DCM Shriram fell 2.61 percent to Rs 291.35 after consolidated net profit dropped 29 percent to Rs 207.38 crore on 0.9 percent decline in net sales to Rs 1,862.99 crore in Q4 March 2020 over Q4 March 2019. Against Rs 371.59 crore in Q4 March 2019, consolidated profit before tax tanked 33.3 percent to Rs 247.91 crore in Q4 March 2020. As compared to Rs 87.36 crore in Q4 March 2019, current tax expenses slumped 72.7 percent to Rs 23.82 crore in Q4 March 2020.
Lower chemicals ECU (Electro Chemical Unit) prices dragged revenues from operations. The price of Electro Chemical Unit slumped 35 percent year-on-year leading to lower revenues by Rs 158 crore. On account of nationwide lockdown due to COVID-19, volumes lost 4 percent year-on-year. As a result of nationwide lockdown due to COVID-19, Poly Vinyl Chloride (PVC) volumes also tumbled 22 percent year-on-year.
However, revenues were boosted by higher domestic sugar volumes up by 38 percent year-on-year and distillery volumes up 83 percent year-on-year consequent to commissioning of second distillery 200 kilo-litres per day (KLD) and higher sugar prices 4 percent year-on-year during Q4 FY20. Sugar Free Solutions value combined inputs revenues up 22 percent year-on-year.
DCM Shriram overall has maintained adequate cash in hand and undrawn bank limits. As a forward integration of sugar distillery operations, the company has decided to enter the business of country liquor. To set up the country liquor bottling plant of capacity of 11,000 cases per day at Hariawan (UP) sugar unit, the board has approved an investment of about Rs 42.40 crore.
