DCM Shriram, which has interests in textiles, chloro-vinyl products, chemicals, cement, bio-seeds, alcohol and sugar, on Wednesday reported a 38 per cent decline in net profit for the quarter ending December 31 at Rs.27.4 crore as against Rs.44.3 crore in the same quarter last year on account of price declines of chloro-vinyl products and lower realisation from sugar.
Net profit for nine months of FY15 stood at Rs. 251 crore, up from Rs. 160 crore over the corresponding period the previous fiscal. Net revenues, which stood at Rs. 1,197.1 crore as against Rs. 1,452.2 crore in Q3 FY15, had fallen on the back of lower volumes in bulk fertiliser output while bio-seed sales had faced challenges abroad, the company stated in a release.
A joint statement was issued by Chairman and Senior Managing Director (MD), Ajay Shriram, and Vikram Shriram, DCM’s Vice Chairman and MD. “The Company witnessed a challenging operating environment in Q3 ’15 with sharp reduction in prices of chlor-alkali, PVC, cement and sugar. The prices have seen some stability in Jan 15 at the reduced,” it read.
“Our balance sheet is strong and can comfortably handle cyclicality in our businesses. Our capital expenditure programs are on track and will add value to the businesses going forward,” the statement added.
DCM stock traded up 1.25 per cent at Rs. 93.15 on the BSE on Tuesday.