India's DCM Shriram posts Q3 profit fall as costs soar

BASF India

20/01/2023 09:34

BENGALURU, Jan 20 (Reuters) - Indian chemicals-to-sugar
maker DCM Shriram  DCMS.NS  reported a 2.1% fall in
third-quarter profit on Friday, hurt by rising raw material and
power costs. 
    Consolidated net profit fell to 3.42 billion rupees ($42.16
million) in the three months ended Dec. 31, from 3.50 billion
rupees a year ago.
    "The operating environment is very challenging globally,"
DCM's chairman Ajay Shriram and vice chairman Vikram Shriram
said in a joint statement, adding that captive energy costs for
the company continued to be high, but would improve in the
coming quarters.     
    DCM, which competes with Pidilite Industries  PIDI.NS , BASF
India  BASF.NS  and Century Textiles and Industries  CNTY.NS ,
said total expenses jumped 27.5% in the quarter, led by rising
costs of material, as well as higher power and fuel costs.
    Raw material costs, which accounts for half of its total
expenses, rose 13.43% in the third quarter while power costs,
which constitutes nearly one-fifth of total costs, rose 11.56%. 
 
    The New Delhi- based company had said in its annual report
that the ongoing Russia-Ukraine conflict had led to cost
escalations in projects due to a rise in commodity prices.
    DCM's Chloro-Vinyl segment, which contributes the most to
its reveneue, logged a 7.87% fall in revenue.    
    It also declared an interim dividend of 5.80 rupees per
share.
($1 = 81.1240 Indian rupees)
 (Reporting by Ashish Chandra in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))