DCM Shriram declares 290% dividend, revenue surges 19%YoY in Q3

Today the company said in a stock exchange filing that “the Board of Directors declared 2nd interim dividend of 290% i.e. ₹5.80 per equity share of face value of ₹2 each for the financial year 2022-23, which will be paid or dispatched to all concerned on or before 18.02.2023.”

For the purpose of 2nd interim dividend 2022-23, the record date has been fixed as 1.2.2023. In comparison to the ₹2,730 Cr reported in Q3FY22, DCM Shriram recorded a net revenue of ₹3,236 Cr in Q3FY23, a growth of 19% YoY. The company reported a net profit of ₹342 Cr in Q3FY23 compared to ₹350 Cr reported in the year-ago quarter, representing a YoY fall of 2%. The company reported a surplus net of debt as of 31st December 2022 of ₹101 Cr vs net debt of ₹4 Cr as of 31st March 2022. ROCE for the period reached 34%.

Commenting on the performance for the quarter and period ending December 2022, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said “We are glad to report another consistent quarter of robust performance with positive / stable outlook across all the businesses. The operating environment is very challenging globally. Russia-Ukraine conflict does not seem to be concluding, Covid fears are back, there are risks of recession, the inflation seems to have peaked however the monetary tightening is expected to continue albeit at a lower pace. India is better placed in terms of the growth story and so are each of our diversified businesses.”

“The Chloro-vinyl business is delivering reasonable returns although they have come off their all time highs. In Chlor-alkali the product prices are off-their historic peak, the input costs continue to be elevated driven by energy prices. The margins for the Vinyl business were under pressure during the quarter, owing to reduced global demand and increased supply, the scenario is now improving. Captive energy costs continue to be high will improve in the coming quarters with commissioning of efficient 120MW power plant and 50MW green power project for Bharuch. Expansion projects in Chemical Business are on track although the timelines are stiff given the supply side constraints,” they further added.

“Sugar business continues to operate in a favorable policy environment. However, to meet the Ethanol blending program more policy measures are required, especially for the state of UP. Our mills have started crushing in this quarter and is witnessing a better crop. Capacity enhancements in sugar & distillery are commissioned except grain attachment which is likely to be operational in this quarter. Fenesta & Shriram Farm Solution businesses continued to follow the growth trajectory and have delivered promising results. Our Company is making conscious efforts towards sustainability through adding green power, circular economy and resource conservation. Some such measures are already underway and more are being planned Our balance sheet & cash flows continue to be healthy and we are actively looking for more avenues for growth,” they said.

The shares of DCM Shriram closed today at ₹892.50 apiece level on the NSE, down by 0.30% from the previous close of ₹895.20. The stock recorded a total volume of 177,096 shares compared to the 20-Day average volume of 20,692 shares.