DCM Shriram Ltd has registered a marginal decline in Q3FY2023 consolidated net profit at Rs 342.09 crore compared to Rs 349.57 crore during the corresponding period last fiscal. Meanwhile, net revenues (net of excise duty) up 19% YoY at Rs.3,236 crore for Q3 FY23.

While revenue for Chloro-vinyl segment down 8% at Rs 960 crore, chemicals business up 3% YoY at Rs 757 crore driven by prices. ECU realization for Q3 FY23 up 2% YoY. Utilization levels were at 86%. Exports were 14K MT ~10% of total sales. Flakes value add up by ~ Rs/MT 2,000.

During the quarter, vinyl business down 33% YoY at Rs 204 cr driven by lower prices. PVC prices were down 42% in line with international prices on account of recession fears, presently above Rs/MT 90,000 levels; Carbide prices were also down 32% YoY.

Commenting on the performance for the quarter and period ending December 2022, in a joint statement, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said: “We are glad to report another consistent quarter of robust performance with positive / stable outlook across all the businesses. The operating environment is very challenging globally. Russia-Ukraine conflict does not seem to be concluding, Covid fears are back, there are risks of recession, the inflation seems to have peaked however the monetary tightening is expected to continue albeit at a lower pace. India is better placed in terms of the growth story and so are each of our diversified businesses.

“The Chloro-vinyl business is delivering reasonable returns although they have come off their all time highs. In Chlor-alkali the product prices are off-their historic peak, the input costs continue to be elevated driven by energy prices. The margins for the Vinyl business were under pressure during the quarter, owing to reduced global demand and increased supply, the scenario is now improving. Captive energy costs continue to be high will improve in the coming quarters with commissioning of efficient 120MW power plant and 50MW green power project for Bharuch. Expansion projects in Chemical Business are on track although the timelines are stiff given the supply side constraints.

“Sugar business continues to operate in a favorable policy environment. However, to meet the Ethanol blending program more policy measures are required, especially for the state of UP. Our mills have started crushing in this quarter and is witnessing a better crop. Capacity enhancements in sugar & distillery are commissioned except grain attachment which is likely to be operational in this quarter.

“Fenesta & Shriram Farm Solution businesses continued to follow the growth trajectory and have delivered promising results.

“Our Company is making conscious efforts towards sustainability through adding green power, circular economy and resource conservation. Some such measures are already underway and more are being planned

“Our balance sheet & cash flows continue to be healthy and we are actively looking for more avenues for growth.”