DCM Shriram at new high
DCM Shriram has hit a new 52-week high today at Rs.595. Its lifetime high stands at Rs.1076.40, hit on 6th Oct, 2005.
The company declared excellent numbers for Q2FY18 with net profit surging 88% (YoY) to Rs.172 crore on a 17.5% jump in revenue at Rs.1605 crore. EBITDA showed a smart 138% rise at Rs.291 crore and margins catapulted from 8.9% to 18.1%. The higher revenue coupled with lower costs helped this earning.
The main money earner this quarter was the chloro-vinyl business which reported a 47% jump in topline. The company’s expansion at its Bharuch plant helped as it led to 24% rise in volumes. Prices have got better and it led to capacity utilization of 90%.
The company is now setting up a 150 KLD distillery, setting up an aluminum chloride facility and is expanding its chlor-alkali process. All this at a cost of Rs.350 crore. This is expected to be commissioned by Q2FY19.