DCM Shriram Consolidated (DSCL) reported a 27 per cent drop in net profit for the December quarter on losses in its sugar business caused by high cane price and declining prices of the sweetener.
It posted net profit of ₹44.33 crore against ₹60.75 crore
Revenues for the quarter were higher by 8 per cent driven primarily by fertiliser, bio-seed and its chloro-vinyl business.
It recorded ₹1,452 crore revenue in the third quarter against ₹1342.80 crore in the corresponding period last year.
Interim dividend The DSCL board declared an interim dividend of 40 per cent or 80 paise on par value of ₹2 each. Revenues from sugar were lower 3.7 per cent at ₹337.9 crore, while the chloro-vinyl business was up 10 per cent at ₹330.4 crore.
The swing in sugar margins subdued the sugar earnings.
The sugar margins declined to a negative of ₹558 per quintal from ₹358 per quintal in December quarter of financial year 2012-13.
DSCL expects higher sugar recovery will help partially offset the impact and believes that the cane area would decline for the ensuing season.
Fertiliser revenues were up 65 per cent at ₹169.7 crore but the earnings were impacted by high levels of subsidy outstanding.
The delay in announcement of the new urea policy will increasingly lead to uncompensated cost increases.