Scribd Logo
Upload

Welcome to Scribd!

  • Financial Results With Results Press Release, Results Presentation & Limited Review Report For Dec 31, 2015 (Result)

    Uploaded by

    Shyam Sunder
    3 views41 pages

    Original Title

    Financial Results with Results Press Release, Results Presentation & Limited Review Report for Dec 31, 2015 [Result]

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    3 views41 pages

    Financial Results With Results Press Release, Results Presentation & Limited Review Report For Dec 31, 2015 (Result)

    Uploaded by

    Shyam Sunder

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 41
    Deloitte Haskins & Sells Fenton: Bog 1D Tower 2 UF Gites City Complex DEF Gy Phase =I! Gurgacn 122 002 Haxyana Te: 491 (124) 879 2000 | | Tbe wstraa a7 208 | INDEPENDENT AUDITORS’ REVIEW REPORT ON REVIEW OF INTERIM. | FINANCIAL RESULTS | TO THE BOARD OF DIRECTORS OF | DCM SHRIRAM LIMITED 1. We have reviewed the accompanying Statement of Consolidated Unaudited Finan Results of DCM SHRIRAM LIMITED (“the Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its jointly controlled entity for the Quarter and nine Months ended December 31, 2015 (“the Statement”), being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This Statement which is the responsibility of the Holding Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard for Interim Financial Reporting (AS 25), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our 2. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, issued by the Institute of Chartered Accountants of India, ‘This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement, A review is limited primarily to inquiries of Holding Company personne! and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. 3. The Statement includes the results of the following entities: DCM Shriram Credit and Investments Limited, Bioseed India Limited, DCM Shriram Infrastructure Limited, Hariyali Rural Ventures Limited, DCM Shriram Aqua Foods Limited, Bioseeds Limited, Bioseed Vietnam Limited, Bioseed Holdings PTE Limited, Bioseed Research Philippines Inc., Shriram Bioseed (Thailand) Limited, Shriram Bioseed Ventures Limited, Fenesta India Limited, Hariyali Services Limited (Formerly known as Hariyali Insurance Broking Limited), Shri Ganpati Fertilizers Limited, PL. Shriram Seed Indonesia and PT. Shriram Genetics Indonesia and a jointly controlled entity viz. Shriram ‘Axiall Private Limited. 4. We did not revicw the intcrim financial statements of 16 subsidiarics and a jointly controlled entity included in the consolidated financial results, whose interim financial statements reflect fotal revenues of Rs.37.87 crores and Rs.127.78 crores for the Quarter and Nine Months ended December 31, 2015 respectively, and total loss after tax of Rs.11.05 crores and Rs.41.16 crores for the Quarter and Nine Months ended December 31, 2015 respectively, as considered in the consolidated financial results. These interim Financial statements have been reviewed by other auditors whose reports have been furnished to us by the Management and our report on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, jointly controlled yb entity is based solely on the reports of the other auditors. | Deloitte Haskins & Sells [As per the policy followed by the Company for preparation of quarterly results, the sugar off-season expenditure amounting to Rs.35.22 crores for nine months ended December 31, 2015 (after absorption of Rs.0.15 crores during the quarter } has been deferred for inclusion in the cost of sugar to be produced in the remaining part of the financial year. As a result profit after tax for the quarter and nine-months ended December 31, 2015 is higher by Rs.0.31 crores and Rs.32.45 crores respectively (Refer Note 1), Based on our review conducted as stated above and based on the consideration of the reports of the other auditors referred to in paragraph 4 above and except for the possible effects of the matter described in paragraph 5 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the aforesaid Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Juding the manner in which it is to be disclosed, or that it contains any material misstatement, For DELOITTE HASKINS & SELLS Chartered Accountants (Firm's Registration No. 015125N) ¥ pahggrrnat jay Agarwal Partner (Membership No. 094468) NEW DELHI, February 2 , 2016 we ‘CONSOLIDATED. DCM SHRIRAM LisMITED. (Formerty DEN Shriram Consolidated Limited) Regd, Offloe : St Floor, Kanchenjunga Builing, 18, Barakharnba Road, New Deb - 170.001 CIN: L 74900 1986P1.