DCM Shriram has reported a net profit of Rs 123 crore for the quarter ended June 30, 2015, a 30.5 per cent decline from Rs 177 crore reported during the corresponding period of the previous fiscal.
The company's total income rose 6 per cent to Rs 1,806 crore in the first quarter of 2015-16 fiscal from Rs 1,704.42 crore a year earlier, mainly on account of higher volume of bulk fertilisers.
High outstanding fertiliser subsidy payment of Rs 555 crore and a sugar inventory of Rs 263 crore led to higher working capital requirement.
"The company has performed satisfactorily, given a challenging business environment, a result of our diversified and integrated business portfolio and comfortable debt levels," said a joint statement by Ajay Shriram, Chairman and Senior Managing Director, and Vikram Shriram, Vice-Chairman and Managing Director, DCM Shriram.
"The unfavourable monsoon pattern and financial stress in agriculture sector have adversely affected demand for agri-inputs leading to lower revenues of bioseed and value-added products," it added.
DCM Shriram stock was trading 6.4 per cent lower at Rs.117 on the BSE at around 11 am on Monday.
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