The company's revenues from chloro-vinyl segment grew 15% to Rs 936 crore in Q2 FY23 as against Rs 814 crore in Q2 FY22, driven by prices & volumes. Revenues from sugar segment rose 5% to Rs 617 crore in Q2 FY23 over Q2 FY22, on account of better sugar realizations. Revenue from fenesta was up 37% to Rs 178 crore, led by volumes growth & prices.

Revenue from fertilizers surged 99% year on year to Rs 585 crore in Q2 FY23, resulting from higher gas prices which is a pass through, said the company. Revenue from Shriram farm solutions rose 33% to Rs 238 crore, driven by growth across product categories. Bioseed revenue grew 13% to Rs 88 crore in Q2 FY23 over Q2 FY22.

The company said that the cost pressures are likely to continue and product prices are expected to support costs, margins are expected to be reasonable.

Commenting on the performance in a joint statement, Ajay Shriram, chairman & senior managing director, and Vikram Shriram, vice chairman & managing director, said: “We are glad to report a good overall performance during the quarter. The businesses continue to operate in a very volatile economic environment given the geo political uncertainties, climate change, monetary tightening and fears of recession around the corner. India is better placed with strong GDP growth but is not immune to above factors. Our Company also gets impacted by these factors but has inherent strength in its business model and financials to manage the tough operating environment.

Our Chemical business has performed well with reasonably firm product prices, a result of global supply chain imbalance. Vinyl business is facing headwinds of lower product prices with global decline in demand and higher sourcing from China. The major concern today for Chloro-Vinyl business is high energy prices which continue to be firm given the geo political instability. We are taking steps to reduce our energy costs by setting up additional 120 MW energy efficient captive coal based power plant and tying up for 50MW renewable power. We plan to take more such steps to reduce our costs as well as increase our green footprint.

Sugar industry is poised for growth with favorable dynamics with respect to Ethanol as well as Sugar. For the state of UP there is a need for better policy support to push exports as well as cane juice based Ethanol. The Company is exploring opportunities to build multiple revenue streams beyond Sugar and Ethanol through Circular economy.

Agri Input business of Shriram Farm Solutions witnessed growth despite unfavorable monsoons Fenesta business continues its growth trajectory with strong operating performance. It is now entering into business of Facades.

Our Investment projects of around Rs 3,500 crore across businesses are under progress as per schedule. Given the health of our balance sheet and operating cash-flow, we will look forward to more growth avenues and enhance our scale, integration and cost efficiencies.

Meanwhile, the board of directors declared an interim dividend of Rs 4.60 per equity share for the financial year 2022-23, which will be paid or dispatched on or before 17 November 2022.

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