DCM Limited , a diversified company with interests in IT services and engineering, has reported a turnaround in its financial performance for the first quarter. The company also announced the appointment of new secretarial auditors for a five-year term.

Financial Performance

For the quarter ended June 30, DCM Limited reported:

• Consolidated revenue from operations of Rs 1,761.00 lakh, down from Rs 1,844.00 lakh in the same quarter last year.
• Profit after tax of Rs 324.00 lakh, compared to a loss of Rs 29.00 lakh in the corresponding quarter.
• Earnings per share (EPS) of Rs 1.74, a significant improvement from the loss per share of Rs 0.15 in the corresponding quarter of the previous year.

The company's IT Services segment continued to be the primary revenue driver, contributing Rs 1,754.00 lakh to the total revenue.

Segment Performance

The IT Services segment showed strong performance, while the Grey Iron Casting segment continued to face challenges.

Ongoing Challenges

DCM Limited continues to grapple with industrial unrest at its engineering business undertaking. The company has not made any provision for wages pertaining to the lockout period from October 22, 2019, to June 30, which amounts to Rs 7,584.00 lakh.

The company is also facing issues with its land development project in Hisar, Haryana. The license for development has been suspended by the Director General, Town and Country Planning, Haryana, pending an inquiry. This has resulted in the company keeping Rs 5,000.00 lakh in advances under current liabilities.

Appointment of New Secretarial Auditors

In a move towards strengthening its corporate governance, DCM Limited's Board of Directors has approved the appointment of M/s. Pragnya Pradhan & Associates as the Secretarial Auditors of the Company. The appointment is for a term of five consecutive years, subject to shareholder approval at the upcoming Annual General Meeting.

M/s. Pragnya Pradhan & Associates is a firm with over a decade of experience in providing professional services in areas such as Secretarial Audit, Due Diligence, and other assurance services. The firm specializes in matters related to SEBI Regulations, RBI Guidelines, and various corporate legal matters.

Looking Ahead

Despite the ongoing challenges, DCM Limited's management remains optimistic about the company's future. They are actively pursuing the revocation of the suspension order for their Hisar land development project and are exploring options to restructure the Engineering Business Undertaking.

The company's ability to turn a profit this quarter, despite the various hurdles, signals potential for recovery. However, the resolution of the industrial unrest and the land development issues will be crucial for DCM Limited's long-term stability and growth.

DCM Shriram Industries , a diversified company with interests in sugar, chemicals, and industrial fibers, has reported a decline in both revenue and net profit for the first quarter of the current fiscal year.

Revenue Performance

The company's Q1 revenue stood at ₹5.00 billion, marking a decrease from ₹5.54 billion reported in the corresponding period of the previous year. This represents a year-over-year decline of approximately 9.7% in the top line.

Profit Figures

DCM Shriram Industries' consolidated net profit for the quarter under review was ₹169.00 million. This figure shows a significant drop from the ₹314.00 million net profit recorded in the same quarter of the previous fiscal year, indicating a decrease of about 46.2%.

Comparative Analysis

To provide a clearer picture of the company's performance, here's a comparative table of the key financial metrics:

The table illustrates the extent of the decline in both revenue and profitability compared to the previous year's first quarter.

Factors and Implications

While specific reasons for the decline were not provided in the report, such decreases in both revenue and profit could be attributed to various factors such as market conditions, input costs, or industry-specific challenges. Investors and analysts will likely be keen to understand the underlying causes of this performance dip and any strategies the company plans to implement to address these challenges in the coming quarters.

As DCM Shriram Industries navigates through these financial headwinds, stakeholders will be watching closely for any signs of recovery or further information from the company regarding its outlook for the remainder of the fiscal year.