£034525 E-malerasponseghaemehnear com Webske: wav semnnram com Te} 1% 25818601 Fax: 91 11 28916072 UNAUDITED CONSOLIDATED FINANCIAL RESULTS. i FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2015 | ae (Rs. in Crores) | rier Ended Nine Months Ended_| Year Endod Bee cuca 31.12.2018 | 30.09.2018 | 31.12.2004 [31.12.2018 31.42.2014] 31.03.2015 TH @. a a & & see Unaudited | Unaudited | Unaudited | Unaudited | Unaudited] —Auaitod (Gross Sales Tsieesp ears] 126898) aeseco | 2.40269 | 505040 Less. Excise cuty eiss| e309} “sseo| tots} ‘1a037| “244.00 INot Sales’ income Fam operations Tas7t0) Tas.e4 | 1,168.25] 447434 | 4312321 Beonst othe: Operating income 5.83 774 750, 3387) "1781 32.87 Tota income from operations 7283 | 1ave.36 | 7767.05 | as08 21 | 920.95 | Seso.1 Expenses, {a} Cost of mateiss consumed sesos| tzer| a7zse| 95008} 95269] 1.24015 | kb) Purchaces and reited cast stockin-trade 30686 | 96085] 33522) 1.80305] 1.2849] 1562.51 t Kc} Changes in inventories of fished goods, workin progress and stockintrage cov73] 163.97] e148] te606| 37245] 2089 ks) Ermployee benefis expense vzzo7] 42362] 11128 356.23] aaes1| 447.15 fe) Depreciation and amortisation expense pars} 2568] 687| 7565] aae7| 110.20 KD. Power, ful etc 17ag3| 19389] 7101) saga] 50487] 67519 lg) Other expanses saarz| 12a26| 180.18) 478.96 50850) 688.50 {h) Gost of own manufacturee goods capitalised (a7 = * .05)| (aa) 0.03 Tolal expenses qi96.32 | 1,385.34 | 748875 |—az00.37 | 4038.26 | 6,360.65 Profit from operations before other income, nce costs and tax sect| _ssc4| _1130| so74| 20168 | 200.53 [otter income 1021 875[ 1627 | 9036 ater] 51.58 Profit bofore finanes eosts and tax 76.62 | 95.79. ~27.57 | 330,20 | 355.85 340.11 Finanoe costs 1430|_2652[—2eor|__e7.i3|__ saat | 111.78 Profit before fax zag | 6927 1.60" Sartor [1 ra4e aa | Tae 36 Tax expense ~Cartent year 1.96 eat] (2586), 2501] 14.21 i180 _- Tax adjustments related to earl years : - = =| (15.85 576 Net Brofit BOA | we. 96 | TE AB GB | so.oe [BHO Profit before interest, depreciation and tax \eei0TA) soost} _sata7] _sase| sizes] _atzze| aso. (Cash Profit 93.42] g7.at TT 86.00)| 798.80" atecee L310 77. Pani-op Equly Share Capital weed] a2ea] zea] — sae] s2ee] 2.64 \face value of each share - RS. 2) Reserves excluding revaluation reserve 11825.00 Basic/Diluted- EPS (Rs. per equity share] ae 3H Tee es eae | 12 97 Segment wise Revenue, Results and Capital Employed undor Clauee 41 of Listing Agreements consouparen (8s. in Groves) Guster Ended Hine Menthe Ended —[_ Year Ended SEASDOTS | 30.09.2015 | GARI | Fi.ra.z018 | 31.12.2078 | 34.03.2075 PARTICULARS ff a o) ‘al e (6) Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited Segment Revenue | (Crlaracvingt 2ae4s| 21568, 295.69 gsg00| 1,242.28 Sugat v6.18] 47824 169.57 yios2| 1037.13 Sharam Fearn Solutions s7e69| 486.72 261.85 | sasa03| 1416.65 Bloseee 4642 31.55. 2962 492.61 ‘570.20 Feri 2926) 23744 21189 586.11 8.18 ‘cement 3297 3839 3122 102.92 3711 Haya Kisaan Sazaar 9659 e333 1987 268.23 485.54 Oopees nar 7370 e711 197.88 255.81 Total GFE ASO RCE A NCTC KT AT Less: Inter segment revenue 14.98 367 897 181.82 201.11 21981 “Yatalincome fram operations TRESS | AAS |__AASTOE | A SORAT | aBOO OS | BRELTS Segment Results Profthiess) (before unallocated expenditure, finance cost an ts Chlore-Vinyl 9357 75.78 e001 253.18 244.91 317.08 Suger (99) 12 @1.00) 30.81 (62.6) Shviram Farm Solutions 1788 16.38 71 55.05 70.80 8716 Bicseed 20:36] 8.06) a7) 25.84 4291 3212 Fertis 16.90 ‘aot 18.07 24,89 36.03 3736 coment Ga] 05, 622] ean] (3.98) 13] Haiyali Kissan Bazaar 082 08) 37 or] 3.86 478 omnes 127 +60 on4 5983 (2.48) e23] Tota! Sao | aT aT THE BEST Tee Lee 1} Finance costs 1439 2852 26.07 ors Be2t m8 i Other unallocable expenditure net of unalzeated income 6 21.89 14.00 5495] 43.08 6148 oft before fax was e927, 150 Bro Baas 836 ‘Segment Capital Employed Chiore-Vinyl soret| S387 486.20 597.97 486.20 495.01 Sugar ssr73) 493.13 607.49 e577 507.49 Tea hiram Farm Solutions azar) 56720, 10490 22237 e490 15801 Biceses 41380] 35096 4sz49| 413.50 452.49 278.35, Fertiser sasez| 247.64 32778 346.82 327.78 178 Cement 395 992 927 8.95 27 ost HoriyalKissen Bazoar saiz2| 14867 17521 vate 17521 498.20 Otrers rs] 139.07 15142 138.75 15142 151.87 ola ZSE ST | RABE [OATH | DEAT ROA SSS | | | | | NOTES TO CONSOLIDATED RESULTS | In accordance with the accounting poliey consistently followed by the Company for interim results, the off-season expenditure aggregating Rs. 35.22 crores for the nine months period ended December 31, 2015 (after absorption of Rs. 0.15 crores during the quarter) has been deferred for inclusion in the cost of sugar to be produced in the remaining part of the financial year. The corresponding deferred amount for the quarter and nine months ended December 31, 2014 was Rs, 5.44 crores and Rs 37-31 crores respectively. ‘The Company had taken eredit of Rs 59.82 crores during the quarter ended September 30, 2015, pursuant to notification of eane subsidy of Rs 20/- per quintal for sugar season 2014-15, by Government of Ustar Pradesh 3. Some of the business segnients are of seasonal nature and accordingly impact the results in the respective quarters 4. The standalone results are available on the Company’s website www.demshritam.com, The particulars in respect ‘of standalone results are @s under Rs. in crores Particulars (Standatone) ater ended Nine months ended | Year ended Biin2018 | 30.00.2018 | 31122078 [31.12.2015 | 31.12.2018 | 31.03.2015 et solevineome from operations [124034 [1400.87 |" 1180.83 [4401.05 [4297.74 | 5469.46 Profit bene tx 7sa3|__s7.37 | 2383 sal | 27417 257.09 Net Pro 7.49] _-B1aS | 80.17 | 28728] 377d 241.93 Pooft belore interes, deprectaion | 1141 135.08) 7348] 449.98] 438.63 473.39 tnd tnx (EBIDTA) (Cash Profi Toaaa [10527 | 7a0a | 367.83 | 34037 37 5. Previous period figures have been recast, wherever necessary. 