DCM Shriram Ltd. announces its Q1 FY ’18 financial results

Posted by: at 8/01/2017 12:20:00 am


Revenues up 36%, Net Profits up 40%

Ø Chemicals sales volume up 42%, Sugar sales volume up by 116%


Ø Investment Projects of ~Rs 350crs underway:
·   150 KLD Molasses based distillery to commission by January18
·   Chlor Alkali expansion at Kota to commission by June18
·   60  TPD  ‘Anhydrous  Aluminum  Chloride facility  at  Bharuch  to  commission  by
June’18

Ø  Credit Rating ICRA has upgraded the long term rating from  ‘AA-’ to ‘AA’

New Delhi, 1st Aug 2017: DCM Shriram Ltd. announced its Q1 FY18 financial results today.

Q1 FY18 Highlights

[Rs.cr]

Q1

FY18
FY17
Total revenue from operations
2,052
1,514
PBDIT
342
250
PBIT
311
226
Finance Cost
24
20
PAT
233
167



Key Developments and Outlook – Q1 FY 18


1 Revenues growth of 36% during the quarter due to:
a.   Sugar sales volume up by 116%
b Chemicals sales volume up by 42% on account of capacity expansion at Bharuch last year
PBDIT up 37% YoY to Rs 342 crores due to:

a.   Sugar profits up by 205%, a result of higher sales volumes

b Chemicals  profits  up  by  37%  with  higher  sales  volumes  and  lower  costs  attributable  to adoption of latest technology in all production facilities. Margins are stable

c Bioseed Improved volumes in India and International Business

d Overall PBDIT Margin stood at 16.7% vs 16.5% in the same period last year



3 Finance costs increased to Rs 24 crores from Rs 20 crores in Q1 FY 17, post commissioning of the investment program of ~Rs 700 crs.


4 PAT increased by 40% YoY to Rs 233 crores vs 167 crores last year



5 Gross Debt at Rs. 817 crores and Net Debt at Rs. 331 crores as on June 30, 2017



6 Projects involving investments of about Rs 350 crs under implementation:

-     150 KLD Molasses based distillery at Sugar unit; commissioning expected by Jan18.
-     80TPD Chlor Alkali expansion at Kota; commissioning expected by Jun18.
-     60TPD  Anhydrous  Aluminium  chloride  plant  at  Bharuch;  commissioning  expected  by
Jun18



7 Credit Rating ICRA has upgraded the long term rating from  ‘AA- to AA and Short term rating has been reaffirmed at A1+’


Commenting on the performance for the quarter, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said:

“The company achieved satisfactory results in Q1’18 led by significant volume and profits growth in
Chemicals and Sugar Business. Other businesses witnessed stable performance.

The  Expanded  Chlor-Alkali  capacity  at  Bharuch,  is  operating  satisfactorily.  Capacity  utilization  is registering steady growth. We are pursuing forward integration into Chlorine consuming chemicals which will further strengthen our Chlor-Alkali businesses. Accordingly, the Board has approved setting up Aluminum Chloride business/plant which will be commissioned by June’18. Our ongoing project to further enhance Chlor-Alkali capacity (liquid & flakes) at Kota is planned to be commissioned by June’18.

Our Sugar business achieved 48% higher production in Sugar season 2016-17. The Cane planting for season 2017-18 has registered healthy growth. This would strengthen our competitiveness through economics of scale and higher revenues from co-gen power as well as proposed distillery (to be commissioned by January’18).

We continue to focus on strengthening our Chloro-Vinyl and Sugar business. At the same time we are taking steps to grow our Fenesta Windows business and Farm inputs businesses i.e. Bioseed and Farm Solutions. We expect to sustain overall good growth of the company over the medium term”.



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