Conference Call with DCM Shriram Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Diversified company DCM Shriram announced Q1FY26 results Consolidated revenues of Rs 3,455 crore, a 12% YoY increase, and PBDIT of Rs 326 crore, up 19% from the Q1FY25. Profit After Tax stood at Rs 114 crore, reflecting a 13% rise. The annualized ROCE stood at 13.2%, while net debt was stable at Rs 1,481 crore, demonstrating financial prudence and a strong capital structure. Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said: “Global growth is hovering just above what many analysts consider a recessionary threshold. Trade tensions - particularly new and higher tariffs in major economies, policy unpredictability and geo-politics are dampening investor confidence, slowing investment and causing supply chain disruptions. Financial market volatility has increased sharply in 2025, contributing to a precarious economic climate. India is consolidating its place as the fastest-growing large economy, having recently become the world’s fourth largest, and is projected to continue this trajectory with policies aimed at attracting investment and fostering innovation. Global caustic soda supply chain is disrupted owing to tariff related headwinds and geo-political conflicts, keeping international prices range bound. The business witnessed volume led growth with improved margins. The company has accelerated its entry into advanced materials through its proposed acquisition of 100% stake in Hindusthan Specialty Chemicals Ltd. Sugar and Ethanol business is stable but facing margin pressures. Lower than expected stock levels should fundamentally support prices of Sugar. Recent retrospective levy of export fee from 2018 on Ethanol sold outside the state of UP, is a regressive step by the state government. A comprehensive review and reform of the sugar policy framework is essential to ensure financial viability for both farmers and manufacturers. Fenesta continues to advance its growth trajectory in the core business while strategically broadening its portfolio and revenue platforms. The acquisition of majority stake in a hardware company is a strategic step towards building growth pipeline. The business is focusing on delivering value and service to its customers along with a higher wallet share in home space. With a strong emphasis on innovation and digital connectivity, Shriram Farm Solutions is enhancing its scale and product portfolio of differentiated offerings while deepening its engagement with the farming community. Backed by a robust balance sheet, we’re advancing into adjacent business areas, leveraging both organic and inorganic opportunities, and embedding sustainability at every stage to secure responsible, long-term growth.” Result PDF
Diversified company DCM Shriram announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Net Revenue: Rs 2,877 crore compared to Rs 2,399 crore during Q4FY24, change 20%. PBDIT: Rs 426 crore compared to Rs 289 crore during Q4FY24, change 47%. PAT: Rs 179 crore compared to Rs 118 crore during Q4FY24, change 52%. FY25 Financial Highlights: Company recorded a consolidated Profit After Tax (PAT) of Rs 604 crore for FY25, reflecting a 35% YoY growth. Consolidated net revenue, net of excise duty, stood at Rs 12,077 crore, up 11% over FY24. Ajay Shriram, Chairman & Senior Managing Director, & Vikram Shriram, Vice Chairman & Managing Director, said: “The growth patterns in world economy are becoming very uncertain, with projections indicating a global growth rate of less than 3% for 2025 and 2026. The imposition of reciprocal tariffs by the United States and consequent retaliation by China have sent shockwaves through international markets, extending far beyond bilateral relations, influencing supply chains, inflation rates, and economic stability worldwide. The Reserve Bank of India (RBI) has taken a pro-growth stance, cutting interest rates to stimulate economic activity amid global recessionary concerns & volatility. Global and domestic caustic prices were better supported in the current financial year although they were volatile. Domestic demand for Caustic soda has improved, however Chlorine was under pressure, hence the ECU prices are still suboptimal. We have commissioned most of our major projects in Chemicals in the current year with reasonable capacity utilisation, leading to volume led growth and better cost structure. The chlorine downstream projects, once operational, will further enhance the utilization rates of Chlor-alkali and strengthen the Chemicals business. Sugar & Ethanol business is stable with increase in prices over last couple of months and consequently margins. The sugar stocks for SS 2025 in India are expected to be lower than last year