6, The above results were approved and taken on record by the Board of Directors in their meeting held on February 2, 2016. teil Review ‘The Limited Review, es required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been completed by the Statutory Auditors. The Limited Review Report for the quarter and nine ‘montis period ended December 31, 2015 does not have any impact on the above Results and Notes in agaregate except in respect of mater explained in note I above. For and on behalf of the Board Place: New Delbi asayls.SI M Date: February 2, 2016 Chairman & Senior ing Director DIN: 00027137, Deloitte Haskins & Sells ‘fcr Sing 1, Fone 8 DLF Cyber City Complex DLF City Phase - Gurgacin - 122 002 Haryana Tet +91 (124) 679 2000 Fax: -91(124) 679 2012 INDEPENDENT AUDITORS’ REVIEW REPORT ON REVIEW OF INTERIM FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF DCM SHRIRAM LIMITED 1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of DCM SHRIRAM LIMITED (“the Company”) for the Quarter and nine Months ended December 31, 2035 (“the Statement”), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Josure Requirements) Regulations, 2015. This Statement which is the responsibility of the Company’s Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standards for Interim Financial Reporting (AS 25), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to issue a report oon the Statement based on our review. 2. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’, issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of Company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion. \ | | | i 3. As per the policy followed by the Company for preparation of quarterly results, the sugar off-season expenditure amounting to Rs.35.22 crores for nine months ended December 31, 2015 (afier absorption of Rs.0.15 crores during the quarter ) has been deferred for inclusion in the cost of sugar to be produced in the remaining part of the financial year. As a result profit after tax for the quarter and nine-months ended December 31, 2015 higher by Rs.0.31 crores and Rs.32.45 crores respectively (Refer Note 1). 4, Based on our review conducted as stated above, except for the effects/possible effects of the matter described in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the aforesaid Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including the ‘manner in which itis to be disclosed, or that it contains any material misstatement. For DELOITTE HASKINS & SELLS Chartered Accountants (Finn's Fegistrat ‘Xo. 0151259) y Agarwal Partner (Membership No. 094468) eee ee ee eet DOM SHRIRAM LIMITED (Forneryy DCM Shriram Consolidated Limited) FRogd. Ofc th Flee, Kenchenjunga Bulleing 1, Sarakhamba Roed, New Delhi- 110004 Cine: LrageeD.1999°1.0054925 & mall feeponee@demshecam.com Website! winx emehieam.com Tak OF 11 25316801 Fax 01 14 2981807: RESULTS STANDALONE FOR THE UN (fs. in Crores) | ‘Guartar Endod ‘Nine Months Ended | Year Endea! tana st.az2018 | 90.09.2018 | sxazz0%e | 34.12.2018 | 21.2200 | 31.09.2018 a. @, B. i o @. z Unaudited | -Unauaied | Unaudited | Unauaited | Unauelted | Aueited ‘Gross Sales so0a2 |” 140218) 1.28500] 486.10) 440343) 5.00126 Lass: Excise Duy soas| sisi] sar7| sos) 75.5 | art Net Sates! income from operations Taease | —ta00a7| 48083) ea0ios | a.zer.76 | —sacoae | omer Operating income 527, 7.38, zst| “s260| 1577] o0.72 “otal Income from operations zasst| faves | ~“iieasr | —easo.ra| —apaner | 650046 Expenses (a). Cost of mate consumed sto] 15077] 48556] ose | —sor.ea} 1,700.72 (0) Purcracos and relnod cast -etockin-ads sizso| 55137) 33663] 160753] 1.20812, 1800.08 {61 Changes in inventones of fished goods, lecokin progress ans socksntce coscn] 1800] rsa] twee] sae) 2296 8) Emgoyee benefis expanse vn496| 11267| ronan} saree] aia73| 418.74 {) Depreciation and amestisation expense zsi7| 268/268] rae} atza| 07.00 Power, el ee weas) 19350] 17065 saz.06 | 503.75| —7a.2z Otrer expenses vsao7| 11825) ta071] aur] 472.08| 45.77 ol own msnutsc.se6 goods coptatead (0.70) : : (1.08 oa] (o.09y ‘Tolal expenses ise a4 | 4s0aad | aaes.ar | —ages.e2 | ~3Ssoa7 | Sieo.se Profit trom oporations Before cif incemé, nance costs and tax qezt| seas, ssoa| _ssesz| __s1264| _s00.02 ‘ther eam ags7| tar | sear] ans] aa ro | 657. Profit bofore finance Coste and ax ‘Sia | ——toaz| svar | rsa | "aera 366,39 Finance costs near] 2305|"—2se6} oss] 6323 | 108,30. “Profit before wi esa [e737 | gags | asian | bra.t7 | 57.00 Tax expense ‘Curent year 204 sez] @sen} —a4sa| 12.08 _- Taxagustments reste to estar yaars 7 7 15.85) Rei Pront We) was ga [ar ze | arr08 _ Profit botoreintorast, dapreciation and tax (EBIOTA) ssai|__12808| _7505| _aaose| 438.03, ‘Cash Prosit 10422 | t06.27)| yaa | ge7-85 [340.34 Paid up Equity Share Gopal aeoe] aoe] az0a} ston | az.04 (lace vaue ofeach share - Rs. 2) _Hoserves excusing revalvaten reserve saree sllDilutod EPS (Rs. par equity hare) 7 Soe soe] as] as] 4 08 