DCM Shriram (DCMSHRIRAM) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 net revenue rose 11% year-on-year to ₹3,367 crore, with PBDIT up 12% and PAT up 9%, driven by growth in Chemicals, Shriram Farm Solutions, and Bioseed businesses.

• 9M FY25 net revenue increased 8% to ₹9,201 crore, PBDIT up 31%, and PAT up 29% year-on-year.

• Consolidated Q3 FY25 revenue was ₹3,518.89 crore, PAT ₹262.14 crore, and EBITDA ₹537.08 crore, with interim dividends totaling ₹87.33 crore declared.

• Strategic focus on capacity expansion, sustainability, and downstream integration, with major projects in renewable energy and advanced materials underway.

• Board approved up to ₹65 crore investment in hardware manufacturing and commissioned a 2,100 TCD expansion at the Loni sugar plant.

Financial highlights

• Chemicals revenue grew 35% year-on-year, with caustic soda volumes up 21% and PBDIT up 90% due to lower input costs and new power plant efficiencies.

• Vinyl business revenue increased 26% year-on-year; PBDIT improved to INR 29 crores from a loss last year.

• Sugar and ethanol revenue was flat at INR 889 crores; PBDIT declined to INR 113 crores due to higher production costs and lower sugar prices.

• SFS revenue rose 19% year-on-year, with PBDIT up 18% to INR 212 crores; Bioseed revenue up 22% and PBDIT up 76%.

• Net debt stood at INR 867 crores as of Dec 31, 2024, up from INR 314 crores last year, mainly due to CapEx and higher sugar inventory.

Outlook and guidance

• Expectation of full capacity utilization in chemicals within 12–18 months, aided by new ECH, aluminum chloride, and calcium chloride projects.

• CapEx guidance for FY26 is around INR 700 crores, covering aluminum chloride, calcium chloride, aluminum extrusion, green energy, and infrastructure.

• Advanced materials (epoxy) project of INR 1,000 crores progressing, with 80,000 TPA capacity planned.

• Anticipate continued volume growth and improved cost structure as new capacities ramp up.

• Sugar margin pressures expected to persist; industry pushing for higher MSP and export permissions.