DCM Shriram fourth quarter net up 64%

DCM Shriram Consolidated Ltd (DSCL) recorded a 64 per cent increase in its net profit to Rs 39.44 crore in the fourth quarter ended March 31, 2005, compared with the same period last year.

Its sales in Q4 grew 59 per cent to Rs 461.35 crore. DSCL, which has interests in energy, sugar, chemicals and agricultural inputs, witnessed a 29 per cent growth in its revenues in FY 2004-05 to Rs 1,800 crore, while its net profit for the year rose by 36 per cent to Rs 104.43 crore.

DSCL's board has also recommended a total dividend of 80 per cent for the last fiscal amounting to a pay-out of Rs 15.14 crore.

The company claimed that healthy operations helped it mitigate cost inflation during the year. DSCL's revenues were also boosted in FY2004-05 compared to the previous year.

Because of the merger of Shriram Polytech Ltd with the company since October 1, 2004.

"It is particularly encouraging that our strategy of optimising value contribution through integration and creating long-term competitive businesses has delivered significant growth in profits. All our operations are witnessing improved business conditions and offer attractive opportunity for growth," said Ajay Shriram, chairman and senior managing director.

In FY2004-05, DSCL claimed that it commenced the expanded and upgraded chlor-alkali operations at Kota ahead of schedule. The company had converted its mercury cell based chlor-alkali plant of 139 tonne per day (TPD) to a more cost-efficient and environment-friendly 250 TPD membrane cell based plant.

The expanded and upgraded capacity became commercially operational during Q4 FY 2005. With this expansion, DSCL's chlor-alkali capacity at its Kota and Bharuch plants combined has increased from 111,000 TPA to 150,000 TPA.