FY 16 revenue at Rs. 5,841 crores; Q4 revenue at Rs. 1,333 crores
FY 16 Net Profit up 41% YoY at Rs. 297 cr (LY: Rs. 211 cr) Q4 FY 16 Net Profit at Rs. 51 cr (LY: -ve Rs. 40 cr)
Ø Chloro-vinyl business’ earnings recorded moderate growth driven by lower input costs and stable prices in the Chemicals business
Ø Sugar business turned breakeven from significant losses last year, led by lower cost of production and better prices in Q4
Ø Chlor-alkali capacity expansion to come on-stream partly in Q1 FY17, full capacity along with additional captive power by Q2 FY 17. Sugar co-gen expansion project expected to be commissioned by Q3 FY 17
Ø Long Term credit rating upgraded to AA- from A+ earlier. Short term rating affirmed at
A1+
Ø Board of Directors recommended Final Dividend of 40% - Total Dividend in FY16 at 160%
New Delhi, 10th May 2016: DCM Shriram Ltd. announced its Q4 FY16 financial results today.
FY’16 Highlights
Q4
|
12M - [Rs.cr]
| |||
FY16
|
FY15
|
FY16
|
FY15
| |
Net revenue
|
1,333
|
1,309
|
5,841
|
5,639
|
PBDIT
|
130
|
33
|
544
|
450
|
PBIT
|
107
|
7
|
445
|
340
|
Finance Cost
|
19
|
28
|
86
|
112
|
PAT
|
51
|
(40)
|
297
|
211
|
Key Developments and Outlook:
1. Net Revenues stable at Rs 5,841 crores (LY: Rs 5,639 crores)
2. PBIT improved substantially to Rs 445 crores during the year (LY: Rs 340 crores):
· Chloro-vinyl - earnings improved to Rs 350 crores from Rs. 317 crores last year driven by stable realizations in Chemicals, Lower input costs and better operating efficiencies which compensated for lower realisations in PVC. Further, additional levies on coal and power generation have raised cost of power for entire Chloro-vinyl businesses.
· Sugar business earnings improved to Rs. 88 cr from a loss of Rs. 68 cr last year as a result of :
o Subsidies from the UP State Govt. amounting to Rs. 85 crores related to Sugar season 14-
15, received and accounted for in the current financial year.
o Reduction in cost of production for the season 15-16 led by higher Sugar recovery (at
11.1% vs. 9.9% last season)
o firming up of sugar prices to Rs. 3031/Qtl in Q4 viz Rs. 2675/Qtl in Q3 16 and Rs.2664/Qtl in Q4 last year
o Last year there was inventory writedown of Rs. 98 crores due to negative margins of ~Rs.
500 per qtl
o Returns from the business are suboptimal
· Earnings of Shriram Farm Solutions and Bioseed stood lower YoY as deficient monsoons and stressed farmer economics adversely impacted sales volumes during the year. With normal monsoons expected in khariff 16, these businesses to register good growth
· Fenesta business’ earnings improved substantially on 18% increase in sales volumes during the year. Order booking also witnessed robust growth with a 63% and 18% increase in
‘Projects’ and ‘Retail’segments
o Retail segment’s revenue contribution was at 72% in FY 16, up from 70% last year
3. Finance costs stood lower at Rs 86 crores down from Rs 112 crores in FY 16 primarily due to lower cost of funds
4. PAT increased by 41% YoY to Rs 297 crores (LY: Rs 211 crores)
5. Subsidy o