DCM Shriram falls over 7% after weak March quarter results

DCM Shriram shares dropped as much as 7.54 per cent to hit an intraday low of Rs 938.90, on Tuesday. The fall came after the company reported a weak set of quarter-ending March (Q4FY24) results.

DCM Shriram’s net profit plummeted nearly 37 per cent on a year-on-year (Y-o-Y) basis to Rs 117.8 crore in Q4FY24, from Rs 186.7 crore in the same quarter a year ago (Q4FY23).

The company’s revenue fell 11.8 per cent on a year-on-year basis to Rs 2,399.3 crore in the March quarter of financial year 2024, from Rs 2,720 crore in the March quarter of financial year 2023.

Its earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit, dropped 22.7 per cent annually to Rs 313.1 crore in Q4FY24, from Rs 405.3 crore in Q4FY23.

Additionally, DCM Shriram’s operating margin squeezed 180 basis points (bps) to 13.1 per cent in the March quarter, as opposed to 14.9 per cent in the same quarter previous fiscal.

DCM Shriram operates as a multifaceted company involved in the production of fertilisers, pesticides, and sugar refining. Its business spans across agriculture, rural development, chlor-vinyl, and value-added industries. 

The company offers a wide range of agricultural products including urea, sugar, farm treatments, and hybrid seeds. Additionally, it manufactures caustic soda, chlorine, calcium carbide, aluminium chloride, PVC resins, PVC compounds, power, and cement. DCM Shriram also provides fenestration building systems such as UPVC windows and doors.

DCM Shriram stock’s 52-week high is Rs 1,175 while its 52-week low is Rs 806.95 apiece. The market capitalisation of the company is a little over Rs 15,000 crore, according to Bombay Stock Exchange (BSE).

At 11:46 AM, DCM Shriram shares were trading 5.10 per cent lower at Rs 963.80.. By comparison, S&P BSE Sensex was down 0.70 per cent at 73,375.96 levels.