DCM Shriram Ltd, which is mainly into chemical, sugar and fertiliser businesses, on Monday reported a 22 per cent fall in its consolidated net profit to Rs 175.43 crore for the December 2019 quarter, on higher expenses and provision for losses in sale of foreign subsidiaries.
The company's net profit stood at Rs 225.65 crore in the year-ago quarter, the company said in a regulatory filing.
Total income, however, rose to Rs 2,229.49 crore during the third quarter of this fiscal year from Rs 2,135.2 crore in the corresponding period of the previous year.
DCM Shriram said the board has "approved the proposed sale of entire equity capital and the underlying business including all assets and liabilities thereof on a going concern and 'as is where is' basis of the step-down subsidiaries in Indonesia and Vietnam by Bioseed Holdings PTE Ltd, a subsidiary of the company in Singapore."
The agreements to sell have been entered into with the buyer and, pursuant to that, an amount of USD 5,20,000 out of the total net consideration of USD 9,50,000 has been received as earnest money.
The balance amount will be received at the time of entering into share purchase agreement which is expected to be completed by March 2020, it added.
"The buyer is Prasad Seeds Global PTE Ltd, Singapore," the company said.
The company has made a provision of Rs 14.62 crore for loss of sale in foreign subsidiaries, dragging its profit for the quarter ended December.
DCM Shriram also declared second interim dividend of 210 per cent i.e Rs 4.20 per equity share of face value of Rs 2 each for the financial year 2019-20.
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