Sogment wise Revenue, Results and Capital Employed lund Clause 41 of Listing Agreements (Rs. in Crores) PARTICULARS ‘Guster Ended Mine Wonthe Ended | Year Ended 31.12.2018 | 30.00.2016 | 3i.122014 | 34.12.2018 | 34.42.2014 | 31.08.2016 ch @ @) @ @ 6) L. Unaudited | Unauated | Unauaited | Unausited | Unaudited | Audited Ja. Sogment Revenue Chioro- Vint zeae] sises] —2ea69| 280s] asco] szaz27 Sugar sz673| 178.24) —te9.57| gover} 71032] sosr.73, Sham Farm Solutions sice| aa5y0] —2eis3] 14758 | 1.26022] tiai682 Biosee 440] 17665] 3553] ‘auaat | aeag7 |] 454.38 Feriier zeozs| za7as| area] azz] see] 726.8 cement sass] 36.38] saz | toass| © oz] asm Hariyal Kisaaa Bazaar ecss| 333] 1987] zas0| © 360.23) | 405.85 others 55.85 soss| 4901] 6046 —147@3| 19542 Total TREES | FARE | ASOT | ORE | ETAT TOET ‘Less: Inver segment revenue 1198 07a sea] rzs0] 180.64) 205.15 Toul come from operations: TERT | AOE | A TORST | RTE | ADA | BOOTS fa. Segment Results Profiloes) (before unalocated excendiixe, finance cost and tax) ‘Chora Vinyl assr| 7576| sor) zeato) aaa} atTa3 ‘Sune G20] 4a12]— @r.00}aaet] x28] ee. ‘Sharam Farm Solutions 702 x50] 2247] 820| 7078| e700 Bicseed eon] @sz0] —azsn} 5851 ea| 308. Ferilser 4690 1291 vaor| ass] asta] 57.48 Gement Goa 108 Gea) Gant G80] 13) Hetyel Kiszan Bazasr 082 19} vat 03] 220 ‘310 omer 42 130 oe 433 425} G50) Total aes | woe | sa | a |e | Less: 1) Finance costs 1681 zaos| 25.08] ssa] esa] 100.30, |) Other unatocable expenditure net off unatocated income 64 1987 rsa] azg8} se] 55.20 Profi bate ax. TEAS [aa | TBR | TPT | Je Segment Capital Empieyed Crlorevey swass| ss7ze| ase?) se36 | aa.a7} 496.55 Sugee ssr7s| 4sats) ao74) ss773] odo) 784.93, Sharam Farm Solutions aiass| sstes| 17756] 31660 17755) 148.32 Blosees zsoz3| 2180} sts} 50.23) siese| 24a. Fertiliser sasaz| 2e7sa| sa77a| sasaz| 27.78) aan79 Gemont ‘92 927 2.95, 927 31 HatyallKisasn Bazaar tasos| 17330 14053] 17330) 163.62 otners esez} sas} 69.35] as93| aa, Tota ZUaeTE [AeA | 2AOSSS | RIOT [BOSE | RSTROD, we NOTES TO STANDALONE, LTS: |, Inaccordance with the accounting policy consistently followed by the Company for interim results, the off-season ‘expenditure aggregating Rs, 35.22 crores for the nine months period ended December 31, 2015 (after absorption of Rs, 0.15 crores during the quarter) has been deferred for inclusion in the cost of sugar to be produced in the remaining part of the financial year. The corresponding deferred amount for the quarter and nine months ended Deceraber 31, 2014 was Rs, $44 crores and Rs 37.31 crores respectively. ‘The Company had taken credit of Rs $9.82 crores during the quarter ended September 30, 2015, pursuant to notification of cane subsidy of Rs 20/- per quintal for sugar season 2014-15, by Government of Uttar Pradesh ‘Some of the business segments are of seasonal nature and accordingly impact the results inthe respective quarters, 4. Previous period figures have been recast, wherever necessary, ‘The above results were approved and taken on record by the Board of Directors in their meeting held on February 2, 2016. ged Review The Limited Review, as required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been completed by the Statutory Auditors. The Limited Review Report for the quarter end nine Imont period ended December 31. 2015 does not have any impact on the above Results and Notes in aggregate except in respect of matter explained in note | above, For and on behalf of the Board Place: New Delhi AJAY S. S} Date: February 2, 2016 ‘Chairman & Senior Mahaging Director DIN: 00027137 & y & DCM SHRIRAM Growing with trust DCM Shriram Ltd. Q3 & 9M FY16 - Results Presentation | | Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. DCM Shriram Ltd. will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect ‘subsequent events or circumstances. All figures are consolidated unless otherwise mentioned Table of Content Title Slide No. aaron B 3 FY16 Financial Snapshot 5 Cages eee ne ‘9M FY16 Financial Snapshot fagioceuewencieuieucs Q3 FY16 - Performance Overview & Outlook rr Businesses 14-16 ra Input Businesses 18:21 Hariyaali Kisaan Bazaar oases Bi Fenesta Building Systems 25 Ronee DCM Shriram Ltd. - Q3 & 9M FY16 Results Presentation Q3 FY16 — Key Highlights 1. Net Revenues increased by 5.5% YoY to Rs 1,263 crores (LY: Rs 1197 crores) a. Sales of Buik Fertilisers up by Rs 104 crores b. Sales of Hariyali (Fuel Outlets) down by Rs 23 crores and Sugar by Rs 43 crores 2. PBDIT increased to Rs 101 crores, up 85% YoY, contributed by | a, Sugar business - with lower losses, primarily due to lower inventory writedowns, a result of higher current prices and lower cost of production led by better sugar recovery b. Chloro-Viny! business ~ Improvement in earnings vs. same period last year is because in Q3FY15 there was unprecedented drop in prices. In the current quarter the prices are lower compared to | beginning of the year, impacting margins ©. Bioseed business - losses stood lower vs. last year as last year had a one time inventory writeoff in international business | d. Cement business’ had lower losses driven by lower input costs vis-a-vis last year 