DCM Shriram on Tuesday reported 38 percent decline in its consolidated net profit at Rs 27.4 crore for the quarter ended December 31, 2014 on lower prices of sugar, chloro-vinyl and cement.
Its net profit stood at Rs 44.3 crore in the year-ago period, DCM Shriram said in a statement.
Income from operations declined to Rs 1,197.1 crore during the third quarter of this fiscal from Rs 1,452.2 crore in the corresponding period of the previous year.
DCM Shriram is engaged in various businesses including sugar, fertilisers, bioseeds, chloro-vinyl and cement.
Commenting on the performance, the company's Chairman & Senior Managing Director Ajay Shriram and Vice Chairman & Managing Director Vikram Shriram said: "The company witnessed a challenging operating environment in Q3 FY'15 with sharp reduction in prices of chlor-alkali, PVC, cement and sugar."
The prices have seen some stability in January at the reduced levels, they added. "Crushing for sugar season 2014-15 has started satisfactorily after UP government announced a more reasonable cane pricing policy.
"We expect the same would be implemented in the right spirit going forward. There is however an urgent need for policy measures to arrest the downward movement in sugar prices," Shriram said.
The company said it is buoyant about the performance of bioseed business in India.
"Bioseed overseas business is expected to take couple of years to achieve sustainable growth. We are confident of growth of this business given the strong research program and healthy pipeline of products," it said. The farm solutions and fenesta businesses continued to perform satisfactorily.
"Our balance sheet is strong and can comfortably handle cyclicality in our businesses. Our capital expenditure programs are on track and will add value to the businesses going forward," Shriram said.
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