DSCL's own products sales up by 33% for Q2 FY2008

26 Oct '07

5 min read

DSCL, an integrated and diversified business group, with extensive and growing presence across the entire agri-rural value chain and chloro-vinyl industry announced its financial results for the quarter and half year ended 30 September, 2007.

• Gross sales for own products were up 33% to Rs.562 crs in Q2 FY2008 and 19% to Rs.1143 crs in H1 FY2008 respectively. Overall, the revenues were Rs.597.5 crs in Q2'08 as compared to Rs. 666.4 crs for the same period last year, primarily on account of discontinuation of imported bulk fertilizers trading, reflected in lower revenues of traded products segment.
• The company reported a loss of Rs.22.7 crs at PBT level (before exceptional items) for Q2 FY2008 as against a profit of Rs.15.6 crs for the same period last year. However,PAT for Q2'08 increased to Rs.607.1 crore, consequent to the sale of 50% rights, title and interests in SBM Land Redevelopment Project, as compared to Rs.10.8 crore in Q2'07.
• Sugar segment, reported a loss of Rs.26.7 crs for Q2'FY08 (last period profit Rs.9.40 crs), on account of significantly lower realizations and consequent, writedown of inventory. The business continues to influence the overall performance of the company adversely.
• Plastics business delivered better operating performance while Chlor-Alkali performance remained moderate in line with market conditions.
• Hariyali Kisaan Bazaar & Fenesta Building Systems, registered robust revenue growth, though continued to remain in planned investment phases, with a visible growth momentum.
• Fertilizer (Urea manufacturing) business, witnessed increase in revenues and profitability in Q2'08 in comparison with Q2'07.In Q2'07,the company's plant was shutdown for LNG conversion and maintenance.
• Revenues and profitability of Cement business saw a decline due to lower volumes, on account of a planned maintenance shutdown of the facility.

Commenting on the performance for the quarter, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said:

“We continued to deliver on plan operational growth during the current year. We are particularly enthused by the progress we achieved in Hariyali Kisaan Bazaar, where we also launched our first Hariyali outlet in Southern India.

Our Fenesta Building Systems business is also progressing as per plan and both these businesses are expected to emerge as key value drivers for the future.

The Fertilizer plant has started partial use of LNG as feedstock making the manufacturing process more cost effective.

Our Plastics business sustained a robust performance due to better realizations while the Chemicals business witnessed a moderate performance.

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