DCM Shriram (DCMSHRIRAM) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 net revenues rose 9% year-on-year to INR 2,957 crore, with PBDIT up 73% to INR 235 crore and PAT at INR 63 crore, a 95% increase from Q2 FY24; H1 FY25 net revenues were INR 5,834 crore, PBDIT INR 509 crore, and PAT INR 163 crore.

• Strategic focus on upstream and downstream integration, sustainability, and renewable energy, with 74 MW of new renewable capacity and major capex in chemicals and Fenesta.

• Interim dividend of 100% (INR 31.19 crore) announced.

Financial highlights

• Q2 FY25 net revenues: INR 2,957 crore (up 9% YoY); H1 FY25 net revenues: INR 5,834 crore (up 6% YoY); Q2 FY25 PAT: INR 63 crore (up 95% YoY); H1 FY25 PAT: INR 163 crore (up 84% YoY).

• Q2 FY25 PBDIT: INR 235 crore (up 73% YoY); H1 FY25 PBDIT: INR 509 crore (up 59% YoY).

• Chemicals revenue up 19% YoY, PBDIT up 128% YoY, led by higher caustic soda volumes and lower energy costs.

• SFS revenues up 33% YoY, PBDIT up 64% YoY; Bioseed revenues up 24% YoY, PBDIT nearly 6x higher.

• Net debt at INR 302 crore as of September 2024, compared to negative INR 203 crore a year ago and INR 1,434 crore in March 2024.

Outlook and guidance

• Additional caustic capacity expected to be absorbed over next two years; commissioning of ECH and H2O2 projects to provide further stability.

• Domestic PVC demand expected to improve post-monsoon, with construction and agriculture driving growth.

• Anticipation of Ministry of Finance approval for anti-dumping duties on PVC imports, which could benefit domestic pricing.

• Continued focus on sustainability and green energy investments.

• Sugar prices expected to remain range-bound, not fully offsetting higher production costs.