Multibagger stock announced 230% interim dividend, NPAT increased 19% YoY in Q2

DCM Shriram Ltd., a mid-cap company with a market capitalization of Rs. 17,780.69 Cr, operating in diversified industry. The three main categories represented in DCM Shriram’s business portfolio are rural agriculture, chlor-vinyl and value added such as the Fenesta building system. Cement, fertilizer and chloro vinyl are all manufactured by DCM Shriram in Kota (Rajasthan), while chlor-alkali is produced in Bharuch (Gujarat). The company has 263 MW coal-fired power plants in Kota and Bharuch (Gujarat). The urea plant’s production capacity in Kota is 379,500 TPA, while the chlor-alkali production capacity is 1845 TPD in both Kota and Bharuch.

The company said in a stock exchange filing that “The Board of Directors has declared an interim dividend of 230%, i.e. Rs 4.60/- each equity share par par value Rs 2/ – each dividend for the fiscal year 2022-23, to be paid/distributed to all relevant persons on or before November 17, 2022. “

On a consolidated basis, the company reports a net profit of Rs. 128.12 crore in Q2FY23 down 19.17% YoY against Rs. 158.50 crore in Q2FY22 and also down 49.55% QoQ 253.96 Cr in Q1FY23. In Q2FY23, the company reported total revenue from its operations 2,875.38 Cr up 32% over the same period 2,177.53 Cr in Q2FY22 but decreased by 3.24% QoQ compared to 2,971.83 Cr in Q1FY23. EBITDA drops 2.85% YoY to Rs. 302.37 crore in Q2FY23 from Rs. 311.23 crore in Q2FY22. DCM Shriram’s earnings per share (EPS) fell against Rs. 10.16 in September 2021 and Rs. 16.29 in the quarter ending June 2022 to Rs. 8.22 in September 2022.

On an independent basis, the company reported a net profit of Rs. 182.42 crore in Q2FY23, up 16.68% YoY against Rs. 156.34 crore in Q2FY22 but down 27.70% QoQ 252.31 Cr in Q1FY23. The company reported total revenue from its operations 2,809.65 Cr in Q2FY23 increased by 30.18% YoY compared to 2,158.20 Cr in Q2FY22 but down 3.38% QoQ 2,908.02 Cr was recorded in Q1FY23. In September 2022, EBITDA reached Rs. 353.59 crore, up 14.59% YoY against Rs. 308.57 crore in September 2021. Earnings per share (EPS) of DCM Shriram increased to Rs. 11.70 in September 2022 from Rs. 10.03 in September 2021 but down from Rs. 16.18 reported for the quarter ended June 2022.

Ajay Shriram, President and Senior CEO, and Vikram Shriram, Vice President and CEO, said, “We are pleased to report good overall results for the quarter. Businesses continue to operate in a highly volatile economic environment due to geopolitical uncertainties, climate change, currency tightening and recession concerns all around. India is rated higher with strong GDP growth but not immune to the above factors. Our company is also affected by these factors but has inherent strengths in business and financial models to manage a difficult operating environment. “

He added that “Our Chemicals business has performed well given the company’s reasonable product costs, a result of global supply chain imbalances. The vinyl business is struggling with lower product prices with declining global demand and higher supply from China. The current major concern for ChloroVinyl’s business is that high energy prices continue to be stable due to volatile geopolitics. We are taking steps to reduce our energy costs by setting up additional 120 MW energy efficient confinement coal power plants and building 50 MW renewables. We plan to take more such steps to reduce costs as well as increase our green footprint. “

“Sugar industry is poised for growth with favorable drivers for Ethanol as well as Sugar. For the UP status, better support policies are needed to promote exports as well as Ethanol made from sugarcane juice. The company is looking for opportunities to build multiple revenue streams beyond Sugar and Ethanol through the Circular economy. Shriram Farm Solutions’ Agri Input business saw growth despite unfavorable monsoons. Fenesta’s business continues its growth trajectory with strong operating performance. It is now going into the business of Facade. Our investment projects are around Rs. 3,500 crs across businesses are proceeding as scheduled. With a healthy balance sheet and operating cash flow, we will look forward to more growth paths and enhancing our scale, integration and cost effectiveness,” said Ajay. Shriram said.

DCM Shriram Ltd shares closed at 1,070.25 per person on Friday, up 0.50% from the previous close of 1,064.95. In the last trading session, this stock recorded a total volume of 68,256 shares compared to the 20-day average volume of 76,674 shares. Over the last 5 years the stock has given multibagger a return of 109.59% and over the last 3 years this stock has given multibagger a return of 175.94%. Over the past 1 year, the stock is up 11.80%, and on a year-to-date basis, the stock is up 10.34% so far in 2022. In the quarter ending September or Q223, the company The company records shareholders’ shares at 66.53%, FII holds 2.97%, DIIs holds 8.62%, Government holds 0.02%, the public holds 20.84% ​​and shares another is 1.01%.

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