DCM Shriram Q4 PAT down by 53% with Revenue Down 3% YoY | Business Upturn

DCM Shriram Q4 PAT down by 53% with Revenue Down 3% YoY

DCM Shriram, a mid-cap firm, had a market cap of Rs.13,589.14 crore during today’s closing session.

DCM Shriram, a mid-cap firm, has a market cap of Rs.13,589.14 crore during today’s closing session. Agri-rural, chlor-vinyl, and value-added enterprises are the main industries covered by DCM Shriram’s business portfolio.

The Board of Directors “recommended final dividend of 180% i.e. Rs.3.60 per Equity Share of face value of Rs.2/- each for the financial year ended 31.3.2023 and therefore, if the same is declared by shareholders at the upcoming AGM, the total dividend for the Financial Year 2022-23 aggregates to 700% i.e. Rs.14/- per Equity Share of Face Value of Rs. 2/- Each (including interim dividends @ 230% i.e. Rs.4.60 per equity share of Rs. 2/- and @ 290% i.e. Rs.5.80/- per equity share of Rs. 2/- each declared in the October, 2022 and January, 2023 respectively).This dividend shall be credited or distributed within 30 days of the date of the upcoming Annual General Meeting (AGM), if declared by the Shareholders at the AGM.”

The corporation has set July 25, 2023, as the date for its 34th Annual General Meeting.

In Q4FY23, the company reported revenue from operations of ₹2,720 crore, a decrease of 3% YoY from Q4FY22’s ₹2,796 crore. The company reported that its net profit fell by 53% YoY to 187 crore during the quarter under review from 401 crore during the same quarter last year. In Q4FY23, the company’s PBIT was 301 crore, a 50% YoY decrease from Q4FY22’s PBIT of 602 crore.

The chairman and senior managing director of the company, Mr. Ajay Shriram, and the vice chairman and managing director, Mr. Vikram Shriram, commented on the performance for the quarter and the period ending in March 2023, “The world economy is still recovering from the unprecedented disruptions in the last three years. It will take time for world trade to adapt to the new normal. Growth is expected to slow down especially in the advanced economies. Recession concerns have gained prominence, while worries about stubbornly high inflation persist. India continues to be in a sweet spot and will see healthy growth and so will our businesses.”

“The chloro-vinyl business delivered reasonable returns although they have come off their all-time highs witnessed last year. Though the output prices are expected to remain under pressure for a couple of quarters, the margins should be reasonable considering the captive energy costs likely to reduce in the coming quarters in view of reduced imported coal prices and commissioning of an efficient 120MW power plant and 50MW green power project for Bharuch by second quarter. In the coming year, Chemical business will usher a new era of growth with all the Chemical projects being commissioned. These projects are slightly delayed by a quarter given the supply constraints,” stated Ajay Shriram.

“Sugar business continues to be stable though sugar prices have not yet increased to levels to compensate for the increase in sugarcane prices last year. India’s crush and sugar production is expected to be much lower than last year and should support higher sugar prices domestically & globally. Our Sugarcane crush as well as recovery this season has been better than previous season. 120 KLD distillery is operational on molasses feedstock, the grain attachment is ready and awaiting regulatory approval, which is expected in Q1FY’24,” he continued.

“Fenesta & Shriram Farm Solution businesses continue to grow at a good rate. Sustainability measures in the areas of green power, circular economy and resource conservation continue to be an integral part of all our businesses. Our balance sheet & cash flows are healthy and will weather economic uncertainties. We are actively looking for more avenues at growth,” Ajay Shriram stated.

DCM Shriram’s shares closed at ₹819.10 a share on the BSE, up 0.18% from the previous close of ₹817.60.