DCM Shriram Ltd. News, Corporate filings and Earnings/Conference Calls

Specialty Chemical firm DCM Shriram announced the Q2FY23 results: PAT for Q2 FY23 at Rs. 128 crore, down 19% YoY PAT for H1 FY23 at Rs. 382 crore, up 21% YoY Board Declared an Interim dividend of 230% amounting Rs 71.73 crore Net Revenue Q2 FY23 up 28% YoY at Rs 2,740 crore. Chemicals revenues up 62% at Rs. 781 crore led by prices Shriram Farm Solutions revenues up 33% at Rs. 238 crore led by volumes & better prices Fenesta revenues up 37% at Rs. 178 crore led by volumes growth & prices Vinyl revenues down 53% at Rs. 155 crore primarily due to lower volumes & prices PBDIT Q2 FY23 down 3% YoY at Rs 302 crs. Chemicals PBDIT up at Rs 250 crore vs Rs 108 crore Vinyl PBDIT at Rs (-ve 10) crore vs Rs 156 crore, led volumes and margin pressures. Sugar Business PBDIT lower at Rs (–ve 15) crore vs Rs 33 crore LY, being an offseason and lower margins Projects under implementation in Chemicals and Sugar, aggregating ~ Rs.3,500 crore are progressing well. Most of the sugar projects will get commissioned in Q3’ FY2023 and chemical projects are likely to be commissioned over the next 9 months. Tax cash outflow is limited MAT (17.47%). PAT for Q2 FY23 at Rs 128 crore vs Rs 158 crore during Q2 FY22 Interim Dividend declared by the Board at 230% amounting to Rs 71.73 crore. 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 continue to operate in a very volatile economic environment given the geo political uncertainties, climate change, monetary tightening and fears of recession around the corner. India is better placed with strong GDP growth but is not immune to above factors. Our Company also gets impacted by these factors but has inherent strength in its business model and financials to manage the tough operating environment. Our Chemical business has performed well with reasonably firm product prices, a result of global supply chain imbalance. Vinyl business is facing headwinds of lower product prices with global decline in demand and higher sourcing from China. The major concern today for Chloro-Vinyl business is high energy prices which continue to be firm given the geo political instability. We are taking steps to reduce our energy costs by setting up additional 120 MW energy efficient captive coal based power plant and tying up for 50MW renewable power. We plan to take more such steps to reduce our costs as well as increase our green footprint. Sugar industry is poised for growth with favorable dynamics with respect to Ethanol as well as Sugar. For the state of UP there is a need for better policy support to push exports as well as cane juice based Ethanol. The Company is exploring opportunities to build multiple revenue streams beyond Sugar and Ethanol through Circular economy. Agri Input business of Shriram Farm Solutions witnessed growth despite unfavorable monsoons Fenesta business continues its growth trajectory with strong operating performance. It is now entering into business of Facades. Our Investment projects of around Rs. 3,500 crs across businesses are under progress as per schedule. Given the health of our balance sheet and operating cash-flow, we will look forward to more growth avenues and enhance our scale, integration and cost efficiencies. Result PDF

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DCM Shriram Ltd. News, Corporate filings and Earnings/Conference Calls

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