Share price of this small-cap fertiliser stock moved down by nearly 7.5 percent on BSE to hit an intraday low at Rs. 938.9 in the trading session of Tuesday, after reporting Q4 results with a decline in the net profit by percent 51 QoQ and revenue from operations by 19.3 percent QoQ.
With a market capitalisation of Rs. 15,171.6 crore, the share price of DCM Shriram Limited closed in the red at Rs. 972.9, down by 4.2 percent.
The stock has delivered positive returns of nearly 19.5 percent in the last one year and around 9.9 percent in the last six months. However, so far in 2024, the company has given about 5.4 percent of negative returns.
The fluctuations in the share prices were observed after DCM Shriram Limited announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Monday post-market hours.
The revenue from operations stood at Rs. 2,531.21 crore in Q4 FY23-24, down by 19.3 percent QoQ from Rs. 3,137.54 crore in Q3 FY23-24, and dropped 5.4 percent YoY from Rs. 12,079.51 crore in FY22-23 to Rs. 11,431.3 crore in FY23-24.
On a quarter-on-quarter basis, the company’s net profit fell by 51 percent from Rs. 240.5 crore in Q3 FY23-24 to Rs. 117.8 crore in Q4 FY23-24, and fell by nearly 51 percent YoY from Rs. 910.84 crore in FY22-23 to Rs. 447.1 crore in FY23-24.
The net debt of DCM Shriram as of Q4 FY23-24 is Rs. 1,434 crore, as compared to Rs. 681 crore as of Q4 FY22-23, while the Return on Capital Employed (RoCE) for the period came in at 13.6 percent, compared to 27.3 percent for the financial year ended on 31st March 2023
In a joint statement, the company’s Chairman & Senior Managing Director and Vice Chairman & Managing Director stated that, “Chemical business is adversely impacted due to margin pressures led by sub-optimal ECUs, a resultant of excess domestic capacities and low global prices. Global PVC prices continue to be subdued owing to the dumping of cheap PVC by China”.
On May 3, 2024, the company commissioned an 850 TPD caustic soda expansion project at its chemical complex in Jhagadia, Bharuch District, Gujarat, bringing the total installed capacity to 2,225 TPD at Bharuch and the overall annual caustic soda capacity at both Bharuch and Kota locations to 1 Million MT.
Further, the Board of the company has recommended a final dividend of Rs. 2.6 per equity share of face value of Rs. 2 each, aggregating to Rs. 40.54
crore. During the year, the company paid an interim dividend of Rs. 4.00 per equity share aggregating to Rs. 62.38 crore, thereby making the total dividend of Rs. 6.6 per share (previous year Rs. 14 per share) aggregating to Rs. 102.92 crore.
DCM Shriram Limited is a diversified and integrated business entity with a business portfolio spanning multiple sectors including the agri-rural business, chlor-vinyl business and value-added business.
The company operates coal-based captive power, facilities – in Kota and Bharuch rated at 263 MW, and has manufacturing facilities of fertilizer, Chlor-Vinyl and Cement in Kota (Rajasthan) and of Chlor-Alkali in Bharuch (Gujarat).
Written by Shivani Singh
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