3. Subsidy Outstanding stood higher by 33% to Rs 584 crores as compared with on Rs 441 crores as on Deo 31, 2014 4. Finance costs stood lower at Rs 14 crores down from Rs 26 crores in Q3 FY 15 5. PAT increased to Rs 60 crores, up 121% from Rs 27 crores in Q3 FY 15 6. Net Debt as on Dec 31, 2015 stood at Rs. 435 crores vis-a-vis Rs. 432 crores as on Sep 30, 2015 and Rs 491 crores as on Dec 31, 2014. Balance Sheet continues to be strong Secs ecg Q3 FY16 — Financial Snapshot Revenues EBITDA Depreciation Finance Costs oon PAT 7 60 28 3 FYIS asFyi6 Oa FYIS OsrYis aarris Os FYIG Note: All figures in Rs. Crores DCM Shriram Ltd. - Q3 & 9M FY16 Results Presentation Q3 FY16 - Segment Performance Pore PBIT QSFYIS Q3FYIE road road a Uiolad Ce lado ag Cchioro Viny! 237 5s oo | 0s suger tous 1282 asa) | (21.0) (4.8) : Agri inputs seas oss za | a tk «Sta Sham Farm Solutons «284.8 ava9 we | e778 at.) ~ Bioseed 29.5 46.4 ace 57.2 (34.7) (20.4) : + Fertiliser 214.5 229.2 84 18.1 16.9 (6.5) ‘Cement 31.2 33.0 5.6 (6.8) (3.7) - Hariyali Kieaan Bazaar 9 88 aay | 92 0s (28) others ea iz_ ao |_os 13 : Total 1,206.0 4,277.9 ar 8 94.2 Less: Intersegmont Roane 70 18.0 1149 Less: Unallocable Gas . ap expenditure (Not) Rs. crore ee Cees ag 204 282 (248) 12 22 Bt a 47 (17 (a9) Total 4A971 1.2629 85. 27.6 768 178.6 as 7a ea) any 26 os 0.2 18 7) 2a ed | | | 9M FY16 — Financial Snapshot Revenues 4,380 4,508 omevis oM FY 16 Finance Costs ital 67 om FY15 omFvi6 Note: All figures in Rs. Crores eS MeMe ener EBITDA Depreciation a7 ata = © a " a OM FY15: OM FY16 OM FY15, OM FY16 e PBIT PAT iad 251 246 OM FYI. oMFYt6 OM FVAS OM FYIG A FY16 Results Presentation | t | | | j | | | | 9M FY16 - Segment Performance Revenues Gis faa Rs, crore Sa amevis. ourvie 2OY%aurris amevis YOV% omevis omevs6 Chior Ving wo aso) | meas aa) ke ‘Sugar 710.3 608.6 (14.2) (12.5) 30.8 : i (1.8) : 61 ‘gt Inputs zarr asia 46 | 1487 1068 (202) | 67 42 ~ Shriram Farm Solutions 1,169.1 1,475.9 70.8 “564 (20.8) 61 38 -basees sas 42 we” me em | arse - Fertiliser 856.1 622.3 1.9 36.0 24.9 (28.9) 63 40 ‘Cement 102.9 102.5 (0.4) (4.0) (3.5) + (3.8) (3.4) Heriy e228 (203) | 39 On : 10 (00) oters tra aso a? | a) ss | ey Toul aso aso 98 | sree ame 42 | es ae Less: lfersagment mu 8 ae Less: Unalsable ee eee ane ee ee ‘Current PVC prices have seen a significant drop compared to prices in Apri 15. Chemical prices also ‘nave decined in the same period, Input costs are dectining a a slower pace New taxes and levies on coal based power are imposing ecidtonal burden ‘Overall margins dectining inthe current year, though better than Q3 FY 15 wherein the dectine was very sharp led by unprecedented low prices Increase in Capital Employed of the segment is due to the undergoing capacity expansion at Bharuch ‘+The Business is vulnerable to cheaper imports, with limited custom duty protection. The damestic prices ‘will follow globe! price trends Expect higher Chlor Alkali volumes in Q1 FY 17 as the company commissions its expanded capacty at Bharuch New captive power plant at Bharuch to start by Sep 2016 Maintenance sutsown In Chemicals and PVC businesses planned in Q4 FY 16 at both ho Kota and haruch plants Lower revenue in Q3 FY 16 vis-awis last year was primarily due to lower volumes and realisations, a result of lower opening inventory this quarter (Operating losses stood lower during the quarter vis-8-vis last year on account of lower inventory write- ‘down, a result of higher sugar recovery in the current season and improved current ealizations. © Sugar recovery in the current season til Dee stood higher at 10.7% vs, 9,9% last season ‘©. Current prices are around Rs 3,000/Qt! only marginally less than the cost of production Outlook Recently announced UP Cane policy isin line with Isst year's scheme; SAP unchanged but State Govt's subsidy reduced by Rs 5/GH! of cane consumed Establishing cene and sugar price linkage will provide long term direction tothe industry ‘Sugar production in India is expected to be less than last year. Govt. / Industry pursuing for exports slso ‘Sugar co-gen expansion project is on schedule, to be commissioned before the next sugar eeason Sieae) Q3 FY16 - Performance Overview & Outlook Revenue increase during Q3 FY 16 vs. last year was due to higher sales volumes of bulk fertlisers ‘Value Added! inputs vertical’ revenue stoad lover by 5% YoY on account of © Delayed sowing n the Rabi season amid distressed farm economics that adversely impacted off- take of crop care chemicals and micronutrients during the quarter Lower business earnings during the quarter was primarily on account of wesker margins in Bulk fertilizers and lower sales of Value added inputs Business’ capital employed increased substantilly due to rise in subsidy outstandings and higher inventory of Duk fortlisers Outlook ‘Overall performance will depend on weather pattem in Kharlf season Central Govt has recently issued Cotton Seed Price Control order. Govt's decision in the mater will affect the performance ‘High subsigy outstanding n bulk tertiizers is resulting in higher working capital requirements Company continues to focus on marketing inatives and efforts