Earnings Summary: DCM Shriram Ltd. (NSE: DCMSHRIRAM)| PAT up 167% qoq in Q3FY23

DCM Shriram Limited (NSE: DCMSHRIRAM) is a conglomerate company based in India. It operates in various sectors such as sugar, chemicals, rayon, and agriculture. It is known for its sugar and chemical manufacturing operations, as well as its rayon and textiles business. DCM Shriram also has a significant presence in the agri-business sector, with operations in the areas of seeds, fertilizers, and crop protection.

The company had revenue of 3,317.89 Cr in Dec-22, which decreased to 2,809.65 Cr in Sep-22. However, the revenue increased again to 2,908.02 Cr in Jun-22, and reached a peak of 3,317.89 Cr in Dec-22. The total revenue for FY 21-22 was 9,676.55 Cr. The company had other income of 33.40 Cr in Dec-22 and increased to 88.06 Cr in Sep-22. The total other income for FY 21-22 was 93.89 Cr. The company’s total income was 3,351.29 Cr in Dec-22 and it decreased to 2,764.46 Cr in Dec-21. The total income for FY 21-22 was 9,770.44 Cr. The company’s expenditure increased from 2,789.78 Cr in Dec-22 to 7,996.35 Cr in FY 21-22. The Interest increased from 12.64 Cr in Dec-22 to 85.07 Cr in FY 21-22.The company’s operating profit margin (OPM) was 17.30% in Dec-22, which decreased to 12.58% in Sep-22, but then increased to 23.20% in Mar-22. The OPM for FY 21-22 was 19.21%.The company’s net profit was 335.42 Cr in Dec-22 and it decreased to 346.56 Cr in Dec-21. The net profit margin (NPM) was 10.11% in Dec-22, which decreased to 12.65% in Dec-21. The NPM for FY 21-22 was 10.84%.Earning per share (EPS) was 21.51 in Dec-22 and increased to 67.25 in FY 21-22

Overall, DCM Shriram Limited has shown growth in both its top and bottom lines, with improvements in EBIT, PAT, and EPS. The company also has a consistent EBIT and Net Profit Margin.

Commenting on the performance for the quarter and period ending December 2022, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said “We are glad to report another consistent quarter of robust performance with positive / stable outlook across all the businesses. The operating environment is very challenging globally. Russia-Ukraine conflict does not seem to be concluding, Covid fears are back, there are risks of recession, the inflation seems to have peaked however the monetary tightening is expected to continue albeit at a lower pace. India is better placed in terms of the growth story and so are each of our diversified businesses.”

“The Chloro-vinyl business is delivering reasonable returns although they have come off their all time highs. In Chlor-alkali the product prices are off-their historic peak, the input costs continue to be elevated driven by energy prices. The margins for the Vinyl business were under pressure during the quarter, owing to reduced global demand and increased supply, the scenario is now improving. Captive energy costs continue to be high will improve in the coming quarters with commissioning of efficient 120MW power plant and 50MW green power project for Bharuch. Expansion projects in Chemical Business are on track although the timelines are stiff given the supply side constraints,” they further added.

“Sugar business continues to operate in a favorable policy environment. However, to meet the Ethanol blending program more policy measures are required, especially for the state of UP. Our mills have started crushing in this quarter and is witnessing a better crop. Capacity enhancements in sugar & distillery are commissioned except grain attachment which is likely to be operational in this quarter. Fenesta & Shriram Farm Solution businesses continued to follow the growth trajectory and have delivered promising results. Our Company is making conscious efforts towards sustainability through adding green power, circular economy and resource conservation. Some such measures are already underway and more are being planned Our balance sheet & cash flows continue to be healthy and we are actively looking for more avenues for growth,” they said.