DCM Shriram Q2 Results | Net profit rockets 96%; dividend declared; 2 new projects okayed

Diversified agri products firm DCM Shriram Ltd on Wednesday (October 30) reported a 95.7% year-on-year (YoY) jump in net profit at ₹63 crore for the second quarter that ended September 30, 2024. In the corresponding quarter of the previous fiscal, DCM Shriram posted a net profit of ₹32.2 crore, the company said in a regulatory filing.

Revenue from operations increased 10.8% to ₹3,130.1 crore against ₹2,825.4 crore in the year-ago period. At the operating level, EBITDA jumped 58.8% to ₹181.2 crore in the second quarter of this fiscal over ₹114.1 crore in Q2 of FY24.

Also Read: Tata Power Q2 Results | Net profit rises 6% to ₹927 crore; solar segment shines

The EBITDA margin stood at 5.8% in the reporting quarter against 4% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The board of directors has declared an interim dividend for the financial year 2024-25 on the paid-up equity share capital of the company @ 100% (₹2 per equity share of face value of ₹2 each). The record date fixed for the purpose of the said interim dividend will be November 11, 2024. Further, the said interim dividend will be paid/dispatched to all eligible shareholders on or before November 28, 2024.

Also, the board has approved an equity investment of up to ₹60 crore for around 28% of equity stake in one or more special purpose vehicles for setting up a wind solar hybrid renewable power project for replacing existing coal-based 40 MW power with 68 MW RE (renewable energy) power. The board approved capital expenditure of ₹23 crore for this project at Kota, Rajasthan.

Also Read: Biocon Q2 falls short of estimates; net profit dives 84% but revenue up 4%

The board further approved a capex proposal of a total ₹310 crore to set up an additional aluminium chloride facility of 100 TPD and a new granulated calcium chloride facility of 225 TPD at Jhagadia in Bharuch.

The company already has an operational 150 TPD aluminium chloride plant in Jhagadia and with this addition, the company will become the largest producer of this product in the country. Given the export potential, the company is also setting up a repackaging unit in Europe to cater to specific requirements of aluminium chloride customers in those markets.

The results came after the close of the market hours. Shares of DCM Shriram Ltd ended at ₹1,045.05, up by ₹40.40, or 4.02%, on the BSE.

Also Read: AIA Engineering Q2 Results | Net profit declines 21% to ₹257 crore, revenue falls 28% ₹1,044 crore