DCM Shriram Ltd

Thanks to the robust performance of its sugar sector, DCM Shriram did very well for Q1FY18. Total revenue rose 36% (YoY) at Rs.2052 crore. This was led by a 116% increase in sugar volumes while chemicals sales volume rose 42% on account of capacity expansion at Bharuch last year. Net profit rose by a good 40% at Rs.233 crore.

EBITDA for the quarter was up 37% at Rs.342 crore and this can be attributed to the 205% increase in sugar profits due to higher sales volumes. Chemicals profits rose 37% on the back of increased sales volumes and lower costs attributable to adoption of latest technology in all production facilities. EBITDA margins increased marginally from 16.5% to 16.7%.

Its interest costs during the quarter rose from Rs.20 crore to Rs.24 crore and this was after commissioning of the investment program of Rs.700 crore.  Its Gross Debt stood at Rs.817 crore while Net Debt was at Rs. 331 crore as on June 30, 2017.

Projects s involving investments of about Rs.350 crore are currently under implementation: - 150 KLD Molasses based distillery at Sugar unit; commissioning expected by Jan’18. Its 80TPD Chlor Alkali expansion is on at Kota and commissioning is expected by Jun’18. Its 60TPD Anhydrous Aluminium chloride plant at Bharuch is expected to go on stream by Jun’18.