Q2FY22 Quarterly Result Announced for DCM Shriram Ltd.
Highlights: PAT for Q2 FY22 at Rs. 159 crs, up 33% YoY Board Declared Interim dividend of 230%. Net Revenue* up 5% YoY at Rs 2,145 crs. Chemicals revenues up 37% led by both volumes and prices. Vinyl revenues up 94% YoY primarily led by higher prices. Sugar revenues down 29% YoY, primarily down due to lower sugar volumes PBDIT up 30% YoY at Rs 311 crs. Vinyl PBDIT at Rs 156 crs vs Rs 52 crs during same period last year. Chemicals PBDIT Rs 108 crs vs Rs 94 crs during Q2 FY21. Sugar Business PBDIT lower 42% YoY at Rs 33 crs Surplus cash net of debt at 30th September, 2021 is Rs. 679 crs vs net debt of Rs 242 crs at 30th September, 2020. Commenting on the performance for the quarter and period ending September 2021, 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 a good overall performance during the quarter. The businesses environment remains disruptive despite relative normalization of Covid-19 during the quarter, given the global supply chain constraints led by climate induced factors, geo-political reasons and Covid-19. Our Chloro-vinyl businesses have performed better given the improved demand as well as price scenario. However with global increase in energy prices as well as other key inputs, the cost pressures are high. There is significant uncertainty on inputs costs although we are having adequate supplies to ensure continuity of operations. We expect that higher product prices will support the increase in costs Our Sugar business is operating in a favorable operating environment which is good for the farmers as well as the industry. Although the SAP for Sugarcane has been revised upwards, we hope that product prices will support the increase in SAP. Higher international prices of Sugar augur well for the business. For Our Agri Input business of Shriram Farm Solutions and Bioseed this is a limited season. Our Investment projects of around Rs. 2,500 crs across businesses are under progress. 2nd wave of Covid -19 as well as extensive rains have impacted some of the project milestones, however we expect to commission the projects as per plan. Given the health of our balance sheet and operating cash-flow, we will look forward to more growth avenues and enhance our scale, integration, value addition and cost positioning.” Result PDF19-10-2021