DCM Shriram Q2 Profit Zooms to Rs 46.30 Crore

New Delhi: DCM Shriram on Wednesday reported a sharp rise in consolidated net profit at Rs 46.30 crore for the quarter ended September 2014, on the back of lower expenses and finance cost.

The company had registered a consolidated net profit of Rs 1.41 crore for the corresponding period a year ago.

However, total income from operations during the quarter under review fell to Rs 1,428.46 crore as against Rs 1,689.86 crore in the year-ago period, the company said in a statement.

Total expenses came down to Rs 1,373.95 crore from Rs 1,652.24 crore last year. Finance cost came down to Rs 29.82 crore from Rs 42.29 crore.

Net profit also includes one-time positive impact of Rs 15.85 crore relating to a write-back of tax provisions of earlier years, the statement added.

"We are pleased to report a stable operating performance across all businesses, except sugar business. Sugar business continues to be a concern area. There is a strong need for a rational cane pricing system in UP," chairman and senior managing director Ajay Shriram said.

DCM Shriram vice chairman and managing director Vikram Shriram said that the Uttar Pradesh government has not finalised its views on the matter, which is badly hurting the sugar industry and cane farmers. There is a need to address this issue on an immediate basis.

"Our healthy cash flows and focus on reducing debt has also positively impacted the profitability by lowering the finance costs and strengthened our financials," he said.

Shares in DCM Shriram, on Wednesday, ended at Rs 227.95 apiece on the BSE, up 1.36 per cent from the previous close.