DCM Shriram Ltd., a chemicals manufacturer based in India announced its results for the second quarter ended September 30, 2020.
Q2 Results- QoQ
The company’s net profit grew 69% to Rs 118.37 crores ($16.1 million) for the period ended Septem-ber 30, 2020 as against net profit of Rs 70.10 crores ($9.5 million) for the previous quarter.
Net sales increased 6.5% to Rs 2064.61 crores ($280.1 million) during the period ended September 30, 2020 as compared to Rs 1938.44 crores ($263 million) during the previous quarter.
Q2 Results- YoY
The company’s net profit grew 0.5% to Rs 118.37 crores ($16.1 million) for the period ended Septem-ber 30, 2020 as against net profit of Rs 117.73 crores ($16 million) for the prior-year quarter.
Net sales increased 16% to Rs 2064.61 crores ($280.1 million) during the period ended September 30, 2020 as compared to Rs 1784.69 crores ($242.1 million) during the prior-year quarter.
Half-Year Results- YoY
The company’s net profit declined 44.2% to Rs 188.47 crores ($25.6 million) for the 6 months period ended September 30, 2020 as against net profit of Rs 337.69 crores ($45.8 million) for the prior-year 6 months period.
Net sales increased 8% to Rs 4003.05 crores ($543.1 million) during the 6 months period ended Septem-ber 30, 2020 as compared to Rs 3711.29 crores ($503.5 million) during the prior-year 6 months period.
“The operating as well as financial performance of the company have improved significantly over the previous quarter which was impacted by the effect of the COVID-19 pandemic,” Chairman and Senior Managing Director Ajay Shriram, and Vice-Chairman and Managing Director Vikram Shriram said in a joint statement.
They also added that although the operating challenges due to COVID-19 have reduced, the uncertainty of economic environment continues.
Investments as well as rationalisation over the past couple of years have strengthened the company’s businesses and helped in sustaining a reasonable performance in these challenging times, they added.
Ajay Shriram said the Chiaro-Vinyl businesses have witnessed a healthy increase in volumes since May and are now operating at reasonable levels.
The company has started implementation of a 120-megawatt coal-based power plant at Bharuch that will improve cost-competitiveness at the chemicals complex at Bharuch, he said.
That apart, the sugar business has increased the scale and forward integration over the past few years, while the agri input businesses have rationalised revenue verticals and improved product offerings, he added.
He also said, “Discontinuation of trading in bulk fertilisers and sale of international seeds business in Indonesia and Vietnam have helped in reducing losses and have improved the focus on core business.”
These steps have improved performance and augur well for consistent growth of these businesses. The company’s balance sheet as well as cash flows are healthy and enable it to continue to focus on building scale, integration and cost-competitiveness in the businesses, he added.