On a segmental basis, revenues from chloro-vinyl segment grew 89.6% to Rs 1,042.20 crore in Q3 FY22 as against Rs 549.70 crore in Q3 FY21, primarily led by prices. However, revenues from sugar skid 13.9% to Rs 565.40 crore in Q3 FY22 as compared to Rs 656.50 crore in Q3 FY21, due to lower sugar volumes despite better prices, led by lower monthly releases. The cane crush during the current season was higher than same period last year.

The domestic sugar volumes fell 29% Y-o-Y (year-on-year) to 9.5 lakh quintals, impacting revenues by Rs 131 crore. Domestic volumes are regulated by government through monthly releases which were lower Y-o-Y. Domestic sugar realizations were higher by 12% Y-o-Y. The distillery volumes down 17% Y-o-Y at 267 lakh litres due to maintenance shut down and lower availability of molasses. Distillery prices higher for current ethanol season.

Commenting on the Q3 performance, Ajay Shriram, the chairman and senior managing director (MD) and Vikram Shriram, the vice chairman and managing director (MD) of DCM Shriram, said, "This quarter was very challenging for our businesses. High and volatile commodity prices along with supply constraints made the operating environment very dynamic for Chloro-vinyl and Fenesta businesses. Erratic rains made supply chain management difficult for our Agri inputs businesses."

"We are glad that overall our businesses did well despite these challenges. Chloro-Vinyl business witnessed almost unidirectional increase in input costs especially energy prices. This was led by global factors such as increase in energy demand, supply constraints due to geo-political factors and adverse weather conditions. Freight costs are also adding to the cost push. However, globally the product prices have responded well to the increase in input costs."

"Operating environment continues to be dynamic. Chemical expansion and downstream projects are facing headwinds from commodity price increase as well as marginal delays due to 2nd and 3rd wave of COVID-19 and extensive rains. Sugar season has started well with cane crush levels (till date) higher than last season. During the quarter Board has approved investments in Sugar business to the extent of Rs 358 crore towards sugar capacity expansion, Sugar refinery and additional grain attachment."

"The 120 KLD distillery as well as the above projects are progressing as per plan. This will augur well for strengthening the business. It is important that the policy framework for the industry remains stable, for sustainability of the operating environment. Fenesta and Shriram farm solution are growing well. Bioseed India is facing operational pressures, we expect the business to perform well over medium term. Our cash-flows are healthy which continue to strengthen our balance sheet. For the next quarter we are bracing ourselves for another challenge in terms of third wave of COVID-19 pandemic."

The board declared second interim dividend of 260% i.e. Rs 5.20 per equity share of face value of Rs 2 each for the FY2021-22, amounting to Rs 81.1 crore.

The surplus cash net of debt as on 31 December 2021 stood at Rs 245 crore as against a net debt of Rs 385 crore as on 31 December 2020 and Rs 180 crore on 31 March 2021. The reduction in net debt was attributed to strong operating cash-flow over last 12 months. There is seasonality in capital employed which is high during Q4 FY22, due inventory buildup in sugar and urea subsidy.

DCM Shriram is a diversified company with presence agri-rural business, chloro-vinyl business and value added business (fenesta building systems-UPVC windows & doors).