Conference Call with DCM Shriram Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.
DCM Shriram declares Q4FY22 result: PAT for FY22 up 59% at Rs 1,067 crs, PBDIT up 52% at Rs 1,888 crs PAT for Q4 FY22 up 73%, PBDIT up 69% YoY Board Recommended Final Dividend 245%, Total for the year at 735% Net Revenues for Q4 FY22 up 28% YoY at Rs 2,796 crs. Chloro-Vinyl revenues up 85% at Rs 1,162 crs driven by prices. Fenesta revenues up 30% at Rs 153 crs driven by project segment & prices. Sugar revenues down 26%, at Rs 755 crs due to lower sugar export since parity better in western/ southern states. PBDIT for Q4 FY22 up 69% YoY at Rs 663 crs. Chemical PBDIT up 403% at Rs 369 crs due to better volumes & margins. Sugar Business PBDIT down 19% at Rs 193 crs due to lower volumes & margins. Cost pressures due to higher energy prices in Chloro-Vinyl businesses and sugarcane price in Sugar business. Projects under implementation in Chemicals and Sugar, aggregating to about 3,300 crores progressing well. ROCE is higher at 35% vs 20% in March’21. New Investments Building manufacturing capabilities for Value added Agri inputs including Biologicals at an investment of Rs. 20 crs. Investment will be made through a subsidiary. Augmenting extrusion capacity in Fenesta Business, at an investment of Rs. 47 crs. 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: The Company has witnessed a strong operating and financial performance during the year. The business environment was dynamic throughout the year, as a result of second and third wave of Covid-19 and geo political concerns. Supply chain disruption was a major challenge along with high energy prices. We are glad that our businesses have managed the uncertain operating environment very well, which is reflected in the performance as well. Chloro-vinyl business continues to face cost pressures across all input materials, more specifically on account of energy costs. These pressures are not expected to come down in the near future. We believe that firm product prices should support high energy prices. We will continue to invest in improving cost efficiencies. Capital expenditure plans in this business are progressing well, although the project costs are facing headwinds of high commodity prices. Sugar season has ended in April’22. The Cane crushed has been in line with last season albeit with lower recovery due to climatic factors. The Sugar business in Uttar Pradesh requires a better policy support from Centre and State government given the disadvantage of higher Sugarcane price which makes cane juice based Ethanol less remunerative and distance from ports which makes exports unviable without subsidy/ Quota. Capital expenditure projects in this businesses are progressing as per plan We are overhauling our Bioseed India business and expect it to turnaround in next two years. Farm solution business continues to grow and we are investing in developing research and manufacturing capabilities for value added agri-inputs including biologicals. Fenesta business is enhancing its portfolio and capacities to sustain growth momentum. With comfortable balance sheet and Cash flows we will continue to deliver growth on a sustained basis. Result PDF
Conference Call with DCM Shriram Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Chemical manufacturing company DCM Shriram Ltd declares Q3FY22 result: PAT for Q3 FY22 up 38% YoY, PBDIT up 46% YoY Board Declared Interim dividend of 260% Net Revenues* up 26% YoY at Rs 2,730 crs. Growth in revenues led by Chloro-vinyl, Fenesta and Shriram Farm Solutions. Chloro-Vinyl revenues up 90% YoY at Rs 1,042 crs primarily led by prices. Shriram Farm Solutions revenues up 13% YoY at Rs 446 crs led by volumes Fenesta revenues up 26% YoY at Rs 137 crs driven by volumes and prices. Sugar revenues down 14% YoY, at Rs 565* crs primarily due to lower sugar volumes despite better prices, led by lower monthly releases. Cane crush during the current season is higher than same period last year. PBDIT up 46% YoY at Rs 614 crs. Chloro-Vinyl PBDIT at Rs 411 crs, up 107% YoY. Sugar Business PBDIT up 13% YoY at Rs 132 crs. Surplus cash net of debt at 31st December, 2021 is Rs. 245 crs vs net debt of Rs 385 crs at 31st December, 2020. ROCE came in higher at 27% vs 17% for Dec’20. Commenting on the performance for the quarter and period ending December 2021, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said: “This quarter was very challenging for our businesses. High and volatile commodity prices along with supply constraints made the operating environment very dynamic for Chloro-vinyl and Fenesta businesses. Erratic rains made supply chain management difficult for our Agri inputs businesses. We are glad that overall our businesses did well despite these challenges. Chloro-Vinyl business witnessed almost unidirectional increase in input costs especially energy prices. This was led by global factors such as increase in energy demand, supply constraints due to geo-political factors and adverse weather conditions. Freight costs are also adding to the cost push. However, globally the product prices have responded well to the increase in Input costs. Operating environment continues to be dynamic. Chemical expansion and downstream projects are facing headwinds from commodity price increase as well as marginal delays due to 2nd and 3rd wave of Covid-19 and extensive rains. Sugar season has started well with Cane Crush levels (till date) higher than last season. During the quarter Board has approved investments in Sugar business to the extent of Rs. 358 crs towards Sugar capacity expansion, Sugar refinery and additional Grain attachment. The 120 KLD distillery as well as the above projects are progressing as per plan. This will augur well for strengthening the business. It is important that the policy framework for the industry remains stable, for sustainability of the operating environment. Fenesta and Shriram farm Solution are growing well. Bioseed India is facing operational pressures, we expect the business to perform well over medium term. Our cash-flows are healthy which continue to strengthen our balance Sheet. For the next quarter we are bracing ourselves for another challenge in terms of third wave of Covid-19 pandemic.” Result PDF
Conference Call with DCM Shriram Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
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 PDF