DCM Shriram shares were down 3.93 percent at Rs 868.5 at 9.30 am after the company’s June quarter net profit fell 78 percent to Rs 57 crore. Revenue also fell 2 percent to Rs 2,780 crore year-on-year (YoY).
Revenue from chemical business fell 40 percent YoY to Rs 536 crore in Q1FY24. The chemical business was down on excessive global supply of chemicals by USA, Europe, China, and India; and a weak demand to balance it.
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Revenue from vinyl business fell 32 percent YoY to Rs 164 crore for the quarter. DCM Shriram’s revenue from vinyl business fell on account of China’s aggressive pricing policy. China continues to offer products at low prices and the Indian government’s laxity to tax such products affected domestic vinyl produce more, said the company in its investor presentation.
“Our Chemicals and Vinyl businesses are facing challenges as a result of global disruptions in demand, supply and costs,” said the management in its Q1FY24 investor presentation. The management further said that they’re taking measures in terms of scale, costs, and integration that will help the company weather these tough times.
Revenue from sugar business was up 35 percent YoY to Rs 968 crore in the April-to-June quarter. The company’s sugar numbers were strong on elevated global sugar prices and increased exports.
DCM Shriram is a diversified and an integrated business entity, with extensive and growing presence across the Agri-Rural value chain and Chloro-Vinyl industry.
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