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DCM Shriram Ltd on Thursday reported 48% increase in its net profit at Rs 92 crore for the quarter ended September 2016 on improved sugar prices and better performance of bioseeds business.
Its net profit stood at Rs 62 crore in the year-ago period, the company said in a statement.
Total revenue, however, fell by 2.6% to Rs 1,446 crore in the second quarter of this fiscal from Rs 1,484 crore in the corresponding period of the previous year.
The company attributed the Q2 earnings growth to improvement in sugar prices, better performance of bioseed business, and reduction in financial costs.
DCM Shriram is engaged in sugar, fertiliser, seeds, chloro vinyl, and cement businesses among others.
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Commenting on the performance, company's Chairman & Senior Managing Director Ajay Shriram and Vice Chairman & Managing Director Vikram Shriram said,"the company delivered encouraging performance in the second quarter. The steps taken over the last couple of years to improve cost structures and expand volumes in our key businesses have contributed to the sustained improvement in performance."
The capacity expansion and technology up-gradation project at Bharuch, commissioned in phases since June 2016, is expected to be fully commissioned in November 2016.
The Sugar co-gen capacity expansion/efficiency improvement project will also be commissioned in November 2016. Both these projects will contribute to improved performance going forward.
"We have also taken up the following projects to be completed by Q4 of FY'18. Chlor Alkali capacity expansion/ upgradation at Kota (Investment- Rs 97.3 crore); 150 kilo litres per day distillery at DSCL Sugar - Hariawan (Investment- Rs 185 crore); expansion of windows fabrication capacity at Fenesta (Investment - Rs 18.5 crores).
"These projects will improve our competitiveness and provide sustained growth over the next few years," they added.
