DCM Shriram Limited has posted net profit of Rs. 186.67 crores for the quarter ended March 31, 2023 as against net profit of Rs.401.19 crores for the quarter ended March 31, 2022. 

The company has reported total income of Rs. 2874.44 crores during the period ended March 31, 2023 as compared to Rs.2901.64 crores during the period ended March 31, 2022.

The drop in revenue and profit is due to the lower product price of Chloro-Vinyl, chemicals and high energy costs. However, DCM Shriram’s sugar business and Fenesta witnessed a jump of 24% and 13% respectively due to higher sugar and ethanol volumes.

For the Financial Year ended March 31, 2023, DCM Shriram has posted net profit of Rs.910.84 crores as against net profit of Rs.1067.35 crores for the Financial Year ended March 31, 2022.

The company has reported total income of Rs.12199.19 crores during the Financial Year ended March 31, 2023 as compared to Rs.9941.31 crores during the Financial Year ended March 31, 2022.

Commenting on the performance for the quarter and period ending March 2023, in a joint statement, Ajay Shriram, Chairman & Senior Managing Director, and 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.

“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.

“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.”