DCM Shriram Ltd. announces its Q4 and FY 17 financial results

DCM Shriram Ltd. announced its Q4 & FY17 financial results today.

 

Q4 and FY17 – Key Financials

 

                                                                                                   [Rs.cr]

  Q4 FY
  FY16 FY17 % Change FY16 FY17 % Change
Total Revenue 1,392 1,723 23.7 6,071 6,164 1.5
PBDIT 134 236 76.5 546 818 49.9
PBIT 111 204 84.2 448 705 57.3
Finance Cost 19 22 13.4 85 71 (16.4)
PAT 55 156 186.7 302 552 82.8

 

 

Key Developments and Outlook – FY 17

 

 

  1. 1.  Total Revenues stood at Rs. 6164.0 cr vs Rs. 6070.9 cr last year

 

  1. Revenues excluding DAP / MOP (suspended DAP/MOP trading in current year) grew by 14% YoY

 

  1. b. Sugar Business revenue was up 65% to Rs 1601 cr with higher volumes and realizations

 

  1. c. Chemicals business revenue grew by 22% to Rs 1012 cr driven by higher volumes from expanded capacity at the Bharuch (Gujarat) plant

 

 

 

  1. 2. PBDIT improved to Rs. 817.9 cr up 50%, driven by

 

  1.  Sugar Business – Higher volumes of sugar & power and better margins b.   Chemicals Business – Higher volumes
  2. c.  Bioseed India, Fenesta, Cement and Fertilizer businesses also contributed to the improvements in higher earnings

 

  1. d.  Overall PBDIT margins improved to ~13% from ~9% last year

 

  1. Rising Coal, Carbon material costs and low prices of Chlorine restricted the improvements

 

 

  1. 3.  PAT increased to Rs 551.7 cr, up 83% from Rs 301.8 cr in FY 16

 

  1. 4.  EPS for the year at Rs 34.0 up from Rs 18.6 in FY 16

 

  1. 5.  Net Debt as on March 31, 2017 stood at Rs. 928 cr vs. Rs 1057 cr as on March 31, 2016. Net Debt to equity stood at 0.37x as on March 31, 2017 vs 0.51x as on March 31, 2016.

 

  1. 6.  Projects Completed in FY 17 at an investment of ~ Rs. 700 cr.

 

  1. Chemical capacity increased from 780 tpd to 1343 tpd

 

  1. b.  Coal based captive power capacity increased from 188 MW to 248 MW

 

  1. c.  Bagasse based co-gen power expansion from 94.5 MW to 110.9 MW

 

  1. 7. New Projects – The following projects currently underway, progressing as per schedule, to be completed by Q4 FY 18

 

  1. Chlor-Alkali – Expansion/upgradation project at Kota plant at an investment of Rs. 97.5 cr b.       Sugar – 150 kld distillery at Hariawan unit, at an investment of Rs. 185 cr.
  2. c.     Fenesta – Expansion of fabrication and extrusion capacity at an investment of Rs. 18.5 cr.

 

  1. 8.  In the Standalone accounts (no impact on Consolidated financials), the company has taken a write- down of Rs. 85.12 cr in the value of investments in Bioseed International business, keeping in view the longer gestation period and higher losses over last few years due to one time inventory write offs

 

 

Key Developments and Outlook – Q4 FY 17

 

  1. 1.  Total Revenues stood at Rs. 1723.0 cr vs Rs. 1392.4 cr last year. Revenues excluding DAP / MOP

 

grew by 30% YoY, led by:

 

  1. Sugar Business revenue was up 67% to Rs 552 cr with higher volumes and realization

 

  1. b.  Chemicals business revenue grew by 45% to Rs 293 cr driven by higher volumes from expanded capacity at the Bharuch (Gujarat) plant

 

  1. 2.  PBDIT improved to Rs. 236.4 cr up 77%, driven by

 

  1.  Sugar Business – Higher volumes of sugar & power and better margins b.   Chemicals Business – Higher volumes
  2. c.  Overall PBDIT margins stood at ~13.7% from ~9.6% last year

 

  1. 3.  Standalone profits of the Company had an impact of Rs. 85.12 cr on account of write-down of investments in Bioseed International business.

 

  1. 4.  Finance costs stood at Rs. 21.7 cr vs Rs. 19.1 cr in FY 16

 

  1. 5.  PAT increased to Rs 156.4 cr, up 187% from Rs. 54.5 cr in FY 16

 

Commenting on the performance for the quarter, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said:

 

“The  company  recorded  satisfactory  operational  as  well  as  financial  performance  during  the  year. Healthy earnings growth during the year was a result of robust performance of the Sugar, Chemical and Plastic businesses. Other businesses also did well. Sugar operations in SY 17 have improved with growth in sugar production by ~45% and power export by ~62%. Commissioning of distillery will provide further impetus to the business. We are strengthening our cane development efforts further to achieve higher volumes on sustained basis. The expanded Chlor-Alkali plant at Bharuch has stabilised. Capacity utilisation is constrained due to low chlorine demand. We are working on expanding chlorine sales and the overall capacity utilisation. Better monsoons last year along with expectation of a normal monsoon this year should augur wel l for our Agri input businesses in India. We are taking steps to turn-around Bioseed International business. The cash generation is robust, balance sheet is strong and business model has strengthened. We look forward to further strengthen our businesses and invest in growth of the Company over the medium term.”

 

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