The Hindu Business Line : DCM Shriram Q1 net up at Rs 38.58 cr

DCM Shriram Consolidated Ltd (DSCL) has reported a profit after tax of Rs 38.58 crore for the first quarter marking an increase of 162 per cent compared to Rs 14.70 crore during the corresponding quarter last fiscal.

The company's revenues increased by 80 per cent to Rs 584 crore (Rs 323.65 crore in the same period last year).

The company's revenue from manufacturing activities increased by 53 per cent, while that from trading improved by 47 per cent.

Operating profit during the quarter increased by 95 per cent to Rs 81.73 crore, mainly on account of increased volumes consequent to completion of expansion projects and better price realisations in chemicals and sugar businesses of the company, according to a company release. The margins in the PVC businesses were lower during the quarter because of lower prices.

The board also approved a revised plan to expand its sugar capacity from 14,000 tonnes crushing per day (TCD) to 33,000 TCD, which would be commissioned by October 2006.

Simultaneously, the power co-generation capacity at its sugar facility is also proposed to be enhanced from 24 MW to 81 MW, out of which 38 MW would be sold to the grid, the release said.

Commenting on the performance for the quarter, in a joint statement, Mr Ajay Shriram, Chairman & Senior Managing Director, and Mr Vikram Shriram, Vice-Chairman and Managing Director, said that, "We have had an encouraging beginning in the new financial year, where we have been able to achieve better earnings despite rising costs due to increase in volumes and better margins in the chemicals and sugar businesses."

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