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DCM Shriram Ltd.

BSE: 523367 Sector: Others
NSE: DCMSHRIRAM ISIN Code: INE499A01024
BSE 00:00 | 04 Oct 1018.40 14.25
(1.42%)
OPEN

1016.00

HIGH

1024.60

LOW

1003.65

NSE 00:00 | 04 Oct 1018.95 11.85
(1.18%)
OPEN

1012.15

HIGH

1024.60

LOW

1005.00

OPEN 1016.00
PREVIOUS CLOSE 1004.15
VOLUME 1836
52-Week high 1263.85
52-Week low 895.25
P/E 13.78
Mkt Cap.(Rs cr) 15,882
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1016.00
CLOSE 1004.15
VOLUME 1836
52-Week high 1263.85
52-Week low 895.25
P/E 13.78
Mkt Cap.(Rs cr) 15,882
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

DCM Shriram Ltd. (DCMSHRIRAM) - Chairman Speech

Company chairman speech

The financial year 2021-22 began with the second wave of the pandemicpeaking in first quarter of the year. It was a difficult period for our employees ourbusiness associates and the entire country. During this trying time it was heartening tosee that everyone rose to the occasion and extended a helping hand to those most in need.The company too put in place processes to ensure that timely support was available notjust to our employees but to the communities around us. This included medical helpdistributing oxygen concentrators setting up oxygen plants logistics and mentalcounselling wherever required. At the same time the government rolled out a massivevaccination drive on a scale never seen before. This brought the pandemic under controland helped restore a sense of normalcy. We would like acknowledge with gratitude andappreciation the untiring efforts of all those who made this possible.

On the economic front we witnessed two opposing trends emerge. As thepandemic abated business activity picked up rapidly and this got reflected in high GDPgrowth a record USD 400 billion plus of merchandise exports buoyant tax collection andimproved business confidence. At the same time global inflationary pressures started tobuild up which got rapidly accentuated in the last quarter due to supply chaindisruptions geopolitical conflicts and the

Russia-Ukraine war. In particular global energy prices hit new highsfueling domestic inflation.

Our energy intensive businesses witnessed cost pressures.

Despite the above challenges the company delivered strong operating andfinancial results reflecting the inherent resilience of our business. The earnings werehigher mainly due to enhanced margins as product prices rose substantially. Chloro-vinylbusiness reported strong growth driven by volumes and improved realizations in line withinternational prices. Businesses like Shriram Farm Solutions and Fenesta also recordedsatisfactory growth led by increased volumes benefitting from the improvement in overalleconomic scenario. However earnings of sugar business declined on account of lower sugarvolumes and lower availability of ?C? molasses.

The Company's total revenues from operations increased to Rs. 9677crores in FY22 vs. Rs. 8212 crores last year. Chloro-vinyl business registered a growthin revenue of 79% driven on account of higher realizations for all products and highervolumes for chlor-alkali business. Revenue of sugar business declined by 27% due to lowerexport and domestic sugar volumes while Shriram Farm Solutions business registered an 11%growth in revenue and

Fenesta business revenue grew by 47% led by volumes and prices. Bioseedbusiness revenue declined by 13% on account of reduced volumes.

Profit before depreciation interest and tax (PBDIT) improved toRs.1859 crores up approximately 51% over last year. The improvement was driven by betterprices and volumes in Chloro-vinyl and better volumes in Farm solutions. Fenesta earningswere also better. Profits in Sugar business were lower due to lower volumes. Bioseed Indiabusiness was impacted by lower volumes and inventory provisioning. Overall PBDIT marginsimproved to 19% from 15% last year.

Net Profit for FY22 was up by 58% to Rs.1049 crores from Rs.662 croresin FY21. Net Debt as on March 31 2022 stood at Rs. 4 crore vis-a-vis Rs. 135 crore as onMarch 31 2021. The strong balance sheet has encouraged us to undertake substantialcapital investment to facilitate future growth of the company. Some of the significantexpansion plans include increase in caustic soda capacity by 850 TPD and flakes capacityby 600 TPD add Hydrogen Peroxide facility with a capacity of 52500 TPA installEpichlorohydrine (ECH) facility with a capacity of 51000 TPA and Anhydrous AluminumChloride capacity of 32850 TPA.

Sugar projects relating to 120 KLD multi-feed distillery at Ajbapurincreased crushing capacity at Ajbapur and Hariawan Refinery Expansion (8000 TCD) are allprogressing as per schedule.

Under our CSR initiatives COVID-19 relief measures were furtherenhanced during the year. We followed a four-pronged strategy to mitigate the devastatingimpact of the second wave:

1. Augmented critical supplies to Government Hospitals SodiumHypochlorite Hand Sanitizer PPE Kits N95 Masks etc.

2. Stepped up vaccination hesitancy campaign and capacity building ofrural healthcare workers

3. Facilitated supply of critical needs such as oxygen by installingoxygen plants / distributing oxygen concentrators

4. Focused intervention with information education and communication(IEC) campaign for creating awareness.

We would like to take this opportunity to thank all our stakeholdersmembers of the board business associates employees suppliers government authoritieslenders and shareholders who have contributed to the growth of our company. With theircooperation we are confident of delivering superior value to all stakeholders andearnestly hope and pray for their safety and well being.

With best wishes

From L to R: Mr. Ajay S. Shriram and Mr. Vikram S. Shriram
(Vikram S. Shriram) (Ajay S. Shriram)
Vice Chairman & Managing Director Chairman & Sr. Managing Director

.