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Winners - Deccan Cements
Cement

Winners - Deccan Cements

Deccan Cements (DCL) is located in the Nalgonda district of Telangana and has been engaged in the cement business over the last three decades. Over the past five years, it has improved its operating margins substantially; revenues grew by 71 per cent from Rs 338 crore in FY2011 to Rs 579 crore in FY2016, and net profit jumped from Rs 2 crore to Rs 45.50 crore during the same period. It has a cement capacity of 2.25 million tonne and installed clinker capacity of 1.8 million tonne.

DCL sells cement under the brand name Deccan Cement, and has a network of over 1,000 dealers across all southern states as well as in Maharashtra, Madhya Pradesh, Chhattisgarh and Odisha. The trade segment accounts for ~70-75 per cent of its total sales.

The company´s current regional sales mix includes Andhra Pradesh or Telangana (45 per cent), Tamil Nadu (15 per cent), Karnataka (15 per cent), Kerala (10 per cent), Maharashtra (12 per cent) and other states like Madhya Pradesh, Chhattisgarh and Odisha (3 per cent). DCL witnessed flattish volume growth during FY2011-2015, in line with weak industry demand. It expanded its distribution network in southern India to far-off markets, enabling the company to arrest its volume decline in FY2015, and driving its 22 per cent volume growth in FY2016. The company´s net sales grew by 32 per cent to Rs 579.07 crore in FY2016, as against Rs 438.61 crore in FY2015; the bottomline grew by 129.2 per cent to Rs 45.56 crore.

Deccan Cements (DCL) is located in the Nalgonda district of Telangana and has been engaged in the cement business over the last three decades. Over the past five years, it has improved its operating margins substantially; revenues grew by 71 per cent from Rs 338 crore in FY2011 to Rs 579 crore in FY2016, and net profit jumped from Rs 2 crore to Rs 45.50 crore during the same period. It has a cement capacity of 2.25 million tonne and installed clinker capacity of 1.8 million tonne. DCL sells cement under the brand name Deccan Cement, and has a network of over 1,000 dealers across all southern states as well as in Maharashtra, Madhya Pradesh, Chhattisgarh and Odisha. The trade segment accounts for ~70-75 per cent of its total sales. The company´s current regional sales mix includes Andhra Pradesh or Telangana (45 per cent), Tamil Nadu (15 per cent), Karnataka (15 per cent), Kerala (10 per cent), Maharashtra (12 per cent) and other states like Madhya Pradesh, Chhattisgarh and Odisha (3 per cent). DCL witnessed flattish volume growth during FY2011-2015, in line with weak industry demand. It expanded its distribution network in southern India to far-off markets, enabling the company to arrest its volume decline in FY2015, and driving its 22 per cent volume growth in FY2016. The company´s net sales grew by 32 per cent to Rs 579.07 crore in FY2016, as against Rs 438.61 crore in FY2015; the bottomline grew by 129.2 per cent to Rs 45.56 crore.

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