New Delhi: Diversified business group DCM Shriram on Monday reported more than two-fold jump in consolidated net profit at Rs 156.35 crore for the fourth quarter of 2016- 17 year on better performance of its sugar, chemical and plastic businesses.
Its net profit stood at Rs 54.53 crore in the year-ago period, the company said in a BSE filing.
Total revenue rose by 23.73% to Rs 1,722.96 crore in the quarter ended on March 31, 2017, from Rs 1,392.44 crore in the same period last year.
The company’s expenses, however, remained higher at Rs 1,540.33 crore as against 1,300.65 crore in the said period. For full FY2016-17, DCM Shriram’s consolidated net profit jumped by close to 83% to Rs 551.68 crore compared to Rs 301.75 crore in 2015-16.
Total income rose to Rs 6,163.96 crore from Rs 6,070.92 crore in the said period, the filing added.
“Healthy earnings growth during the year was a result of robust performance of the sugar, chemical and plastic businesses,” DCM Shriram chairman & senior managing director Ajay Shriram said.
The revenue from sugar operations increased to Rs551.99 crore in the fourth quarter of 2016-17 from Rs329.79 crore in the year-ago period.
“Commissioning of distillery will provide further impetus to the business. We are strengthening our cane development efforts further to achieve higher volumes on sustained basis,” company vice chairman & managing director Vikram Shriram said. On its chemical business, the company said, “The expanded Chlor-Alkali plant at Bharuch has stabilised. Capacity utilisation is constrained due to low chlorine demand. We are working on expanding chlorine sales and the overall capacity utilisation.”
Better monsoons last year along with expectation of a normal monsoon this year should augur well for sale of agri- input businesses in India.
“We are taking steps to turn-around Bioseed International business,” the company said. “The cash generation is robust, balance sheet is strong and business model has strengthened. We look forward to further strengthen our businesses and invest in growth of the company over the medium term,” it added. DCM Shriram is engaged in sugar, fertiliser, seeds, chloro vinyl and cement businesses, among others.