This ethanol-based stock is in focus as its share price jumped by 10.77 percent following its Q4FY25 Results with 51.87 percent YoY net profit growth. The company board also recommended a 170 percent final dividend
With a market capitalization of Rs. 16,780 Crore, the stock of DCM Shriram opened at Rs. 1,070, up 5.10 percent from yesterday’s close, and after opening, it made a high of Rs. 1,128, up 10.77 percent. Additionally, the Yearly return for the stock is 6 percent, and the past 5-year return is an impressive 333 percent.
Financial Highlights & Dividend Recommendation
The company reported a 19.28 percent YoY increase in revenue from Rs. 2,531 Crore in Q4FY24 to Rs. 3,019 Crore in Q4FY25. On a QoQ basis, the company reported a decrease of 14.20 percent in revenue from Rs. 3,519 Crore in the previous quarter.
Their Net profit saw an increase of 51.87 percent YoY from Rs. 117.80 Crore to Rs. 178.91 Crore for the same period. On a QoQ basis, the company reported a decrease of 31.75 percent in Net profit from Rs. 262.14 Crore in the previous quarter.
The Huge Jump in Net Profit of 51.87 percent can be attributed to a 19.28 percent increase in YoY Revenue and a decrease of Rs. 80.36 Crores in Q4’s cost of material consumed from Rs. 1925.60 crores in Q4FY24 to Rs. 1,844.64 crores in Q4FY25.
The company’s board reported a final dividend of Rs. 3.40 per equity share of face value of Rs. 2 each, which is 170 percent of the total face value. The dividend will be subject to approval of the shareholders at the 36th AGM. Total dividend for FY25 stood at Rs. 9 per share or 450 percent of face value.
Out of the total revenue from operations of Rs. 3,019 Crore, Sugar and Ethanol accounted for most of the revenue at 38.57 percent, followed by Chemicals and Vinyl at 33.49 percent, and Fertilisers at 12.01 percent. The rest of 15.92 percent of the revenue comes from Fenesta Building Systems, Bioseed, Shriram Farm Solutions, and others.
DCM Shriram Ltd. was established in 1990 as part of a restructuring. The company is headquartered in New Delhi, India, but its manufacturing plants and business operations are spread across several states, including Uttar Pradesh, Rajasthan, Gujarat, and Madhya Pradesh.
Over the years, DCM Shriram has grown into a prominent player in chemicals, sugar, ethanol, seeds, and rural solutions, maintaining a strong base in India’s northern and central regions. The company operates through multiple business segments, including Chlor-Vinyl (producing caustic soda, chlorine, PVC resins, and related products), Sugar (operating sugar mills along with distilleries producing ethanol), Bioseed (a hybrid seed business), and Shriram Farm Solutions (providing agri-inputs and services).
Written By Abhishek Das
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