DCM Shriram spurts 10% on three-fold jump in Q4 profit

NEW DELHI: Shares of DCM Shriram Industries shot up over 10 per cent in Tuesday’s trade after the diversified business group reported nearly three-fold jump in consolidated net profit for March quarter at Rs 156.35 crore thanks to better performance of its sugar, chemicals and plastic businesses.

The company had reported a net profit of Rs 54.53 crore for the corresponding quarter last year.



Following the earnings numbers, the stock surged 10.14 per cent to hit a 52-week high of Rs 392 on BSE.

“Sugar operations have improved in SY17 with 45 per cent growth in sugar production and 62 per cent rise in power export. Commissioning of distillery will provide further impetus to the business. We are further strengthening our cane development efforts to achieve higher volumes on a sustained basis,” said Ajay Shriram, Chairman & Senior Managing Director at DCM Shriram.

“The expanded Chlor-Alkali plant at Bharuch has stabilised. Capacity utilisation is constrained due to low chlorine demand. We are working on expanding chlorine sales and the overall capacity utilisation. Better monsoon last year along with expectation of a normal monsoon this year should augur well for our agri-input businesses in India. We are taking steps to turn around the bioseed International business,” Shriram said.

Shriram said his company was looking forward to further strengthening its businesses over the medium term.