DCM Shriram (DCMSHRIRAM) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw consolidated net revenue rise 3% year-over-year to ₹2,876 crore, with PBDIT up 49% and PAT up 77% compared to Q1 FY24, led by Chemicals and Vinyl growth, while Sugar faced margin pressure from higher costs and export restrictions.

• Major capex in Chemicals is nearing completion, with new caustic and power capacities commissioned and further projects in trial runs.

• Profit after tax rose to ₹100.30 crore from ₹56.58 crore year-over-year.

• EBITDA for the quarter was ₹273.73 crore, compared to ₹183.38 crore in Q1 FY24.

• Strategic focus on capacity expansion, cost efficiency, sustainability, and new product development across business lines.

Financial highlights

• Net revenues (net of excise) for Q1 FY25 were INR 2,876 crore, up from INR 2,780 crore year-over-year.

• PBDIT rose 49% year-over-year to INR 274 crore.

• PAT: ₹100 crore (up 77% YoY); PBIT margin improved to 6.5% from 4% YoY.

• Net debt as of June 30, 2024, stood at INR 1,459 crore, up from INR 926 crore a year ago.

• ROCE for the period at 14.3%, up from 13.6% for FY24.

Outlook and guidance

• Expectation of gradual improvement in chemicals business as industry pressures bottom out and new projects (ECH, H2O2) add stability.

• Anticipate significant capacity utilization in new caustic facilities by year-end, with optimal levels next year.

• Hydrogen peroxide and epichlorohydrin plants to be commissioned in Q2 and Q3 FY25, with major revenue impact from next year.

• Sugar business outlook remains stable but margin improvement depends on policy support and feedstock availability for ethanol.

• Fenesta and Shriram Farm Solutions to maintain growth momentum; normal monsoon expected to support agri demand.