DCM Shriram Ltd. announces its Q1 FY ’17 financial results

DCM Shriram Ltd. announces its Q1 FY ’17 financial results Q1 F Y ‘ 17 Net Revenue at Rs. 1,442 crores (LY: Rs 1,789 cr) Q1 F Y ‘ 17 PBDIT up 29% YoY to Rs. 250 cr Q1 FY ‘ 17 Net Profit at Rs. 167 cr, up 34% YoY  Chloro-vinyl and Sugar business – major contributors to profit growth  Agri-Inputs businesses continue to be under stress due to adverse weather conditions and tight financial position of farmers  Rs. 725 crores capacity expansion plan in Chemicals and Sugar (Co-generation) business to be fully commissioned in Q3 FY 17  Board has approved another capacity expansion for Chlor-Alkali (including liquid & flakes) at Kota complex with an investment of Rs. 97.3 crores DCM Shriram Ltd. announced its Q1 FY17 financial results today. Commenting on the performance for the quarter, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. 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.”