DCM Shriram's profit up 7.7 pc in Q1 to Rs 374 crore

DCM Shriram on Tuesday reported 8 per cent decline in its net revenue from operations to Rs 1,902 crore in the first quarter of 2019-20 year-on-year but profit before depreciation, interest, and taxes (PBDIT) moved up 7.7 per cent to Rs 374 crore.

In Q1 of FY19, the net revenue from operations totalled Rs 2,068 crore while the PBDIT was Rs 347 crore. The profit after tax slipped 1.3 per cent to Rs 221 crore in Q1 FY20 from Rs 218 crore in Q1 FY19.

Chemicals revenues were up 18 per cent year-on-year at Rs 552 crore led by volumes growth of 22 per cent which was largely driven by new capacities additions at Kota and Bharuch from August 2018 to April 2019. Fenesta revenues increased by 17 per cent driven by both retail and projects.

However, overall sugar segment revenues came down 22 per cent at Rs 482 crore. Distillery revenues were higher led by increased volumes 48 per cent but sugar volumes lower 36 per cent as the government imposed sales release mechanism from June 2018. Power volumes were also lower due to lower season days in Q1 FY20 vs Q1 FY19.

Bioseeds international business revenue moved up 11 per cent driven by corn in the Philippines and Indonesia. Revenues for India operations edged lower by 46 per cent partly due to deferment of sales to Q2 FY20.

"We continue to move forward in our strategic direction of expanding the scale, strengthening integration, achieve the lowest cost of operations and enhance customer focus," said Chairman and Senior Managing Director Ajay Shriram along with Vice Chairman and Managing Director Vikram Shriram.

"As a growth-oriented enterprise, it is going to be our endeavour to strengthen business through capacity expansion, efficiency improvement, and integration in order to realise the next level of growth while ensuring a strong balance sheet," they said in a joint statement.