DCM Shriram Industries Ltd., a chemicals manufacturer based in India announced its results for the first quarter ended June 30, 2020.
Q1 Results- QoQ
The company’s net profit dropped 80.4% to Rs 5.09 crores ($0.68 miilion) for the period ended June 30, 2020 as against net profit of Rs 25.98 crores ($3.5 miilion) for the previous quarter.
Net sales declined 14.2% to Rs 404.31 crores ($54.1 miilion) during the period ended June 30, 2020 as com-pared to Rs 471.47 crores ($63.1 miilion) during the previous quarter.
Q1 Results- YoY
The company’s net profit declined 70% to Rs 5.09 crores ($0.68 miilion) for the period ended June 30, 2020 as against net profit of Rs 16.9 crores ($2.3 million) for the prior-year quarter.
Net sales grew 0.4% to Rs 404.31 crores ($54.1 miilion) during the period ended June 30, 2020 as com-pared to Rs 402.54 crores ($53.8 miilion) during the prior-year quarter.
On the impact of the pandemic on its business, DCM Shriram Industries Ltd in its stock exchange filing said, “During the lockdown period, the Company’s Sugar and Chemical Segments continued their operations. The operations of lndustrial Fibre Segment, which remained shut for some time due to lock down, resumed but continue to be affected. However, the Company expects a gradual recovery and improvement in this segment’s operations. The Chemical Segment has performed well.”
“Based on the current estimates, the Company does not foresee any material impact in the medium to long term on the business, its liquidity and ability to service its debt or other obligations and expects to recover the carrying value of its assets. The Company would closely monitor such developments in future economic conditions and consider their impact on the financial results of the relevent periods.”