DCM Shriram net profit up by 73% at Rs 49.5 crore

NEW DELHI: DCM Shriram Consolidated Ltd (DSCL) has reported a 73 per cent increase in its consolidated net profit at Rs 49.5 crore for the quarter ended March on the back of better sales in its various businesses such as sugar, fertiliser, bioseeds and chloro-vinyl.

The company had posted a net profit of Rs 28.6 crore in the year-ago period, DSCL said in a statement. DSCL's consolidated total income grew by 21 per cent at Rs 1,337 crore in the fourth quarter of 2011-12 fiscal as against Rs 1,106 crore in the corresponding period of previous year.

The company said that the increase in revenue was driven by growth in bioseed (19 per cent), sugar (16.5 per cent), chloro-vinyl (13 per cent) businesses and higher MOP (Muriate of Potash) sales. During 2011-12 fiscal, DSCL's consolidated net profit stood at Rs 11.9 crore compared with a net loss of Rs 14.3 crore in the previous financial year. The revenue was up by 21 per cent at Rs 5,039 crore in 2011-12 against Rs 4,151 crore in the previous fiscal.

Commenting on the Q4 result, DSCL Chairman and Senior Managing Director Ajay Shriram and Vice-Chairman and Managing Director Vikram Shriram said: "Chloro-vinyl segment improved performance with several initiatives to contain the impact of sharp increases in raw material and coal prices".

"Firm caustic soda and carbide prices led to better margins in the business. Continuously rising coal costs is a major challenge for this business which will require improvement in product prices to sustain margins," they added. The agri-businesses, which included bioseeds and farm solutions, continue to hold strong promise and deliver stable earnings growth, Shriram said, and expected taht the trend should continue in the coming year.

"The sugar business has achieved 30 per cent increase in sugar production with higher cane crush and higher recoveries. This has also enabled higher power co-generation," they said.

The company would foucs on further enhancing capacity utilisations and sugar recovery to achieve competitive cost structure.