Company has registered Rs 2,851 crore net revenue from operations in Q1FY23 compared to Rs 1,957 crore in Q1 FY22.

 DCM Shriram Ltd. announced its Q1 FY23 financial results. Company has reported Rs 2,851 crore net revenue from operations in Q1FY23 compared to Rs 1,957 crore in Q1 FY22 registering 46 per cent growth YoY.

Key developments of Q1 FY23 are as follows.

• Net Revenues (net of excise duty on sale of country liquor) up 46 per cent YoY at Rs 2,851 crore.
• Chemicals revenues up by 117 per cent at Rs 896 crore driven by prices & volumes.
• Vinyl business revenues up 31 per cent at Rs 243 crore driven by volumes and prices.
• Carbide prices up 18 per cent and PVC prices up 3 per cent.
• Carbide volumes up 135 per cent. PVC volumes down 13 per cent YoY. Volumes in Q1 FY22 were affected due to second wave of Covid 19. Volumes had an impact of Rs 24 crore on the revenues.
• Fertilizer revenues up 46 per cent at Rs 321 crore resulting from higher gas prices which is a pass through.
• Shriram Farm Solutions (SFS) revenues stable at Rs 218 crore vs 212 for Q1 FY22.
• Overall, Sugar business revenues (net of excise duty on country liquor sales) up 26 per cent at Rs 710 crore led by sugar volumes up 20 per cent YoY, due to better releases and domestic sugar prices up 7 per cent.
• Distillery volumes up 12 per cent YoY and ethanol prices also higher for current ethanol season
• Bioseed revenues up 9 per cent YoY at Rs 205 crore
• Revenue from India operations up 31 per cent YoY led by Cotton in trade channel and Corn in institutional channel.

Commenting on the performance for the quarter and period ending March 2022, in a joint statement, Ajay Shriram, Chairman & Senior Managing Director, and 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.

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 Uttar Pradesh requires better support from government. Ethanol continues to get fillip from the Government considering their target of 20 per cent mandate by 2025, here again cane juice-based ethanol requires a differentiated policy for UP given unfavourable cost dynamics. Fenesta & Shriram Farm Solutions businesses continue to witness good growth with new product portfolios & geographical expansion.

We are investing close to Rs 3,500 crores 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.