DCM Shriram (DCMSHRIRAM) Q4 95/96 earnings summary

Executive summary

• FY ended Mar. 31, 1996 delivered all-round growth and higher profitability; reported profit rose to Rs. 41.79 crore from Rs. 28.73 crore.

• Textile losses narrowed, cement profitability improved, and the 30 MW Kota power plant delivered savings; the new Jhagadia chlor-alkali plant was commissioned in March 1996.

Financial highlights

• Sales were Rs. 590.24 crore; profit before depreciation and miscellaneous write-offs was Rs. 60.89 crore, versus Rs. 43.01 crore in FY95.

• Reported profit was Rs. 41.79 crore versus Rs. 28.73 crore; EPS was Rs. 29.62 and the proposed equity dividend was 40%.

• Turnover net of excise was Rs. 534.22 crore versus projected Rs. 467.66 crore; operating profit was Rs. 79.78 crore versus projected Rs. 72.02 crore, and profit after tax was Rs. 41.79 crore versus Rs. 32.75 crore.

• Other income included a Rs. 5.88 crore net insurance claim; the prior year included Rs. 3.31 crore from assignment of textile retail outlet rights.

Outlook and guidance

• Jhagadia plant operations were being stabilised, with strong earnings growth expected in coming years; a 33,000-tonne/year flaker plant was planned for the last quarter of FY97.

• A 3,125 TCD sugar project in Uttar Pradesh was planned, with co-generation to be added later; sugar-sector plans were expected to begin in FY97.

• A ~1.3 million-tonne/year cement plant was planned subject to limestone quality and deposit estimates; independent power projects awaited clearer government policy.