DCM Shriram Ltd has reported a remarkable 77.2% year-on-year (YoY) increase in net profit to ₹100.3 crore for the first quarter ending June 30, 2024. This impressive growth comes from a net profit of ₹56.6 crore in the corresponding quarter of the previous year, as detailed in a regulatory filing.
Revenue from operations also saw a rise, climbing 4.6% to ₹3,073 crore from ₹2,937.2 crore in the previous fiscal year. At the operating level, the company’s EBITDA surged by 49.1% to ₹247.7 crore in the first quarter, up from ₹166.1 crore in the same period last year. Consequently, the EBITDA margin improved to 8% from the previous year’s 5.7%.
In terms of financial stability, DCM Shriram recorded a net debt of ₹1,459 crore as of June 30, 2024, compared to ₹1,434 crore on March 31, 2024. The return on capital employed (ROCE) for the period increased to 14.3% from 13.6% for the fiscal year ending March 31, 2024.
DCM Shriram performance and market response
DCM Shriram Ltd, a diversified business conglomerate with a group turnover of ₹11,431 crore, has shown resilience and growth across its diverse business portfolio.
The counter touched an intraday high and low of ₹1,030 and ₹1,008, respectively. Shares of DCM Shriram Ltd ended at ₹1,016.35, up by ₹15.90, or 1.59% on the BSE.
DCM Shriram quarterly results and financial insights
DCM Shriram’s Q1 results, declared on July 23, 2024, revealed that the topline increased by 4.63%, and the profit surged by 77.27% YoY. Compared to the previous quarter, the revenue grew by 21.41%, although the profit decreased by 14.86%.
Notably, selling, general, and administrative expenses declined by 1.77% quarter-on-quarter (QoQ) and decreased by 13.94% year-on-year (YoY). Operating income was down by 12.68% QoQ but increased by 71.8% YoY.
The earnings per share (EPS) for Q1 was ₹6.43, marking a 77.13% YoY increase. Over the last week, DCM Shriram delivered a 1.52% return, a 2.05% return in the last six months, and a -1.56% year-to-date (YTD) return. The company currently holds a market cap of ₹15,648.69 crore, with a 52-week high/low of ₹1,175 and ₹826.3, respectively.
DCM Shriram future prospects and strategic direction
The company’s strategic direction and future prospects appear promising with the nearing completion of its capex in the chemical business. They also emphasised the ongoing expansion in the sugar business and the development of the CBG project, which are progressing as per schedule.
This quarter’s robust performance reflects DCM Shriram’s strategic investments and operational efficiencies. The company’s diverse portfolio and strong financials position it well for continued growth and resilience in the coming quarters.
