DCW Ltd., a chlor-alkali manufacturer based in India announced its results for the first quarter ended June 30, 2021.
Q1 Results- QoQ
The company’s net profit increased 107% to Rs 13.37 crores ($1.8 million) for the period ended June 30, 2021 as against net profit of Rs 6.46 crores ($0.87 million) for the previous quarter.
Net sales grew 13% to Rs 522.74 crores ($70.3 million) during the period ended June 30, 2021 as compared to Rs 462.95 crores ($62.3 million) during the previous quarter.
Q1 Results- YoY
The company’s net profit grew 236.1% to Rs 13.37 crores ($1.8 million) for the period ended June 30, 2021 as against net loss of Rs 9.83 crores ($1.3 million) for the prior-year quarter.
Net sales increased 83.2% to Rs 522.74 crores ($70.3 million) during the period ended June 30, 2021 as compared to Rs 285.41 crores ($38.4 million) during the prior-year quarter.
DCW is engaged in the business of manufacture and selling of Caustic Soda, Liquid Chlorine and Chlorine based products, PVC and C-PVC.
The company reported an all-around improvement in Revenue on YoY basis despite COVID-related lockdowns/restrictions. It reported an overall improvement in its operational performance with higher capacity utilisation across segments.
- C-PVC: This segment remains to be a consistent driver for the company. The revenue increased by 63% YoY and stood at INR 43.4 crores ($5.8 million) in Q1FY22 as against INR 266 crores ($35.8 million) in Q1FY21. The growth was primarily driven by higher capacity utilization YoY.
- SIOP: Consistent efforts have led to a positive turnaround of this division. Capacity utilization increased 2x YoY which has resulted in revenue growth of 83 % YoY for Q1FY22.
- PVC: This segment volume increased by 70% YoY. It reported a revenue of INR 246.6 crores ($33.2 million) in Q1FY22; ~2x growth YoY. Higher PVC prices coupled with higher capacity utilization has led to robust performance for this division YoY. This segment constituted 47% of total revenue for Q1FY22
Mr. Vivek Jain, Managing Director, DCW Ltd., said, “DCW has commenced the new fiscal year on an encouraging note, despite severe disruptions witnessed in Q1 due to localized restrictions and lockdowns on account of the second wave of the pandemic. The second wave of Covid brought new challenges, especially on the demand front from rural areas. The company worked on these challenges and mitigated them to large extent by increasing capacity utilisation across all its products.”
“The Specialty chemicals segment remains a stable revenue generator and shows tremendous potential going ahead. The SIOP division has been showing a promising turnaround and is likely to contribute meaningfully backed by higher capacity utilization and favourable market conditions in coming quarters.”