DCM Shriram is currently ruling among the top three gainers on the BSE; opening around 0.5% higher at Rs.1051.60, it soon rose to Rs.1144, up more than 9%. Its 52-week high is at Rs.1210.

The company had an analysts meet yesterday and this has spread some optimism regarding the future.

The company, for Q2FY25, reported a 95% (YoY) rise in net profit at Rs.63 crore on a 11% rise in revenue from operations at Rs.3130 crore.

Looking ahead, more than its sugar business, it expects the chloro-vinyl segment to continue doing better on account of lower cost on energy due to the commissioning of its 120 MW cola-based power plant going on stream in Q1. Plus the raw material costs were low and this is expected to continue. The company expects the chloro-vinyl segment to continue doing well in this entire fiscal and expects profitability to be 10-15% higher in FY26.

But on the sugar and ethanol front, which remains in a loss, and the company blamed it on the higher cost of production while selling price did not keep pace. Typically, Q3 and Q4 are seasonally the best for sugar and the company hopes things will get better in H2FY25 and add on to the profits.