DCM Shriram Q3 net down 2% to Rs 342 cr; income rises 21% to Rs 3,417 cr

DCM Shriram Ltd, which is into chemicals, sugar, bioseed and fertiliser businesses, on Friday reported a marginal decline in its December quarter consolidated net profit to Rs 342.09 crore.

Its net profit stood at Rs 349.57 crore in the year-ago period.

Total income rose 21 per cent to Rs 3,417.06 crore during October-December quarter of this fiscal from Rs 2,815.95 crore in the corresponding period of the previous year.

During the April-December period of 2022-23 financial year, the net profit rose to Rs 724.17 crore from Rs 664.94 crore a year ago. Total income rose to Rs 9,324.75 crore in the first nine months of the current fiscal from Rs 7,039.67 crore in the corresponding period of the previous year.

Ajay Shriram, Chairman & Senior Managing Director, said the company has reported another consistent quarter of robust performance with positive/stable outlook across all the businesses.

"The operating environment is very challenging globally. Russia-Ukraine conflict does not seem to be concluding, Covid fears are back, there are risks of recession, the inflation seems to have peaked, however the monetary tightening is expected to continue albeit at a lower pace. India is better placed in terms of the growth story and so are each of our diversified businesses," he added.

The chloro-vinyl business is delivering reasonable returns although they have come off their all-time highs, said company's Vice Chairman & Managing Director Vikram Shriram.

"In Chlor-alkali, the product prices are off-their historic peak, the input costs continue to be elevated driven by energy prices. The margins for the Vinyl business were under pressure during the quarter, owing to reduced global demand and increased supply, the scenario is now improving," he added.

Sugar business continues to operate in a favourable policy environment, but to meet the Ethanol blending programme more policy measures are required, especially for the state of Uttar Pradesh, said Vikram Shriram.