DCM Shriram Consolidated , a diversified conglomerate, has reported a robust performance for the first quarter, with net revenues rising 13% year-on-year to Rs. 3,262.00 crore. The company's PBDIT (Profit Before Depreciation, Interest, and Tax) saw a significant increase of 19%, reaching Rs. 326.00 crore compared to Rs. 274.00 crore in the same quarter last year.

Chemicals Business Leads Growth

The chemicals business emerged as the primary growth driver, with revenues surging 43% year-on-year. This impressive growth was largely attributed to a 20% increase in caustic soda volumes, following the operationalization of a new 850 tons per day facility. The segment's PBDIT showed a remarkable 68% increase, benefiting from lower input prices, particularly energy costs, and improved efficiencies from the 120-megawatt power plant.

Diversified Performance Across Segments

Vinyl Business

The vinyl business reported flat revenue at Rs. 209.00 crore, with higher volumes of both PVC and Carbide offsetting a 17% decline in PVC prices.

Sugar and Ethanol

The sugar and ethanol business faced challenges, with revenue declining 14% due to lower domestic sugar volumes. The segment reported a negative PBDIT of Rs. 7.00 crore, impacted by a one-time provision of Rs. 36.00 crore for a retrospective levy on ethanol exports outside Uttar Pradesh.

Fenesta Building Systems

Fenesta Building Systems saw a 21% year-on-year revenue increase, driven by volume growth in both project and retail segments.

Shriram Farm Solutions

Shriram Farm Solutions reported a strong 29% year-on-year revenue growth, supported by higher volumes across verticals, especially in crop protection.

Strategic Initiatives and Expansion

DCM Shriram Consolidated has made significant strides in expanding its business portfolio:

1. Acquisition of Hindustan Specialty Chemicals Limited, marking the company's entry into the epoxy resin segment.
2. Commissioning of a compressed biogas plant, now operating at 90% capacity utilization.
3. Ongoing expansion in aluminum chloride and calcium chloride capacities at Bharuch.
4. Launch of 8 new products in crop protection and specialty plant nutrient verticals by Shriram Farm Solutions.

Outlook

Despite global economic uncertainties, DCM Shriram Consolidated remains optimistic about its growth trajectory. The company expects to maintain its revenue guidance of 10-15% growth, with stronger performance anticipated in the third and fourth quarters due to seasonality in its businesses.

Ajay Shriram, Chairman & Senior Managing Director, commented on the results: "Our company is well positioned to capitalize on these strengths. We have consistently invested to expand capacities, improve integration and enhance competitiveness across sectors. We harness digital platforms and embedding sustainability across operations. Our recently concluded CAPEX program sets the stage for the next chapter of volume-driven profitable growth, anchored in operational excellence and a strong balance sheet."

As DCM Shriram Consolidated continues to navigate through global economic challenges, its diversified portfolio and strategic investments are expected to drive sustainable growth in the coming quarters.

DCM Shriram Consolidated , a diversified conglomerate with significant presence across the agri-rural value chain, chemicals, and vinyl industry, has outlined its growth strategy centered on four key areas while announcing its financial results for the first quarter.

Growth Strategy

The company has revealed a multi-pronged approach to drive future business growth:

1. Margin Expansion: DCM Shriram aims to improve profitability across its business segments.
2. Development of New Products: The company plans to innovate and introduce new offerings to expand its product portfolio.
3. Import Substitution Opportunities: DCM Shriram is looking to capitalize on opportunities to replace imported products with domestically manufactured alternatives.
4. Transition to Green Energy Solutions: The company is focusing on sustainable practices by incorporating green energy solutions into its operations.

Q1 Financial Highlights

For the quarter ended June 30, DCM Shriram reported the following consolidated financial results:

Segment Performance

Chemicals and Vinyl

• Revenue: ₹1,113.78 crore
• Segment Results: ₹184.69 crore
• The segment witnessed volume-led growth with improved margins.

Sugar and Ethanol

• Revenue: ₹1,017.34 crore
• Segment Results: -₹37.38 crore
• The business faced margin pressures, with a one-time negative impact of approximately ₹36 crore due to retrospective levy of duty on ethanol exported outside Uttar Pradesh.

Fenesta Building Systems

• Revenue: ₹248.40 crore
• Segment Results: ₹27.02 crore
• Continued growth in core business and strategic expansion of product portfolio.

Shriram Farm Solutions

• Revenue: ₹349.64 crore
• Segment Results: ₹22.74 crore
• Driven by volumes across verticals, especially in crop protection and nutrition.

Fertiliser

• Revenue: ₹390.16 crore
• Segment Results: ₹34.71 crore
• Benefited from higher volumes and better energy efficiency.

Bioseed

• Revenue: ₹284.00 crore
• Segment Results: ₹39.79 crore
• Led by better margins in Paddy and Corn segments.

Strategic Developments

• DCM Shriram has signed a definitive agreement to acquire 100% equity shares of Hindusthan Speciality Chemicals Limited, subject to necessary approvals.
• The company completed the acquisition of a 53% stake in DNV Global Private Limited on May 5, strengthening its presence in the hardware space.

Management Commentary

Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, in a joint statement, said: "Backed by a robust balance sheet, we're advancing into adjacent business areas, leveraging both organic and inorganic opportunities, and embedding sustainability at every stage to secure responsible, long-term growth."

The management also highlighted the challenging global economic environment, including trade tensions and policy unpredictability, while noting India's position as the fastest-growing large economy.

DCM Shriram continues to focus on executing its capex roadmap, with upcoming projects including the commissioning of a 52,000 TPA Epichlorohydrin (ECH) plant and the completion of a 68 MW renewable energy joint venture with JSW Renewables for the Kota complex.

As DCM Shriram implements its growth strategy and navigates the current economic landscape, the company remains committed to strengthening its core operations, scaling adjacent businesses, and enhancing sustainability outcomes across its diverse portfolio of businesses.