DCM Shriram Q1 net profit slumps 31% to Rs 123 crore

NEW DELHI: Diversified group DCM Shriram today reported a 30.5 per cent decline in net profit at Rs 123 crore for the June quarter of the current fiscal.

The company had reported a net profit of Rs 177 crore in the same quarter a year ago.

Total income of the company increased to Rs 1,806 crore in the quarter under review, from Rs 1,704.42 crore a year earlier, DCM Shriram said in a statement.

The increase in total income was on account of higher volumes of bulk fertilisers during the quarter, it said.

High fertiliser subsidy outstanding of Rs 555 crore and sugar inventory of Rs 263 crore led to higher working capital requirements, it said.

Chairman Ajay Shriram said: "The company has performed satisfactorily, given a challenging business environment, a result of our diversified and integrated business portfolio and comfortable debt levels."

The unfavorable monsoon pattern and financial stress in the agriculture sector have adversely affected demand for agri inputs, leading to lower revenues of bioseed and value- added products, he added.