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On a consolidated basis, DCM Shriram reported 61.24% jump in net profit to Rs 253.96 crore on 46% increase in net revenue from operations to Rs 2,851 crore in Q1 FY23 over Q1 FY22.

The company's revenues from chloro-vinyl segment grew 90.44% to Rs 1,139.60 crore in Q1 FY23 as against Rs 598.41 crore in Q1 FY22, driven by prices & volumes. Revenues from sugar segment rose 26% to Rs 710 crore in Q1 FY23 over Q1 FY22, driven by higher volumes and prices. Revenue from fenesta was up 54% to Rs 167 crore, led by volumes and prices in both project & retail segment.

Revenue from fertilizers was up 46.41% year on year to Rs 321.49 crore in Q1 FY23. Revenue from Shriram farm solutions rose 2.61% to Rs 217.92 and bioseed revenue grew 9% to Rs 205.44 crore in Q1 FY23 over Q1 FY22.

Commenting on the performance in a joint statement, Ajay Shriram, chairman & senior managing director and Vikram Shriram, vice chairman & managing director of DCM Shriram 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. With comfortable balance sheet and cash flow we will continue to deliver growth on a sustained basis."

DCM Shriram is a diversified company with presence agri-rural business, chloro-vinyl business and value added business (fenesta building systems-UPVC windows & doors).

Shares of DCM Shriram rose 0.15% to Rs 999.60 on the BSE.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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