on account of lower production which shall also support the prices. We have commissioned 12 TPD CBG Project in March 2025. There is a need for fundamental shift in Sugar policy framework, in order to make it remunerative for the farmers as well as manufacturers. Fenesta business is strategically prioritizing accelerated growth in its core segment, while also expanding into new revenue platforms such as Facade, Wooden doors and Hardware. Shriram Farm Solutions continues to focus on providing research driven and differentiated products to farmers and leveraging digital platforms to expand farmer engagement. Leveraging our strong balance sheet, we are strategically expanding into adjacencies to drive scale, enhance operational integration, and maximize cost efficiencies, positioning ourselves for sustained competitive advantage.” Result PDF
Conference Call with DCM Shriram Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Diversified company DCM Shriram announced Q3FY25 results Net Revenue: Rs 3,367 crore compared to Rs 3,035 crore during Q3FY24, change 11%. PBDIT: Rs 537 crore compared to Rs 480 crore during Q3FY24, change 12%. PAT: Rs 262 crore compared to Rs 240 crore during Q3FY24, change 9%. Ajay Shriram, Chairman & Senior Managing Director & Vikram Shriram, Vice Chairman & Managing Director, said: The global economic growth for calendar year 2024 ended on a mixed note and for 2025, it is projected to be modest. The geopolitical landscape continues to be unpredictable. Central banks across major economies are expected to adopt more accommodative policies in response to the economic slowdown, however US will see slower adoption of accommodative policies leading to global uncertainty. In India, GDP growth is forecasted lower at around 6.50% in FY26, there are concerns about inflation and structural challenges at global and domestic level. Caustic soda segment continues to function at reasonable operating levels on account of increased demand from key end user industries. The prices have been volatile and are susceptible to sudden changes on account of supply chain imbalances. Excess capacities in India are impacting ECUs. The reduction in energy costs has provided support to overall cost structure. Volumes on account of H2O2 , Aluminum Chloride and flexi flaker plant at Bharuch has further added to overall profitability of the Chemicals complex. The Chlorine downstream projects announced in the last quarter will further strengthen the utilization levels and profitability of the Chemicals complex. Both global and Indian sugar production estimates have been revised downward. Sugar business is facing margin pressures as prices are yet not commensurate with the increase in cost of production in the last season. The industry is pushing for allowing exports and higher MSP for sugar. Ethanol business outlook remains positive. Loni capacity expansion came online in the current quarter and CBG project will get commissioned in the next quarter. Fenesta business is focusing on enhancing growth in core segment as well as developing new revenue platforms, hardware being one of them. Shriram Farm Solutions business continues to drive growth with its science based products. Its new product launches are being well appreciated by the market. Considering the strength of our balance sheet, we are proactively seeking growth opportunities in adjacencies that will enable us to increase our scale, improve integration, and enhance cost efficiencies. Result PDF
Conference Call with DCM Shriram Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Diversified Products company DCM Shriram announced Q1FY25 results: Revenue rose by 3% YoY to Rs 2,876 crore PAT rose by 77% YoY to Rs 100 crore PBIT rose by 68% YoY to Rs 187 crore Net Debt as on 30th June, 2024 is Rs 1,459 crore vs Rs 1,434 crore as on 31st March, 2024. ROCE for the period came in at 14.3% vs 13.6% for financial year ended on 31st March 2024. Commenting on the performance for the quarter ending June 2024, in a joint statement, Ajay Shriram, Chairman & Senior Managing Director and Vikram Shriram, Vice Chairman & Managing Director, said: "Global economy continues to be in a state of uncertainty with geopolitical events, trade barriers & climate changes. There have been multiple global logistic issues emanating from China as well as Red Sea, impacting global trade. The central banks have reacted differently over last few months on relaxing interest rates, with EU and Canada cutting interest rates, US on a prolonged pause and Japan raising rates for the first time in past 17 years. Amidst all this, Indian economy continues to be strong, ably supported by policy continuity, fiscal consolidation and inflow of foreign funds. Forecast of a