DCM Shriram Consolidated Ltd (DSCL) has posted 78% rise in net profit at Rs 34.69 crore for the quarter ended March 31, 2012, on the back of growth in fertiliser, cement, sugar and chloro-vinyl segments.
The seed and fertilisers manufacturer had reported a net profit of Rs 19.49 crore in the year-ago period, it said in a filing to the BSE.
DSCL's net sales in the fourth quarter of 2011-12 fiscal rose by 20% to Rs 1,290.21 crore from Rs 1,073.37 crore in the same quarter of the last fiscal.
In the 2011-12 fiscal, the company's net profit rose by 63% to Rs 174.48 crore from Rs 106.72 crore in the previous fiscal.
Net sales rose by 21% to Rs 4,923.67 crore compared to Rs 4,066.24 crore in the period under review.
The company reported gains in its fertiliser, sugar, cement and chloro-vinyl business, however, its farm solutions and bioseeds segments reported a decline in profit.
The profits in the Farm Solutions segment fell by 13% to Rs 8.2 crore due to higher costs in strengthening network and product promotion. In the bioseeds segment, the profit declined by 16.8% to Rs 18.7 crore on account of expenses being incurred for business development in new locations like Indonesia and Thailand.
{{/usCountry}}The profits in the Farm Solutions segment fell by 13% to Rs 8.2 crore due to higher costs in strengthening network and product promotion. In the bioseeds segment, the profit declined by 16.8% to Rs 18.7 crore on account of expenses being incurred for business development in new locations like Indonesia and Thailand.
{{/usCountry}}Its rural retail initiative, Hariyali Kisaan Bazaar, suffered losses due to due to outlets shutdown expenses, mark to market losses in the commodity/seed business along with slower sales growth than desired.
The company expressed confidence in the growth of its farm solutions and bioseed segments in the present fiscal.
The farm segment is expected to grow in the coming year, driven by growth mainly in the value added inputs category, it added.
For the bioseeds segment, DSCL said it expects the segment to grow in the coming year driven by high growth in India and Philippines. Cotton, Rice, Corn and Vegetables will be the major growth crops and it will compensate margin pressures through volume growth.
The company is an integrated business entity with operations in sugar, alcohol, fertilisers, cements, chloro-vinyl, organic and inorganic chemicals, rayon tyrecord, etc.
Shares of the company fell by 1.36% on Friday to settle at Rs 40 apiece on the BSE.