DCM Shriram Consolidated Ltd (DSCL) has reported a 73% increase in its consolidated net profit at Rs 49.5 crore for the quarter ended March, 2012, on the back of better sales in its various businesses such as sugar, fertiliser, bioseeds and chloro-vinyl.
The diversified major had posted a net profit of Rs 28.6 crore in the year ago period.
DSCL's consolidated total income grew by 21% at Rs 1,337 crore in the fourth quarter of 2011-12 fiscal as against Rs 1,106 crore in the corresponding period of previous year, a company statement said.
The company said the rise in revenue was driven by growth in bioseed (19%), sugar (16.5%), chloro-vinyl (13%) businesses and higher MOP (Muriate of Potash) sales.
During 2011-12 fiscal, DSCL's net profit stood at Rs 11.9 crore as compared with a net loss of Rs 14.3 crore in the previous fiscal.
Revenues were up by 21% at Rs 5,039 crore in 2011-12 against Rs 4,151 crore in the previous year.
Commenting on the January-March quarter results, DSCL Chairman and Senior Managing Director Ajay Shriram and Vice-Chairman and Managing Director Vikram Shriram said: "Chloro-vinyl segment improved performance with several initiatives to contain the impact of sharp increases in raw material and coal prices".
"Firm caustic soda and carbide prices led to better margins in the business. Continuously rising coal costs is a major challenge for this business which will require improvement in product prices to sustain margins," they added.
The agri-businesses, which includes bioseeds and farm solutions, continue to hold strong promise and deliver stable earnings growth, the top officials said, while expecting the trend to continue in the coming year.
"The sugar business has achieved 30% increase in sugar production with higher cane crush and higher recoveries. This has also enabled higher power co-generation," they said.
The company would focus on further enhancing capacity utilisation and sugar recovery to achieve competitive cost structure.
