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27 Years
4.4 Star
1 Crore +
Specialty Chemicals company DCM Shriram announced Q1FY24 results:
- Net Revenue of Rs 2,780 crore in Q1FY24 compared to Rs 2,851 crore in Q1FY23, down 2% YoY
- PBDIT of Rs 183 crore in Q1FY24 compared to Rs 464 crore in Q1FY23, down 60% YoY
- PAT of Rs 57 crore in Q1FY24 compared to Rs 254 crore in Q1FY23, down 78% YoY
- PBIT of Rs 111 crore in Q1FY24 compared to Rs 403 crore in Q1FY23, down 72% YoY
- Finance cost of Rs 25 crore in Q1FY24 compared to Rs 17 crore in Q1FY23, up 52% YoY
- Depreciation of Rs 72 crore in Q1FY24 compared to Rs 61 crore in Q1FY23, up 19% YoY
- Net Debt as of 30th June 2023 is Rs 926 crore (LY Rs 8 crore) & as on 31st March 2023 is Rs 681 crore.
- ROCE for Q1FY24 came in at 21.2% vs 36.5% for Q1FY23.
- Tax cash outflow is approx. 17.5%
Commenting on the performance for Q1FY24, in a joint statement, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said: The world economy continues to face headwinds amidst weak growth prospects and geo-political uncertainties. A confluence of factors, including legacy effects of the Covid-19 pandemic, the elongated Ukraine-Russia war, climate change issues, and inflation are weighing on the global economic outlook. Inflation in major economies continues to be at higher than normal levels, leading to the most aggressive interest rate hike cycle in decades, causing financial conditions to tighten. While global growth and demand are impacted, growth momentum in India is strong.
Our Chemicals and Vinyl businesses are facing challenges as a result of global disruptions in demand, supply, and costs. We are taking measures in terms of scale, costs, and integration that will help us weather these tough times. Both our projects at the Chemicals complex in Bharuch on Green Power & 120MW power plant will start bringing cost benefits during Q2/Q3 FY2024 and onwards. Other projects in the chemicals business are also in advanced stages with expected commissioning in the next six months.
The sugar business environment is positive. Global sugar prices are still elevated, with 2022-23 being a deficit year and expected in 2023-24 as well. Indian markets remained insulated from global markets as the export quota for the current year is already exhausted. Sugar margins in Uttar Pradesh continue to be suboptimal since sugar prices have not moved in tandem with the increase in sugarcane cost, which continues to be higher in Uttar Pradesh. Our grain process at Ajbapur distillery was also commissioned which will add to our Ethanol production capacity.
Fenesta & Shriram Farm Solution businesses continue to witness good momentum and have become significant contributors to growth.
We strive for sustainability, be it water conservation, energy conservation, green energy, or circular economy, in all our businesses.
We will continue to look for growth opportunities in core and adjacent businesses along with ensuring a healthy Balance sheet and Cash flow.
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