towards growing distribution network ‘demand creation and product portfolio to drive growth aver medium term for Value Added’ business vertical G3 FY 16 revenues increase was primarily due to higher sales (Corn) In the international business ‘Domestic business’ revenue also stood higher due to higher sales of vegetable seeds during the quarter Vie-devis last year Eamings improvement was primarly in Intemational operations, as corresponding quarter fast year there ‘was one time inventory writeott Weather plays a vital role in performance of this business, which has been adverse in our areas of ‘operations, impacting growth Outlook Central Govt's decision under the newly promulgated Cotton Seed Price Control order will affect the performance Business expected to witness growth in the medium term dtiven by high focus on R&D and a strong product pipeline New produc offerings and increasing marketing efforts to drive growth in operations Ceueu Q3 FY16 - Performance Overview & Outlook + Ineeatein 03 FY 1B rovens as cue ohare voomes vs asyser = Inga 16 energy eft sod beter bon sequal and vos year * amingsteets tom atorancoby Gor. of Re 20Tet of geese mare man *Tananng mene ftceny ron under he new Utes poy eco re 201 whe cn + Sita oustanding substantial higher vif st yor. ost of igh pole gas rcs utook + Contuous ecu on mprovenentin era ficlencies + loner ssc osandg ain to donrard ress on erings du tiger farce as + Reenon rice re tn no win ctnreses noacing earings ths busnes Higher revenue during the quarter was due to higher sales volumes ‘+ Cement realizations continue to remain soft and stood 2% down sequentially = Improvement in earnings during the quarter vs. last year was on account of higher revenue and lower cost of key input materials '| Revenuas from fue! sales oniy ‘+ Lower earings is on account of lower sale of propertios ‘= Fenesta business! revenue stood higher during the quarter primarily due to higher sales volumes from the ‘Projects’ segment Order Booking witnessed strong growth for both ‘Retail and ‘Project’ segments in @M FY 16 * Business operations continue to be positive at PBT level Management’s Message Commenting on the performance for the quarter, in a joint statement, Mr. Ajay Shriram, Chairman & Senior 19 Director, said: Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managi "The company reported a satisfactory performance with stable operations and positive improvements in sugar margin structure and outioak The policy framework for Sugar business is moving in the right direction with the Govt. and industry pursuing export of surplus sugar, developing a rational cane pricing policy linking sugarcane and encouraging the production and use of ethanol. Weather pattern has also helped in improving the situation. The Govt. and industry has to carry forward the steps being undertaken. Establishing cane and sugar price linkage will provide Jong term direction to the industry. Chloro Vinyl business is directly impacted by the Global conaltions and faces threat from low priced imports. We continue to focus on improving our cost structure and scale fo strengthen our competitiveness. Growth of our Agriinput businesses is affected by adverse weather conditions. We are further strengthening our product portfolio and intensifying our marketing efforts. Our capex programs in the Chemicals and Sugar businesses are progressing well and will add to company's performance from FY 17 onwards. Our healthy balance sheet and reasonable cash flows enable us to comfortably fund our ongoing capex programs and give us flexibilty fo take up future growth projects* Segmental Overview © Shriram Farm Solutions| © Bloseeds TNO\, + chlor ta i Chioro-Vinyl Sareveeete te Businesses | }+ Calcumcaride | = | + Aare nous | © Ferns | | | + Sugar + Fenesta Building Systems Other Businesses fay’ Cement + Polymer Compounds, + Hariyali Kisaan Bazaar eee eee aaa Chloro Vinyl Business eae Revenues (Rs. cr. ET Q3FY16 296.5 83.6 a3 FY1S 293.7 60.0 % Shift 09 39.3 OM FY16 928.0 253.2 OM FY15: 934.0 244.9 % Shift (0.6) 34 ‘The Chioro-Viny! business of the Company has highly integrated operations with multiple revenue streams and 143 NW captive power generation facilities. Chlor-Alkall operations are at two locations (Kota — Rajasthan and Bharuch ~ Gujarat), The multiple revenue streams enable the Company to optimize operations in a manner to maximize the contribution per unit of power fe eee aaa Chlor-Alkali eee Gara i ee Geen eeute) | (Rs/MT) (Rs. cr.) | “osevis oa71 23.853 1824 385 Q3FY15 66,808 21,873 1615 33.3 % Shitt 23 106 13.0 786 omFY16 208,034 24,184 550.9 179.5 om FYt5 193,078 24,069 B14 131.8 1% Shift 62 08 77 36.2 Chior Alkali business’ revenue stood higher by 13% YoY. Last year prices witnessed a sharp drop in the third quarter 1 Eamings stoad higher by 78% YoY due to prices being higher, although QoQ the prices are lower, Lower costs onus of key inputs and better efficiencies vs, lest year has helped, although sequentially the fallin prices is more than eee the decine in costs © Higher power costs at Kota plant due to the levy of duties and green cess moderated the earnings