DCM Shriram posts net profit of Rs 28.9 cr in Q2

Consolidated net sales rise to Rs 1,339.08 crore in the second quarter this fiscal

DCM Shriram Consolidated Ltd (DSCL) today reported a consolidated net profit of Rs 28.9 crore for the quarter ended September 30.

The integrated business group with presence in fertilisers and sugar had posted a net loss of Rs 38.4 crore in the year-ago period.

The consolidated net sales rose to Rs 1,339.08 crore in the second quarter this fiscal from Rs 1,060.19 crore in the same period last fiscal, it said in a BSE filing.

DSCL in a statement said that its performance improved on the back of better margins in chloro-vinyl business, upward price movement in sugar business and progress in restructuring and rationalising of its rural retail initiative, Hariyali Kisan Bazaar's operations.

"We continue to focus our efforts in improving cost structure in chloro-vinyl and sugar businesses and complete the restructuring plan for Hariyali in FY 13," DSCL Chairman and Senior Managing Director Ajay Shriram said.

Continuing better margins in chloro-vinyl business with firm prices and tight cost control and upward price movement in sugar has helped our performance, he added.

DSCL Vice Chairman and Managing Director Vikram Shriram said that the agri-inputs businesses- farm solutions and bioseed - continue to progress well though the financial performance was adversely impacted due to unfavourable weather conditions in our key operating areas.

"We are confident of registering good growth in these businesses over medium term," he added.

During the second quarter Bioseed Research USA, Inc has become a subsidiary of DSCL, the company's filing to the BSE said.

Shares of the company fell by 8.61% to settle at Rs 76.45 apiece on the BSE today.