DCM Shriram soars over 10% on strong Q4 results

The stock rallied 12% to Rs 186 after the company posted profit of Rs 51 crore in Q4FY16 against loss of Rs 40 crore.

DCM Shriram has soared 12% to Rs 186, also its 52-week high on the BSE, after the company posted a net profit of Rs 51 crore for the fourth quarter ended March 31, 2016 (Q4FY16), on the back of strong performance from sugar business. The company had reported a net loss of Rs 40 crore in the same quarter last fiscal.

Net revenues up by 1.8% year on year (YoY) to Rs 1,333 crore, primarily due to higher volumes in bulk fertilizers.

Sugar business turned breakeven from significant losses last year, led by lower cost of production and better prices in Q4.

Sugar business earnings improved to Rs 57 crore in Q4FY16 from loss of Rs 56 crore in Q4FY15, due to better sugar prices and lower cost of production led by higher sugar recoveries, the company said in a statement.

Fertilisers business earnings improved to Rs 6 crore led by higher energy efficiencies as well as volumes, it added.

At 02:36 PM, the stock was up 11% at Rs 184 on the BSE as compared to 1% decline in S&P BSE Sensex. The trading volumes on the counter surged an over 10-fold with a combined 1.9 million shares changed hands on the BSE and NSE so far.