increase ins FY 16 * Increase in Capital Employed ofthe segment is dus to the undergoing capacity expansion at Bharuch | | | + The domestic prices wil folow global price trends. There is limited duty protection from cheaper imports * Business focused on efficiency improvement intitives to futher optimize its cost structure ‘+ Expect higher Chior Alkali volumes in @1 FY17 as the company commissions its expanded capacity at Bharuch 1+ New captive power plant at Bharuch to start by Sep 2018 ‘+ Maintenance shutdown in the business planned in Q4 FY 18 at both the Kota and Bharuch plants Pema Plastics Gerrans Q3FYI6 OS FYIS % Shift OMFY16 OM FY15 % Shift ace Cr recs peu Financial ee eee Peete CP g ete Cee CeCe ee Be a Cay a GS) 13,272 63,148, 6,470 43,421 1140 244 18,789 65,221 5,438 43,408 1922 26,7 (15.9) (32) 13.0 00 (13.8) ee) 45,058 65,363 16,688 43,139 372 73.7 40,576 72,686 16,252 43,412 422.6 113.4 (33) (10.4) 27 (0.6) (10.7) (949) ‘+ Lower sales volumes and softer realizations of PVC Resins led to dectine in revenue vis-2.vs last year ‘+ PVC realizations are on a dectining trend in ine with movementin global prices ‘+ While carbon material and lime costs stood lower vis-é-vis 2 FY 15, that of power inereased due to increases in coal fright, electricity duty and Green cess imposed by the Central and State Govts, during ‘budgetary announcements, offsetting the benefit of other loner costs "Global PVC prices are trending lower = Business focused on improving cost structures to support margins in the business * Maintenance shutdown inthe business planned in Q4 FY 16. oes | Sugar Particulars | | Q3 FY16 Qs FY15 % Shift OM FY16 ON FY1S % Shite i | | 1 1 cue reer fetta Cremeans Operational farrell ee eee eee ort flu fe eau (Lac Qtls) Gan) (Rs. cr.) (oie) (Rs. cr.) 3.0 2675 126.2 (19) 587.7 48 2,887 1698 21.0) 607.5 (36.5) 73) (25.8) - (82) 20.9 2,497 609.6 30.8 557.7 203 3,100 710.3 2.8) 607.5 28 (19.5) (14.2) - 2) * Lower revenue in 3 FY 16 was primarily due to lower Volumes, which was due to lower opening inventory at the beginning ofthis quarter as compared with last year ‘Operating losses stood lower during the quarter vs-.vs last year on account of loner inventory writs-donn, resuit of higher sugar recovery in the current Season and improved curent realizations © Sugarrecovery improved to 10.7% vs. 9.996 in QS FY 15 ‘© Current prices are around Rs 3,000/AtI only marginally less then the cost of production + Recently announosd UP Cane polcy isin line with last year’s scheme; SAP unchanged but State Govt's subsidy reduced by Rs 5/Qil of cane consumed * Establishing cane and sugar price linkage wil provide long term dlrection tothe industry * Sugar production in india is expected to be less than last year. Govt. /Industy pursuing for exports also ‘+ Sugarco-gen expansion projects on schedule, to be commissioned before the next sugar season aa id eae Agri- Input Businesses ‘The Agri input business contributed to 52% of the total quarterly revenues of the Company. The Company can capitalize on its long standing understanding of varied Agri businesses and the rural consumer, its established infrastructure; services & product portfolio; and a deep rural presence. The Agri Input Business includes: | Company continues to focus on these businesses given the huge opportunity in this area where the | ' Pee eed Shriram Farm Solutions Cee | Particulars oreo Gs} Tees Q3 FY16 378.9 179 322.4 Qa FY15 281.5 22.7 1849 % Shitt 34.6 (21.4) 743 oMFY16 1475.9 56.1 322.4 om FY 15 1,169.1 708 1849 % Shift 26.2 (20.8) 743 i ‘The portolio comprises Value-added products such as Seeds, Pesticides, Soluble Fertiliser, Micto-nutrients etc. along with Buk Fertiisers (DAP, MOP, SSP). This business is Seasonal in nature and the results in the quarter are not Teprasentative of annual performance + YoY Revenue increase during Q3 FY 18 was on account of higher sales volumes of bulk fertlisers "Value Added’ inputs verticals revenue stood lower by 6% YoY on aocount of © Delayed sowing in the Rabi season amid distressed faim economics that adversely impacted olf take of Coca crop care chemicsls and micronutrients during the quarter reed Lower business earings during the quarter was primarily on account of weaker margins in bulk fertzers and lower sales of Value added inputs ‘+Business’ capital employed increased substantially due to rise in subsidy outstanding and higher inventory of bulk fertisers = Overall performance will depend on weather pattem in Kharif season Sms Cont! Govt has roconty issued Cotton Seed Price Control order. Govt's decision in the matter will affect the performance *+ High subsidy outstanding in bulk fertilizers is resulting n higher working capital requirements * Company continues to focus on marketing iniatves and efforts towerds growing distnbution network, demand Creation and product portfolio to drive growth over medium term for ‘Value Added business vertical ms4 eee | ; | Bioseed oeucel Geran Rona Ta aaa en Q3 FY16 46.4 (20.4) 413.5 Qs FY15 29.5 (34.7) 452.5 % Shit 57.2 - (8.6) OM FY16 443.2 25.8 413.5 OM FY1S 492.5 429 452.5 % Shift (10.9) (39.8) (86) Bioseed business