Diversified group DCM Shriram has reported a 34 per cent increase in net profit to Rs 167 crore in the first quarter (Q1) of financial year 2016-17 compared with Rs 124 crore in the same period last year.
Net revenues in the first quarter of the current fiscal was, however, was 19.4 per cent lower at Rs 1,442 crore compared with Rs 1,789 crore in the first quarter last year due to suspension of trading in DAP/MOP fertilisers, according to an official release issued by the company. Lower volumes of hybrid seeds (primarily BT cotton) also contributed to decline in revenue.
“The company delivered a healthy performance during Q1. All businesses, except farm solutions and bioseed, recorded better performance,” said Ajay Shriram, Chairman & Senior Managing Director, DCM Shriram.
The company’s chloro vinyl businesses’ continued to deliver improved performance partly due to lower input prices. The company hopes to improve performance in the area post completion of ongoing capacity expansion and efficiency improvement projects in the chlor-alkali business to be operational in the third quarter this fiscal.
Sugar business’ earnings recovered vis-à- vis last year driven by improvement in the margins, the release said. “We are investing on value addition to the by-products and to increase cane availability to further strengthen this business,” Shriram said.