DCM Shriram Ltd Monday reported a 2 per cent decline in its consolidated net profit at Rs 168.7 crore for the second quarter of this fiscal on higher finance cost.
Its net profit stood at Rs 172.03 crore in the year-ago period, the company said in a regulatory filing.
Total income rose to Rs 1,717.28 crore in the July-September period of 2018-19 fiscal from Rs 1,620.53 crore in the corresponding period of the previous year.
DCM Shriram is mainly into sugar, seed, chemicals and fertiliser businesses.
The company's finance cost increased to Rs 41 crore from Rs 20 crore during the period under the review.
In a joint statement, DCM Shriram chairman and senior MD Ajay Shriram and vice chairman MD Vikram Shriram said: "We have progressed well on all our growth and profit improvement plans. The rationalisation of bulk fertilisers and Hariyali business is also moving satisfactorily. The product prices in almost all our businesses are improving."
The expansion projects in chemicals, PVC, sugar (including co-gen power and distillery) and chlorine based chemicals have started coming on stream from September/October 2018, the statement said.
"These steps will provide volume growth as well as better margins. Sugar business has recorded positive developments with several steps taken by the central and UP government. The industry however, still continues to face severe challenges with sugar prices being substantially lower than the costs.
"Faster implementation of the measure announced and more proactive measures will help in strengthening the sector which will reduce stress for the farmers and the industry," it said.
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