However, the region faces high competitive intensity, making price sustainability a key factor to watch. The cement sector is expected to grow at 1.2 times the pace of GDP, with India's GDP projected to rise 6.5%-7% over the next few years. Axis Securities remains positive on the company's growth prospects and expect it to deliver a Volume/Revenue/EBITDA/PAT CAGR of 8% /6% /11%/ 17% over FY24-FY27E. Capacity expansion, market share gains, and operational efficiencies will drive this growth. Additionally, with the growing pace of consolidation and capacity expansion by top players, their overall market share is set to increase further to 65%-70% by FY27-28. This trend will positively influence cement pricing, economies of scale, and supply chain efficiency. The company, being among the top 5 players in the country, is well-positioned to benefit from this consolidation in the medium to long term.. Pricing remains a key factor to monitor closely. The stock is currently trading at 13x and 11x FY26E/FY27E EV/EBITDA and EV/tonne of $92 and $95. The valuation remains attractive. The brokerage maintains its BUY rating on the stock with a target price of Rs 2,260/share, implying an upside of 14% from the CMP. Promoter/FII Holdings Promoters held 55.84 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.29 per cent, DIIs 16.36 per cent.
