Diversified business group DCM Shriram has reported more than two-fold jump in consolidated net profit at Rs 156.35 crore for the fourth quarter of 2016-17 due to better performance of its sugar, chemical and plastic businesses.
Its net profit stood at Rs 54.53 crore in the year-ago period, the company said in a BSE filing.
Total revenues rose 23.73 per cent to Rs 1,722.96 crore in the quarter ended March 31, 2017 from Rs 1,392.44 crore in the same period last year.
The company’s expenses, however, remained higher at Rs 1,540.33 crore (Rs 1,300.65 crore).
For FY 2016-17, DCM Shriram’s consolidated net profit jumped 83 per cent to Rs 551.68 crore compared with Rs 301.75 crore in 2015-16.
Total income rose to Rs 6,163.96 crore from Rs 6,070.92 crore, the filing added.
“Healthy earnings growth during the year was a result of robust performance of the sugar, chemical and plastic businesses,” DCM Shriram Chairman & Senior Managing Director Ajay Shriram said.
Revenues from sugar operations increased to Rs 551.99 crore in the fourth quarter of 2016-17 from Rs 329.79 crore in the year-ago period.
“Commissioning of distillery will provide further impetus to the business. We are strengthening our cane development efforts further to achieve higher volumes on a sustained basis,” the company Vice-Chairman & Managing Director, Vikram Shriram, said.
On its chemical business, the company said: “The expanded chlor-alkali plant at Bharuch has stabilised. Capacity utilisation is constrained due to low chlorine demand. We are working on expanding chlorine sales and the overall capacity utilisation.”
Better monsoon last year along with expectation of a normal monsoon this year should augur well for the sale of agri-input businesses in India. “We are taking steps to turn around Bioseed International business,” the company said.
“The cash generation is robust, balance sheet is strong and business model has strengthened. We look forward to further strengthen our businesses and invest in the growth of the company over the medium term,” it added.
DCM Shriram is engaged in sugar, fertiliser, seeds, chloro vinyl and cement businesses, among others.