Riding on the strong show in its chloro-vinyl business, DCM Shriram, a diversified conglomerate, on Tuesday reported a 128 per cent increase in net profit for the first quarter ended June 30, 2021 at ₹158 crore (against net profit of ₹69 crore in Q1 last fiscal).

Net revenue grew 2 per cent to ₹1,957 crore (₹1,912 crore).

“The performance during the quarter was robust despite the challenges of second wave of Covid-19. Our businesses have shown resilience to the disruptions caused by the pandemic and have continued to operate at normal levels. The overall economic activity in the country was significantly better than the same period last year, enabling better performance,” Ajay Shriram, Chairman and Senior Managing Director, said in a statement.

While Q1 revenue from its chloro-vinyl business grew by nearly 90 per cent to ₹598 crore y-o-y, that from sugar sector fell by nearly 36 per cent to ₹563.5 crore due to lower volumes of sugar and power production.

DCM’s fertiliser revenueswere up nearly 8 per cent to ₹220 crore while that of the seeds sector fell 6 per cent to ₹188.5 crore.

As construction was not affected during the second wave unlike in the first wave of the pandemic, the firm’s Fenesta business reported a 168 per cent increase in revenue to ₹108.5 crore in Q1.

DCM Shriram’s Board of Directors approved a few new investments in addition to some ongoing projects. The firm will set up a 120 kl per day ethanol distillery using multiple feedstock at Ajbapur Sugar Mill in Uttar Pradesh at an investment of ₹145 crore and another ₹75 crore will be spent on technology upgradation at its chemical plants in Gujarat and Rajasthan. This is in addition to the ₹2,100-crore expansion/modernisation project in its Bharuch chemical complex, the statement said.

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