Drop in sugar and molasses price and dearer cane prices brought down profit margins of DCM Shriram by nearly two-thirds year-on-year in the fourth quarter, a company statement said on Tuesday.

Net revenue was ₹1,566 crore, which was 3 per cent lower than ₹1,616 crore in the fourth quarter of fiscal 2017 and profit after tax slumped by 68 per cent to ₹51 crore compared to the corresponding period last year.

For the whole year, the net revenue stood at ₹6,900 crore which was 19 per cent higher than ₹5,788 crore in fiscal 2017 and profit after tax rose by 21 per cent to ₹670 crore.

DCM Shriram board recommended a final dividend of 40 per cent to its shareholders, the release said.

DCM Shriram said it took an inventory write down of ₹185 crore as “selling prices were substantially below the costs”, it said.

While the revenue from its chemicals business in Q4 went up by 89 per cent, the revenue from sugar business was down by 29 per cent year-on-year, thanks to drop in volume by 14 per cent and 13 per cent slump in sugar price, the statement said

Related Topics