Companies

DCM Shriram profit up 36% at Rs 63 cr

PTI New Delhi | Updated on January 22, 2018

DCM Shriram today reported a 36 per cent increase in consolidated net profit at Rs 62.96 crore for the second quarter ended September 30, on lower expenses.

The company’s net profit stood at Rs 46.30 crore in the year—ago period, DCM Shriram said in a statement.

The Delhi—based firm is engaged in chemical, sugar, fertiliser and seed businesses among others.

Revenue also rose marginally to Rs 1,439.38 crore in the current quarter from Rs 1,428.46 crore in the corresponding period of the previous year.

During the period under review, the company’s expenses declined to Rs 1,353.34 crore (Rs 1,373,95 crore) and finance cost fell to Rs 26.52 crore (Rs 29.82 crore).

The board declared an interim dividend of 60 per cent. It also approved a capital expenditure programme of Rs 73 crore in chlor—alkali business to save cost.

Commenting on the development, company’s Chairman & Senior Managing Director Ajay Shriram and Vice Chairman & Managing Director Vikram Shriram said: “The performance of the company is satisfactory given the challenges in sugar business, weak agriculture dynamics impacting the agri—input businesses and lower product prices in chloro—vinyl businesses.”

Additional levies by central and state governments on coal based power have worsened the situation further, they added.

“Sugar Industry requires comprehensive policy reform urgently to restore its viability. Some recent measures have helped partially, but prices continue to be significantly below costs,” Shriram said.

DCM Shriram said that the company continues to focus on strengthening cost competitiveness in all businesses and expanding scale wherever viable.

Published on November 02, 2015

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