DCM Shri ram Consolidated Ltd announces its Q1FY14 financial results
- Net Revenue at Rs 1549 Crores up from Rs 1427 Crores in the same quarter last year a growth of 8.5%.
- PBIT before exceptional items up by 28% at Rs. 167.2 Crores
- Net Profit at Rs. 114 Crores as compared to Rs 31 crores.
New Delhi : DCM Shriram Consolidated Ltd announced its Q1FY14 financial results today. Net Revenue was at Rs 1549 Crores up from Rs 1427 Crores in the same quarter last year, a growth of 8.5%.PBITbefore exceptional items is up by 28% at Rs. 167.2 Crores.The Net Profit stood at Rs. 114 Crores in Q1FY14 as against Rs 31 Crores in Q1FY13(after exceptional item of Rs. 56.3 Crores).
- Contributors to PBIT growth are:
- Chloro-Vinyl Business- PBIT up by 11% at Rs. 81.3 Crores
- Cost reductions mitigated major effects of Price drop.
- Last year also had shutdown effect.
- Shriram Farm Solutions business up by 42% with Value added inputs up by 19%.
- Almost breakeven in Hariyali business in Q1 FY14 consequent to implementation of the restructuring and rationalization plan involving restricting activities to profitable product lines only.
- Sugar Business facing challenges with Sugar Margin for current season at negative Rs. 171 per quintal as compared to positive Rs. 211 per quintal in last season
- The financial charges are flat at last year's level.
Commenting on the performance for the quarter, 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 satisfactory performance in the quarter ledby :
- Better Margins in the Chloro-Vinyl business in spite of lower product prices.
- Higher earnings in the Shriram Farm Solutions business.
- Almost Nil losses in Hariyali business consequent to rationalization of its operations.
The Chloro-Vinyl business continues to deliver healthy performance with high capacity utilization and sustainable cost reductions achieved by the company in the last two years.
Bioseed and Shriram Farm Solutions businesses continue to deliver stable earnings which we expect should sustain going forward. We continue to invest in these businesses as we believe that these will deliver healthy growth rates in the medium term given our strong research programme, healthy pipeline of products and increasing geographical presence.
In the Sugar business, the Government has taken several steps in the past 6 months to partially de-control this sector on the sales side, including removal of levy quota, release mechanism etc. The Cane prices and some of the by-product prices and sales, continue to be highly controlled and this does not augment well of a healthy sugar industry. This is putting the financial performance of the Sugar companies under stress. We believe, the Government needs to implement the Rangarajan Committee report to full extent to create a more balanced and stable policy framework for Sugar industry which will benefit the farmers as well as consumers.
In Fenesta, the focus on expanding presence in the retail segment is yielding encouraging results.
Overall, we expect healthy performance going forward. We also continue to conserve our internal cash generation to further strengthen our financial structure and reduce financial charges”.
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