normal monsoon augurs well for the agricultural sector in particular and economy in general. Global caustic demand remains balanced and India remains net exporter of caustic, with surplus capacity. Our Chemical business has performed better in this quarter as well as sequentially led by higher volumes and reduction in the energy costs. We have commissioned the 850 TPD Caustic capacity and 120 MW captive power plant, both these will add to scale and cost efficiencies. Given the steady growth in the downstream/consuming industries, we expect positive outlook for the business over the medium term. Sugar business is stable but facing margin pressures. Current sugar prices are yet not commensurate to the increase in cost of production due to increase in SAP and adverse weather conditions. Ethanol business is stable, the growth of this vertical is subject to availability of feedstock. There is a need for better policy framework on grain based feedstock . Fenesta Building Systems and Shriram Farm Solution businesses continue to maintain their growth momentum. Our capex in Chemical business is nearing completion. Hydrogen Peroxide Plant has started trial runs and ECH plant is expected to start trial runs by Q2FY25. Expansion of sugar capacity and CBG project in Sugar business are progressing as per schedule. Sustainability remains at the core of our business strategy for guiding our actions & decisions. We prioritize our actions in the sphere of water conservation, energy conservation, green energy, circular economy and social upliftment to create lasting value for our stakeholders. Our growth agenda is directed towards evaluating adjacencies in our core businesses which will strengthen and enhance our portfolio." Result PDF
Conference Call with DCM Shriram Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.
Specialty Chemicals company DCM Shriram announced Q1FY24 results: Net Revenue of Rs 2,780 crore in Q1FY24 compared to Rs 2,851 crore in Q1FY23, down 2% YoY PBDIT of Rs 183 crore in Q1FY24 compared to Rs 464 crore in Q1FY23, down 60% YoY PAT of Rs 57 crore in Q1FY24 compared to Rs 254 crore in Q1FY23, down 78% YoY PBIT of Rs 111 crore in Q1FY24 compared to Rs 403 crore in Q1FY23, down 72% YoY Finance cost of Rs 25 crore in Q1FY24 compared to Rs 17 crore in Q1FY23, up 52% YoY Depreciation of Rs 72 crore in Q1FY24 compared to Rs 61 crore in Q1FY23, up 19% YoY Net Debt as of 30th June 2023 is Rs 926 crore (LY Rs 8 crore) & as on 31st March 2023 is Rs 681 crore. ROCE for Q1FY24 came in at 21.2% vs 36.5% for Q1FY23. Tax cash outflow is approx. 17.5% Commenting on the performance for Q1FY24, in a joint statement, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said: The world economy continues to face headwinds amidst weak growth prospects and geo-political uncertainties. A confluence of factors, including legacy effects of the Covid-19 pandemic, the elongated Ukraine-Russia war, climate change issues, and inflation are weighing on the global economic outlook. Inflation in major economies continues to be at higher than normal levels, leading to the most aggressive interest rate hike cycle in decades, causing financial conditions to tighten. While global growth and demand are impacted, growth momentum in India is strong. Our Chemicals and Vinyl businesses are facing challenges as a result of global disruptions in demand, supply, and costs. We are taking measures in terms of scale, costs, and integration that will help us weather these tough times. Both our projects at the Chemicals complex in Bharuch on Green Power & 120MW power plant will start bringing cost benefits during Q2/Q3 FY2024 and onwards. Other projects in the chemicals business are also in advanced stages with expected commissioning in the next six months. The sugar business environment is positive. Global sugar prices are still elevated, with 2022-23 being a deficit year and expected in 2023-24 as well. Indian markets remained insulated from global markets as the export quota for the current year is already exhausted. Sugar margins in Uttar Pradesh continue to be suboptimal since sugar prices have not moved in tandem with the increase in sugarcane cost, which continues to be higher in Uttar Pradesh. Our grain process at Ajbapur distillery was also commissioned which will add to our Ethanol production capacity. Fenesta & Shriram Farm Solution businesses continue to witness good momentum and have become significant contributors to growth. We strive for sustainability, be it water conservation, energy conservation, green energy, or circular economy, in all our businesses. We will continue to look for growth opportunities in core and adjacent businesses along with ensuring a healthy Balance sheet and Cash flow. Result PDF