DCM Shriram Consolidated Ltd has reported a 66 per cent rise in net profits for the fourth quarter of the current fiscal aided by higher realisations in its sugar and chloro-vinyl business.
The company reported a net profit of Rs 82.3 crore during the quarter on revenues of Rs 1,427 crore against a net of Rs 49.5 crore on revenue of Rs 1,337 crore in corresponding last year.
For the fiscal-ended March 2013, the company reported net profit of Rs 202.9 crore on revenues of Rs 5,539 crore, against a net of Rs 11.9 crore on revenue of Rs 5,039 crore in the previous year.
The company’s board recommended a final dividend of 40 per cent (Re 0.80 per equity share of Rs 2 each) for the fiscal 2013. Including the interim dividend of 40 per cent, the total dividend for the year will be Rs 1.60 per equity share of Rs 2 each.
Revenue from sugar business during the fiscal was up 48 per cent at Rs 1,345 crore driven by higher free sale volumes and realisations, while farm solutions grew by a fifth to Rs 2,268 crore. The chloro-vinyl business was up 15 per cent at Rs 1,162 crore.
Better margins in chloro-vinyl business, lower losses in Haryali and higher margins on sale of sugar stock of previous season resulted in a satisfactory performance, said Ajay Shriram, Chairman and Senior Managing Director.
Vikram Shriram, Vice-Chairman and Managing Director, said the company’s bioseed and farm solutions business was affected due to the difficult business environment including adverse weather conditions. He added that earnings from the sugar business will remain under pressure in the coming quarters due to high cane prices and softness in sugar price.
The company’s scrip ended one per cent higher at Rs 57.80 on the BSE on Thursday.