DCM Shriram Q4 PAT down 53%, revenue slips 3% YoY, Board declares 180% dividend

The Board of Directors have “recommended final dividend of 180% i.e. Rs. 3.60 per Equity Share of face value of Rs. 2/- each for the financial year ended 31.3.2023 and therefore, if the same is declared by shareholders at the forthcoming AGM, the total dividend for the Financial Year 2022-23 aggregates to 700% i.e. Rs.14/- per equity share of Rs. 2/- each (including interim dividends @ 230% i.e. Rs.4.60 per equity share of Rs. 2/- and @ 290% i.e. Rs.5.80/- per equity share of Rs. 2/- each declared in the October, 2022 and January, 2023 respectively). The above dividend, if declared by the Shareholders at the ensuing Annual General Meeting (AGM), will be credited/dispatched within 30 days from the date of AGM.”

The 34th AGM of the company is scheduled to be held on 25th July 2023, according to the company.

During Q4FY23, the company reported revenue from operations of ₹2,720 Cr, down by 3% YoY from ₹2,796 Cr during Q4FY22. The company said its net profit reached ₹187 Cr during the quarter under review down by 53% YoY from ₹401 Cr in the year-ago quarter. The company’s PBIT stood at ₹301 Cr during Q4FY23, down by 50% YoY from ₹602 Cr during Q4FY22. 

Commenting on the performance for the quarter and period ending March 2023, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said “The world economy is still recovering from the unprecedented disruptions in the last three years. It will take time for world trade to adapt to the new normal. Growth is expected to slow down especially in the advanced economies. Recession concerns have gained prominence, while worries about stubbornly high inflation persist. India continues to be in a sweet spot and will see healthy growth and so will our businesses.”

“The chloro-vinyl business delivered reasonable returns although they have come off their all-time highs witnessed last year. Though the output prices are expected to remain under pressure for a couple of quarters, the margins should be reasonable considering the captive energy costs likely to reduce in the coming quarters in view of reduced imported coal prices and commissioning of an efficient 120MW power plant and 50MW green power project for Bharuch by second quarter. In the coming year, Chemical business will usher a new era of growth with all the Chemical projects being commissioned. These projects are slightly delayed by a quarter given the supply constraints,” said Ajay Shriram.

“Sugar business continues to be stable though sugar prices have not yet increased to levels to compensate for the increase in sugarcane prices last year. India’s crush and sugar production is expected to be much lower than last year and should support higher sugar prices domestically & globally. Our Sugarcane crush as well as recovery this season has been better than previous season. 120 KLD distillery is operational on molasses feedstock, the grain attachment is ready and awaiting regulatory approval, which is expected in Q1FY’24,” he further added.

“Fenesta & Shriram Farm Solution businesses continue to grow at a good rate. Sustainability measures in the areas of green power, circular economy and resource conservation continue to be an integral part of all our businesses. Our balance sheet & cash flows are healthy and will weather economic uncertainties. We are actively looking for more avenues at growth,” said Ajay Shriram.

The shares of Dcm Shriram closed on the BSE at ₹819.10 apiece level, up by 0.18% from the previous close of ₹817.60.