DCM Shriram Q2FY17 profit rises 48%

DCM Shriram on Thursday (27^th October 2016) registered 48 per cent increase in the net profit at Rs 92 crores for the quarter ended 30^th September 2016 on improved sugar prices accompanied by better performance of bioseeds business.

The net profit of the company stood at Rs 62 crores in the year-ago period, the company declared in a statement. Total revenue, however, fell by 2.6 per cent to Rs 1,446 crores in the second quarter of this fiscal from Rs 1,484 crores in the corresponding period of the last year.

The company attributed the second quarter earnings growth to improvement in sugar prices, better performance of bioseed business, and reduction in financial costs.

The Company is engaged in sugar, fertiliser, seeds, chloro vinyl as well as cement businesses among others.

While commenting on the performance of the Company Chairman and Senior Managing Director Ajay Shriram and Vice Chairman and Managing Director Vikram Shriram said that the company delivered encouraging performance in the second quarter. The steps taken over the last few years to improve cost structures and expand volumes in the key businesses have contributed to the sustained improvement in performance.

The capacity expansion as well as technology up-gradation project at Bharuch, commissioned in phases since the month June 2016, is expected to be fully commissioned in the month November 2016.

The Sugar co-gen capacity expansion or efficiency improvement project will also be commissioned in November 2016. Both these projects will contribute to the improved performance going forward.

They also added that the Company has also taken up the following projects to be completed by the fourth quarter of FY18. Chlor Alkali capacity expansion/ upgradation at Kota (Investment- Rs 97.3 crores); 150 kilo litres per day distillery at DSCL Sugar - Hariawan (Investment- Rs 185 crores); expansion of windows fabrication capacity at Fenesta (Investment - Rs 18.5 crores).

"These projects will improve our competitiveness and provide sustained growth over the next few years," they further added.At the moment DCM Shriram share price is trading at Rs 256.30 apiece on NSE.