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
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.