Q3FY23 Quarterly Result Announced for DCM Shriram Ltd.
Specialty chemicals manufacturer DCM Shriram announced Q3FY23results: Q3FY23: Net revenue Q3FY23 up 19% YoY at Rs 3,236 crore Sugar business up 29% at Rs 728 crore led by higher domestic and export volumes Shriram Farm Solutions up 15% at Rs 512 crore led by better prices and product mix Fenesta up 31% at Rs 179 crore led by volumes growth in both project & retail Vinyl down 33% at Rs 204 crore primarily due to lower output prices PBDIT Q3FY23 down 4% YoY at Rs 588 crore Chemicals down 24% at Rs 218 crore led by higher input costs Vinyl at Rs 19 crore vs Rs 125 crore led by lower product prices Sugar business down 23% at Rs 102 crore, since the increase in SAP last year not fully compensated in sugar and ethanol prices Shriram Farm Solution up 47% led by better margins Fenesta up 87% led by better volumes and margins Fertiliser had a positive impact of Rs 49 crore relating to earlier periods Projects: In sugar the projects worth of Rs 450 crore have commenced operations. In chemicals the projects worth Rs 2,800 crore are on track ROCE at 34% vs 29% LY 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. 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. Result PDF20-01-2023