Specialty Chemicals firm DCM Shriram announced Q4FY23 & FY23 results: Q4FY23: Net Revenue for Q4FY23 down 3% YoY at Rs 2,720 crore PBDIT for Q4FY23 is down 44% YoY at Rs 372 crore PAT for Q4FY23 is down 53% at Rs 187 crore vs Rs 401 crore last year ROCE at 27% vs 34% in FY22 Net debt as of 31st March 2023 is Rs 681 crore vs Rs 4 crore as of 31st March, 2022 The final Dividend declared by the Board in this meeting at 180% amounting to Rs 56.14 crore (Total for the year at 700% amounting to Rs 218.32 crore) FY23: Net Revenue (net of excise duty) up 20% YoY at Rs 11,547 crore PBDIT for FY23 is down 9% YoY at Rs 1,726 crore vs Rs 1,888 crore for FY22 PAT for FY23 is down 15% at Rs 911 crore vs Rs 1,067 crore during FY22 Commenting on the performance for the quarter and period ending March 2023, in a joint statement, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said: 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. 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. 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." Result PDF
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 PDF
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
Specialty Chemicals firm DCM Shriram Announced Q1FY23 Result : Net Revenue up 46% at Rs/Cr 2851 PBDIT up 55% at Rs/Cr 464 & PAT up 61% at Rs/Cr 254 Net Revenues for Q1 FY23 up 46% YoY at Rs/cr 2,851. Chloro-Vinyl up 90% at Rs/cr 1,140 driven by prices & volumes. Sugar up 26%, at Rs/cr 710* driven by higher volumes and prices. Fenesta up 54% at Rs/cr 167 led by volumes and prices in both project & retail segment PBDIT for Q1 FY23 up 55% YoY at Rs/cr 464. Chemical up 227% at Rs/cr 368 due to better margins & volumes Fenesta up 168% at Rs/cr 32 led by higher volumes & better margins in retail segment Sugar down 49% at Rs/cr 22 led by lower margins in sugar due to increased cost of production consequents to increase in SAP & lower recoveries in last season. Projects under implementation in Chemicals and Sugar, aggregating Rs/cr 3,500 approximately, are progressing well and scheduled to be commissioned in next 12 months ROCE is higher at 37% vs 23% in June’21. Commenting on the performance for the quarter and period ending March 2022, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said We are witnessing very high inflation levels across the globe after many decades. There are supply chain disruptions, prices of key commodities are still elevated, Interest rates are rising, currencies across the globe are at historic lows against the US dollar and there is Russia-Ukraine conflict which is continuing. These have led to uncertain economic environment. With our strong businesses and balance sheet we are well placed to manage these uncertainties. Our operating and financial performance during the quarter continues to remain strong. Chemicals business has performed well, with cost pressures being more than compensated with increase in volumes and product prices. Some softening is likely with the reduction in global demand however overall returns are expected to remain reasonable and the cost improvement measures being taken will cushion our margins. Vinyl business is facing cost pressures however the margins are good. Sugar business is facing margin pressures in Sugar, however Ethanol earnings are stable. This season costs have gone up with increased in SAP as well as adverse climate factors. Sugar policy especially in UP requires better support from government. Ethanol continues to get fillip from the Government considering their target of 20% mandate by 2025, here again cane juice based ethanol requires a differentiated policy for UP given unfavorable cost dynamics. Fenesta & Shriram Farm Solutions businesses continue to witness good growth with new product portfolios & geographical expansion. Bioseed India has shown improvement despite delay in monsoons. We are investing close to Rs 3,500 crs in various projects primarily in Chemicals and Sugar business which are to be commissioned over the next 12 months and will be funded from internal accruals and debt. These projects will increase our scale, forward integration, new product lines along with bringing efficiencies and cost reduction. Some of these projects are directed towards creating wealth out of waste, building future capabilities and reducing carbon footprint.With comfortable balance sheet and cash flow we will continue to deliver growth on a sustained basis. Result PDF