The Hindu Business Line : DSCL posts 56% increase in PAT — To invest Rs 68.5 cr in sugar plants

DCM Shriram Consolidated Ltd (DSCL) has reported a profit after tax of Rs 32.27 crore for the third quarter ended December 2004, an increase of around 56 per cent compared to the corresponding quarter of the previous fiscal.

The turnover during the quarter increased by 78.5 per cent to Rs 569.4 crore while operating profits stood at Rs 68.67 crore, according to a company release.

The results for the current quarter and nine months are inclusive of the sugar business that was merged with DSCL in March 2004 and as such the growth rates are high, the release added.

Net revenues during the first nine months went up by 49.3 per cent to Rs 1,339 crore. Operating profits for the period increased by 29 per cent to Rs 154.28 crore while profit after tax improved by 39 per cent to Rs 64.99 crore. The earnings per share for the nine-month period stood at Rs 38.80.

The company board, which met here on Tuesday, also approved the expansion plans in the two sugar plants with an additional investment of Rs 68.5 crore. The total capacity will be increased by 3,000 tonnes crushed per day (tcd) and would be completed by October this year.

Commenting on the performance, the Chairman and Senior Managing Director, Mr Ajay Shriram, and Vice-Chairman and Managing Director, Mr Vikram Shriram, said that the company is operating with a bi-dimensional focus.

"We are operating in energy-intensive businesses such as chemicals and plastics where our objective is to efficiently produce multiple downstream products in a manner that we maximise our profit contribution per unit of power.

"Secondly, we are mapping opportunities in the entire agricultural chain including input, output and services, where we see immense potential in the future," they said.

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