DCM Shriram Ltd Announced First Quarter Results of 2017 Fiscal

NEW DELHI:
DCM Shriram Ltd. announced its Q1 FY17 financial results with Net Revenues lower at Rs 1,442 crores vs. Rs 1,789 crores last year due to suspension of trading in DAP/MOP fertilizers. Lower volumes of hybrid seeds (primarily BT cotton) also contributed to decline in revenue
PBIT stood higher at Rs 226 crores, up 34% YoY (LY: Rs 168 crores). Chloro-Vinyl businesses’ earnings improved to Rs 121 crores, up 29% from Rs 94 crores in Q1 FY 16. This increase in earnings was on account of lower costs of key input materials, better efficiencies and higher realizations prices and lower cost of production, a result of better recoveries in Sugar Season 2015-16.
Sugar Business’ earnings improved to Rs. 32 crore from –ve Rs. 16 crore LY led by better. Finance costs at Rs 20 crores was down by 27% YoY from Rs 27 crores in Q1 FY 16 led by lower borrowing costs.
PAT up by 34% YoY to Rs 167 crores. EPS for the quarter at Rs 10.3 up from Rs 7.7 in Q1 FY 16. Net Debt as on June 30, 2016 stood at Rs. 1,071 crores vs. Rs 690 crores as on June 30, 2015. Increase in net debt was on account of the ongoing expansion projects.
As part of the expansion, the Chemicals project to increase the capacity from 780 TPD to 1285 TPD was partially commissioned in June at Bharuch. Full commissioning including power expansion expected to be completed up by Oct 2016.
Sugar Co-gen expansion is progressing as per plan with completion expected by Q3 2017. Board has approved expansion in Chemicals business at Kota complex to increase Chlor-Alkali capacity (including liquid & flakes) at an estimated investment of Rs 97.3 crores. Completion expected by Q3 FY18.
Commenting on the performance for the quarter, in a joint statement, Ajay Shriram, Chairman and Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said: “The company delivered a healthy performance during Q1. All businesses, except Farm Solutions and Bioseed, recorded better performance.
Chloro Vinyl businesses’ continue to deliver improved performance as a consequence of our efforts to strengthen cost competitiveness and grow volumes. Lower input prices also contributed to better performance. Our position will further improve post completion of ongoing capacity expansion and efficiency improvement projects in the Chlor-Alkali business. We have taken up a project to further enhance Chlor-Alkali capacity (liquid & flakes) at Kota at an investment of Rs 97 crores. This would be operational in Q3 ‘ 18 and will provide further growth to this business.
Sugar business’ earnings recovered vis-à-vis last year driven by improvement in the margins. We are investing on value addition to the by-products and to increase cane availability to further strengthen this business.
Farm Solutions and Bioseed businesses were adversely impacted due to delay in onset of monsoons, weak farmer economics and tight funds availability. The Company is confident of delivering healthy growth in the medium term led by expanded capacity and improved cost structure in the Chemicals business, higher returns from value addition to Sugar by- products and targeted growth in the Bioseed and Farm Solutions businesses. Our healthy cash flows and comfortable gearing enable us to undertake growth investments going forward.”