DCM Shriram (DCMSHRIRAM) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 net revenue rose 9% year-on-year to INR 2,957 crore, with PBDIT up 73% to INR 235 crore and PAT up 95% to INR 63 crore; H1 FY25 net revenue increased 6% to INR 5,834 crore, PBDIT up 59% to INR 509 crore, and PAT up 84% to INR 163 crore.

• Strategic focus on upstream and downstream integration, major CapEx in chemicals and Fenesta, and sustainability initiatives including 74 MW renewable energy capacity.

• Operational agility and supply chain restructuring highlighted amid global geopolitical tensions and protectionism.

• Interim dividend of 100% (INR 31.19 crore) declared.

Financial highlights

• Revenue from operations grew 10.8% year-on-year for Q2 FY25 to ₹3,130.09 crore; EBITDA for Q2 FY25 was ₹235.08 crore, up from ₹136.13 crore in Q2 FY24.

• Q2 FY25 PBDIT increased 73% year-on-year to INR 235 crore, with chemicals segment PBDIT up 128%.

• H1 FY25 net revenue up 6% year-on-year to INR 5,834 crore; PBDIT up 59% to INR 509 crore.

• Net debt at INR 302 crore as of September 2024, down from INR 1,434 crore in March 2024; cash and cash equivalents at ₹1,125.48 crore.

• Board declared a 100% dividend, totaling INR 31.19 crore.

Outlook and guidance

• Chemical business capex nearing completion; Hydrogen Peroxide and Flexi-fuel Caustic Soda Flaker plants commissioned, ECH plant expected by Q4 FY25.

• Focus on sustainability, green energy, and downstream chemical projects.

• Anticipation of Ministry of Finance approval for anti-dumping duty on PVC imports, likely to benefit profitability.

• Sugar prices expected to remain range-bound in FY25, with industry pushing for higher MSP.