Profit before tax in Q2 FY24 was at Rs 47.45 crore, down 79.19% from Rs 227.99 crore recorded in the corresponding quarter last year.

For Q2 FY24, the revenue from the Sugar business was Rs 1,087.23 crore (up 44.44% YoY), Chloro-Vinyl segment revenue was Rs 656.48 crore (down 29.88% YoY) and Fertilizers business revenue was Rs 368.49 crore ( down 37.04% YoY).

Further, revenue from SFS segment was Rs 279.95 crore (up 17.69% YoY), Fenesta building system segment revenue was Rs 208.99 crore (up 17.67% YoY) and that from Bioseed was Rs 127.96 crore (up 46.22% YoY).

Ajay Shriram, chairman & senior managing director and Vikram Shriram, vice chairman & managing director, in joint statement stated, “The overall business environment continues to be volatile given the geo political uncertainties, climate change, and slowing global growth. Domestically growth seems to be steady at healthy levels, however will not be immune to the above factors. We are glad to report an overall satisfactory performance given the challenging operating environment.

Its Chloro-Vinyl segment continues to face margin pressures a result of global supply chain imbalances; and are in positive territory. Our green power project has started yielding results & trial runs are on for 120 MW power plant that will reduce our power cost further. Other projects at Bharuch are also in advanced stages and will start yielding results from this year.

Sugar business environment continues to be positive with sugar supply for 2023-24 likely to be positive by 2-3 mmt & exports if any will be announced towards the end of season only. FRP for the season has been increased by Rs 10/- per qtl and ethanol price increase is yet to be announced. Factories in Uttar Pradesh are likely to start crushing in the 1st week of November.

Both Fenesta & Shriram Farm Solutions continue to witness growth. Fenesta commissioned the extrusion expansion at Kota & tied up with an UAE based firm for technology knowhow in Façade business.

With this round of investments coming to conclusion, we are actively looking for growth opportunities in core and adjacent businesses. We have announced debottlenecking of Loni Sugar Unit at a capex of Rs 163 crore to capture the full potential of our catchment area.”

Meanwhile, the board has approved the proposal for expansion of sugar plant at Loni, Uttar Pradesh by increasing cane crushing capacity from 7,300 TCD to 9,400 TCD for Rs 189 crore. The expansion is to be completed by September 2024.

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