DCM Shriram (DCMSHRIRAM) Q4 99/00 earnings summary

Executive summary

• Broad improvement in the operating environment supported stronger performance, especially in plastics and chemicals; annual sales were Rs 876.28 crore and profit after tax was Rs 34.02 crore.

• Growth priorities included higher-value chemicals and PVC compounds, sugar capacity expansion, energy-efficiency services, and IT-enabled operations.

Financial highlights

• FY2000 sales Rs 876.28 crore; other income Rs 4.61 crore; profit before interest, depreciation and tax Rs 116.79 crore, versus Rs 99.83 crore in FY1999.

• Net interest was Rs 47.61 crore; depreciation and miscellaneous expenditure written off Rs 35.16 crore; profit after tax Rs 34.02 crore, versus Rs 21.62 crore.

• Interim dividends paid: 12% and 13% on preference shares, and 15% and 25% on equity shares; no final dividend recommended.

Outlook and guidance

• Sugar capacity at Ghaghara Sugar was expanded to 3,800 tonnes crushed per day, with further expansion toward 5,000 tonnes per day planned for the next season.

• Energy Services had completed two projects, with three more at implementation stages; management expected rapid growth in coming years.

• Strategic planning was due for completion by mid-FY2001, with business strategies to cover the following 3–5 years; e-commerce and wider SAP connectivity were also in development.