DCM Shriram Ltd reported more than two-fold jump in its consolidated net profit at Rs 60.48 crore for the quarter ended December on higher sales and fall in interest outgo. Net profit of the company, which is engaged into sugar, fertiliser, bio-seeds and chloro-vinyl businesses, among others, stood at Rs 27.36 crore in the year-ago period. Income from operations rose to Rs 1,262.93 crore during the third quarter of this fiscal from Rs 1,197.05 crore in the corresponding period of the previous year, DCM Shriram said in a regulatory filing.
Finance cost declined to Rs 14.39 crore from Rs 26.07 crore during the quarter under review. "The company reported a satisfactory performance with stable operations and positive improvements in sugar margin structure and outlook," the company's Chairman and Sr MD Ajay Shriram and Vice Chairman & MD Vikram Shriram said. "The policy framework for sugar business is moving in the right direction with the government and industry pursuing export of surplus sugar, developing a rational cane pricing policy linking sugarcane and encouraging the production and use of ethanol," they added.
"Chloro-vinyl business is directly impacted by the global conditions and faces threat from low priced imports. We continue to focus on improving our cost structure and scale to strengthen our competitiveness," Shriram said. Stating that the growth of agri-input businesses is affected by adverse weather conditions, Shriram added, "We are further strengthening our product portfolio and intensifying our marketing efforts".
Net debt of the company stands at Rs 435 crore as on December 31 against Rs 491 crore a year ago.
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