DCM Shriram shares decline 4% as net profit figures decline

DCM Shriram's net profit for the June quarter decreased by 78 percent to Rs 57 crore, and shares were down 3.93 percent at Rs 868.5 at 9:30 am. Additionally, revenue decreased by 2% year on year (YoY), to Rs 2,780 crore.

In Q1FY24, revenue from the chemical industry decreased by 40% YoY to Rs 536 crore. The United States, Europe, China, and India produced an enormous amount of chemicals, and there was not enough demand to balance this supply.

For the quarter, vinyl business revenue decreased 32% YoY to Rs 164 crore.  China's aggressive pricing strategy caused a decline in vinyl industry revenue for DCM Shriram. According to the company's investor presentation, China continues to supply products at low rates, and the Indian government's laxity to tax such goods has an impact on domestic vinyl production.

The quarter from April to June saw a 35 percent YoY increase in sugar business revenue to Rs 968 crore. Due to higher worldwide sugar prices and greater exports, the company's sugar results were robust.

A diverse and integrated corporation, DCM Shriram has a significant and expanding presence throughout the Agri-Rural value chain and the Chloro-Vinyl industry.

Source: Media Reports

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