Agri-input firm DCM Shriram Ltd reported a 34 per cent increase in net profit to Rs 167 crore for the quarter ended June.
Its net profit stood at Rs 124 crore in the year-ago period.
Net revenues fell by 19 per cent to Rs 1,442 crore in the first quarter of this fiscal from Rs 1,789 crore in the corresponding period of the previous year.
Net revenues were lower at Rs 1,442 crore against Rs 1,789 crore last year due to suspension of trading in DAP/MOP fertilisers.
"Lower volumes of hybrid seeds (primarily BT cotton) also contributed to decline in revenue," the company said in a statement.
Net debt stood at Rs 1,071 crore as on June 30, 2016 as against Rs 690 crore a year-ago. Increase in net debt was on account of the ongoing expansion projects.
"The company delivered a healthy performance during Q1. All businesses, except farm solutions and bioseed, recorded better performance," company's Chairman and Senior MD Ajay Shriram and Vice Chairman and MD Vikram Shriram said in a statement.
Chloro vinyl businesses continue to deliver improved performance as a consequence of the company's efforts to strengthen cost competitiveness and grow volumes, the statement added.
Lower input prices also contributed to better performance.
"Our position will further improve post completion of ongoing capacity expansion and efficiency improvement projects in the chlor-alkali business.
"We have taken up a project to further enhance chlor-alkali capacity (liquid and flakes) at Kota at an investment of Rs 97 crore. This would be operational in Q3'18 and will provide further growth to this business," they said.
Sugar business' earnings recovered against last year driven by improvement in the margins.
"We are investing on value addition to the by-products and to increase cane availability to further strengthen this business," Shriram said.
Farm solutions and bioseeds businesses were adversely impacted due to delay in onset of monsoons, weak farmer economics and tight funds availability.
The company is confident of delivering healthy growth in the medium term led by expanded capacity and improved cost structure in the chemicals business, higher returns from value addition to sugar by-products and targeted growth in the bioseed and farm solutions businesses, it added.
