DCM Shriram Ltd. Announces Second Quarter Results

DCM Shriram Ltd registered a net revenue increase of 18 % with a net profit of 88% when the results of the second quarter was announced.
Chloro-vinyl revenue went up 47%, a result of expansion in Chemicals completed last year. The Sugar revenue up by 39% led by volumes, a result of higher capacity utilisation last season.
The expansion of projects at an investment of Rs. 700 crore completed last year in Q3. The company will be Rs 1200 crore in Chemicals and Sugar businesses over next two years.
Investments under implementation – Rs. 350 crore – to be completed between Jan ’18 to June ‘18.
Announcements made – Rs. 848 crore – to be completed in phases between Q3 FY 19 to Q3 FY 20.
The Board has declared an interim dividend of 200% (LY 110%), Rs. 78.19 crore.
The Net Revenues is at Rs 1,605 crores vs Rs 1,366 crores over same period last year: The volume of chemicals were up 24% led by capacity from the expansion at Bharuch, commissioned in phases during last year. Prices have improved. The expanded capacity operating at 90%.
Sugar – Volumes were up 34% led by higher production in the last season. Shriram Farm Solutions and Hariyali (Fuel sales) witnessed decline in revenue.
PBDIT stood at Rs 306 crores vs Rs.132 crore over same period last year. Higher volumes and better margins of Chemicals led by higher prices.
PAT up by 88% YoY to Rs 172 crores. EPS for the quarter at Rs 10.6 up from Rs 5.6 in Q2 FY’17. Gross Debt as on Sep 30, 2017 stood at Rs. 673 crores vs. Rs 737 crore as on Sep 30, 2016. Cash and Cash equivalents stood at Rs.710 crore vs Rs 28 crore for the same period.
Projects underway at investment of Rs 350 crore – Sugar (Distillery) to be completed by Jan’18 and Chemicals (Kota capacity expansion and Aluminum Chloride) to be completed by Q2 FY’19.
The Board has approved following projects at a total investment of Rs 848 crore. Expansion of Sugar Capacity (5000 TCD) incl Distillery (100 KLD) and Co-gen (34 MW) at an investment of Rs. 500 crs. Sugar and Co-gen to be completed by Q3’ FY19 and Distillery by Q3’ FY20.
New 66 MW Power plant at Kota in replacement of old 50 MW plants at an investment of Rs. 240 cr will be competed by Q3’ FY’20
Capacity expansion of Chlor-Alkali at Kota (84 TPA) and Bharuch (146 TPA) at an investment of Rs. 98 crs. Bharuch Expansion to be completed by Q1’FY ‘20 and Kota by Q2‘ FY’20. The board has declared an interim dividend of 200% (LY: 110%) amounting to Rs 78.19 crores.
Commenting on the performance for the quarter, in a joint statement, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said: “We are happy to report a satisfactory performance for the quarter. All our business reported better operating performance. The investments undertaken over last few years for expansion of capacity and cost optimisation also contributed to better performance.
We are implementing projects involving investments of Rs. 350 crores for setting up 150 KLD Distillery, expansion of Chlor-alkali and setting up Aluminum chloride business. These will be commissioned by Q2 FY’19.
We are undertaking additional investments of Rs. 850 crore for capacity expansion as well as cost optimisation in our Chemicals and Sugar business including upgradation and expansion of captive Power plant at Kota. These projects will be commissioned during November’18 to September’19.
We are also taking steps to achieve sustained growth of Bioseed, Fenesta and Farm Solutions business over the medium term. With our strong Balance Sheet and healthy cash accruals, we are confident of delivering healthy growth over medium term.”


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