DCM Shriram Ltd. announces Q1 FY23 Financial Results
Net Revenues for Q1 FY23 up 46% YoY at Rs/cr 2,851*.
o Chloro-Vinyl up 90% at Rs/cr 1,140 driven by prices & volumes.
o Sugar up 26%, at Rs/cr 710* driven by higher volumes and prices.
o Fenesta up 54% at Rs/cr 167 led by volumes and prices in both project & retail segment
PBDIT for Q1 FY23 up 55% YoY at Rs/cr 464.
o Chemical up 227% at Rs/cr 368 due to better margins & volumes
o Fenesta up 168% at Rs/cr 32 led by higher volumes & better margins in retail segment
o Sugar down 49% at Rs/cr 22 led by lower margins in sugar due to increased cost of
production consequents to increase in SAP & lower recoveries in last season.
Projects under implementation in Chemicals and Sugar, aggregating Rs/cr 3,500
approximately, are progressing well and scheduled to be commissioned in next 12 months
ROCE is higher at 37% vs 23% in June’21
Q1 FY23 Highlights
Q1 FY23 Q1 FY22 Change (%)
Net revenue from operations* 2,851 1,957 46%
PBDIT 464 300 55%
PBIT 403 243 66%
Finance Cost** 17 27 -39%
PAT 254 158 61%
Key Developments – Q1 FY23
1. Net Revenues (net of excise duty on sale of country liquor) up 46% YoY at Rs/Cr 2,851
Chemicals revenues up 117% at Rs/Cr 896 driven by prices & volumes.
o ECU prices up 103%. Prices were up across the product categories.
o Caustic sales volumes up 13% as Q1 FY22 was impacted by lower demand due to
Covid 19 impact.
Vinyl business revenues up 31% at Rs/Cr 243 driven by volumes and prices.
o Carbide prices up 18% and PVC prices up 3%.
o Carbide volumes up 135%. PVC volumes down 13% YoY. Volumes in Q1 FY22 were
affected due to second wave of Covid 19. Volumes had an impact of Rs/Cr 24 on the
Fertilizer revenues up 46% at Rs/Cr 321 resulting from higher gas prices which is a pass
through. Volumes lower 15%.
Fenesta revenues up 54% at Rs/Cr 167 led by volumes and prices in both project & retail
segment. Order booking up 113%.
Shriram Farm Solutions (SFS) revenues stable at Rs/Cr 218 vs 212 for Q1 FY22.
Overall Sugar business revenues (net of excise duty on country liquor sales) up 26% at
Rs/Cr 710 led by:
o Sugar volumes up 20% YoY, due to better releases and domestic sugar prices up 7%
o Distillery volumes up 12% YoY and ethanol prices also higher for current ethanol
Bioseed revenues up 9% YoY at Rs/Cr 205
o Revenue from India operations up 31% YoY led by Cotton in trade channel and Corn
in institutional channel
*Net of excise duty of Rs/Cr 120 and 51 for Q1 FY23 and Q1 FY22 respectively, on country liquor sales.
**Net Finance cost for Q1 FY23 at Rs/Cr –ve 1.4 vs 10.7 for Q1 FY22.
o Revenue from international operations down 48% YoY
2. PBDIT for Q1 FY23 up 55% YoY at Rs/Cr 464
Chemicals PBDIT at Rs/Cr 368, up 227% led by higher product prices and volumes.
Both power & salt prices continue to be high, which were more than offset by better
Fertilizer PBDIT at Rs/Cr –ve 17 vs 33 during Q1 FY22 driven by lower volumes and
planned shutdown impacting energy consumption & fixed expenses.
Fenesta PBDIT at Rs/Cr 32 up 168% led by higher volumes & better margins in retail
Shriram Farm Solutions PBDIT at Rs/Cr 18 up 13% YoY.
Overall Sugar PBDIT at Rs/Cr 22 down 49% on account of:
o Lower margins due to increased costs of sugar as a result of increase in SAP & lower
recoveries in last sugar season
o Higher sugar and ethanol prices partly offset cost pressures.
Bioseed PBDIT at Rs/Cr 20 vs 27 for Q1 FY22 impacted by lower volumes in
Vinyl PBDIT came in lower at Rs/Cr 70 down 22% YoY due to higher power & fuel costs.
3. PAT for Q1 FY23 at Rs/Cr 254 up 61% YoY.
4. Net Debt as on 30th June, 2022 is Rs/Cr 8 vs 32 as on 30th June, 2021. ROCE came in at
37% vs 23% for Q1 FY22 (based on TTM).
5. Sugar Season update
Last mill stopped crushing on 23rd April, 2022.
Cane crushed for SY22 is 549 lac qtls vs 553 lac qtls for SY21.
Recoveries on final molasses for the season stood at 11.26% (SY22) vs 11.73% (SY21).
Sugar diverted for cane juice and B-Heavy ethanol production at 11.4 lac qtls.
Commenting on the performance for the quarter and period ending March 2022, in a joint
statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram
Shriram, Vice Chairman & Managing Director, said:
We are witnessing very high inflation levels across the globe after many decades. There are supply chain
disruptions, prices of key commodities are still elevated, Interest rates are rising, currencies across the
globe are at historic lows against the US dollar and there is Russia-Ukraine conflict which is continuing.
These have led to uncertain economic environment. With our strong businesses and balance sheet we are
well placed to manage these uncertainties. Our operating and financial performance during the quarter
continues to remain strong.
Chemicals business has performed well, with cost pressures being more than compensated with increase
in volumes and product prices. Some softening is likely with the reduction in global demand however
overall returns are expected to remain reasonable and the cost improvement measures being taken will
cushion our margins. Vinyl business is facing cost pressures however the margins are good.
Sugar business is facing margin pressures in Sugar, however Ethanol earnings are stable. This season
costs have gone up with increased in SAP as well as adverse climate factors. Sugar policy especially in UP
requires better support from government. Ethanol continues to get fillip from the Government
considering their target of 20% mandate by 2025, here again cane juice based ethanol requires a
differentiated policy for UP given unfavorable cost dynamics. Fenesta & Shriram Farm Solutions
businesses continue to witness good growth with new product portfolios & geographical expansion.
Bioseed India has shown improvement despite delay in monsoons.
We are investing close to Rs 3,500 crs in various projects primarily in Chemicals and Sugar business which
are to be commissioned over the next 12 months and will be funded from internal accruals and debt.
These projects will increase our scale, forward integration, new product lines along with bringing
efficiencies and cost reduction. Some of these projects are directed towards creating wealth out of waste,
building future capabilities and reducing carbon footprint.