DCM Shriram Q1 net jumps over four fold to Rs 21 cr

Buoyed by good growth of agri-products and cement businesses, DCM Shriram Consolidated (DCSL) today reported an over four-fold jump in its net profit to Rs 21.24 crore in the first quarter ending June 30, compared to the same period last fiscal.

The company had a net profit of Rs 4.87 crore in the first quarter ending June 30, 2008.

"Our agri-business, which includes fertilisers, sugar and other agri-products grew about 50-55 per cent while cement business grew about 75 per cent quarter on quarter. These segments helped in maintaining the growth to a large extent," DCM Shriram Consolidated CMD Ajay Shriram told PTI.

The company's net operating income grew by 12.64 per cent to Rs 893.55 crore from Rs 793.22 crore last year.

The company reported 16.62 per cent growth in agri-businesses to Rs 484 crore during the first quarter, compared to Rs 415 crore in the same period last fiscal.

Shriram said the group is working on developing hybrid seeds and will be working on developing its rural retail initiative.

"Our new businesses such as Hariyali Kisaan Bazaar, Fenesta Building Systems, agri inputs and bio-seeds are showing momentum and have contributed to the improved performance," Shriram said. Revenues from DCSL's rural retail chain Hariyali Kisaan Bazaar is up by 24.9 per cent to Rs 108.7 crore during the quarter under review as compared to Rs 87 crore in the same period last fiscal.

From its sugar division, the company reported a revenue of Rs 203.7 crore, up 91.99 per cent as against Rs 106.1 crore in the same period last fiscal.

DSCL is a Rs 3,500 crore integrated business entity, with presence in agri-rural value chain, sugar, cement fertilisers and chloro-vinyl business.