Companies

DCM Shriram’s Q2 revenue increases 17% at ₹2,047 crore

New Delhi | Updated on October 20, 2020

Diversified conglomerate DCM Shriram has reported a net revenue of ₹2,047 crore in the second quarter of the current financial year, up 17 per cent from the corresponding quarter last fiscal, the company said in a statement on Tuesday. However, the company’s net profit remained unchanged at ₹119 crore.

Among various verticals, the company’s sugar business did exceedingly well with the segment reporting a revenue of ₹830 crore, which is 89 per cent higher than that in Q1FY20.

Plastics segment

Similarly, there was 25 per cent increase in revenues from plastic business which netted ₹171 crore in Q2. However, chemicals, fertiliser and seed businesses recorded a dip in revenues as compared to corresponding quarter last year.

“The operating as well as financial performance of the company has improved significantly over the previous quarter which was impacted by the Covid-19 pandemic. Although the operating challenges have reduced, the uncertainty of economic environment continues,” said the company.

Increased scale and opening of a new 200 kilolitre (kl) per day ethanol plant has helped DCM Shriram to improve its performance in the sugar sector. Higher earnings were also due to increase in sugar exports, it said.

DCM Shriram’s chloro-vinyl business witnessed a spurt of volume since May this year after the lockdown was lifted. The firm has also been able to save on costs by replacing older plants with a new power plant at Kota which became operational in the last quarter of the previous fiscal.

The work also commenced on a 120 MW coal-based power plant at Bharuch in Gujarat, the statement said.

Published on October 20, 2020

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