is intensely research based ands diversified across key crops (Cotton, Com, Paddy, Balra and Vegetables), India i the key market with presence across all above crops. intemational presence & in Vietnam , Philipines and Indonesia wherein ‘the key crop is Com. The performance of the business has seasonaity, with Kharif being the major season in India, + Q3FY 16 revenues increase was primarily due fo higher sales in the international business mgm §«— «Domestic business’ revenue aso stood Figher led by higher sales of vegetable seeds dung the quater Fed ernie Vis-auvis last year ‘+ Eamings improverient was primary in international operations, as corresponding quarter last year there were sales retuins leading to Inventory writeott ‘+ YTD porformance dectine[s on account of lower offtake of Cotton and Corn seeds due to adverse weather Conditions during Kharif 2015 camming «Central Covt's decision under the newly promulgated Cotton Seed Price Control order wil affect the Performance erg ‘+Business expected to witness growth in the medium term on account of higher sales in the Southern and Central markets driven by high focus on R&D and a strong produc pleeline ‘+ Augmenting product portfolio and marketing efforts to drive grovah in operstions Fertilisers (Urea) Cur FUE Ec i Rou a ea) ele ral oma (Rs. cr.) (Rs. er.) atio i QS FY16 108,960 20,529 229.2 16.9 QS FYIS 104,110 20,087 2n1.5 18.4 % Shitt 47 22 a4 (65) OM FY16 297,285 20,577 622.3 24.9 OM FY15 305,553 18,104 556.4 35.0 % Shift 22 137 11.9 (28.9) } 03 FY 16 revenue stood higher by 8.4% YoY due to higher volumes and realizations vis-évis last year Business’ energy effciency improved both sequentially and vis-a-vis last year Eamings benefited from allowance by Govt of Rs 200/Thsom of ges consumed as marketing margin Tightening in energy efficiency norms under the new Urea policy (effective 1* June 2015) continued to weigh down on earnings + Subsidy outstanding up 19% to Rs 324 crores from Dec 81, 2014 four ex Energy efficiency continues to improve, Higher subsidy outstanding leading to downward pressure on earnings due to higher finance costs ‘Suboptimal increase in the retention prices by the Govt. impacting earnings ofthis business pe uemeeeeac: Cement Creu Particulars wy tasty (Rovor) Q3FY16 100,305 2,740 33.0 Os FY15 90,658 2,708 312 % Shift 106 12 56 OM FY16 315,812 2,703 102.5 oMFY15 285,218 2,939 102.9 % Shitt 10.7 (80) (0.4) Financial : en aur (Rs. cr.) (Rs. cr.) 87) 90 68) a3 7 (3.6) 3.5) 20 (4.0) 93 - (3.5) ‘The Cement business is small. sinoe Its capac is driven by the waste generated from carbide plant. The Company markets its cement Under the ‘Shriram’ brand onc Cree ‘+ Higher revenue was primarily due to higher sales volumes during the quarter + Cement realizations continue io remain soft and stood 2% down sequentialy amid muted demand ‘scenario + Improvement in eamings during the quarter vs. last yaar was an account of higher revenue and lawar cost ‘of key input materials such as limestone and coal res * Pc up inthe domestic realestate sector wil load to higher nasty ulizatons and intense in Hariyali Kisaan Bazaar Coro ena es eo aarri6 96.6 08: 141.2 os FYIS 1199 32 1782 % Shit (19.4) (63.6) (19.4 om FYA6 293.6 on 1a12 omFvts 368.2 29 1752 % Shit (20.3) - (19.4) ‘© Revenues trom fuel sales only + Lower earnings is on account of ower sale of properties vis-2-vis corresponding quarter last year * Business focused on sale of existing properties. Progressing slowy, expectad to take about 2-3 years cris exer ay See aan Other Businesses DCM Shriram’s other operations, reported as ‘Others’ in the financial results, include its businesses of Polymer ‘Compounding (now under 50:50 JV) and Fenesta Building Systems. Revenues under ‘Others’ stood at Rs. 71.2 crore in the quarter under review compared to Rs. 67.1 crore last year. PBIT for the quarter stood at Rs. 1.3 crore vis-a-vis PBIT of Rs. 0.1 crore in Q3 FY 15, Ue neecmec: Fenesta Building Systems ce alt) oe oe aod a3 Fvi6 ee oa Q3 FY15: 60.5 48.2 sent 102 87 omrvis ans 107 emvis 1813 1203 ve sn gst 153 Fenesta @ pan India brand has become synonymous with UPVC windows, Includes Retail and Project Segment ‘© Fenesta business’ revenue increased by 8.7% YoY to Rs 524 crores primarily due to higher sales volumes from the ‘Projects’ segment Volumes in the etal segment stood higher by 6% YoY "Order Booking witnessed strong growin for both ‘Retail and ‘Project’ segments in 9M FY 16 vs. last year "+ Business operations continue to be positive at PBT level ere) : reed + Company focused on expanding the ‘Retail segment along with the revival of Project sales to provide profitable volume growth '+ Improvement in the overall economic scenario end uptick in the real estete sector will enable higher penetration of our UPVC window offerings Eee) Sasa www.demshriram.com or contact: ‘Amit Agarwal DCM Shriram Ltd. Tel: #91 11 4210 0200 Fax: +91 11 2872 0325 Email: amitagarwal@demshriram.com emenecl FY16 Resul For more information on the Company, About Us & Investor Contacts DCM Shriram Lid. is an integrated business entity, with extensive and growing presence across the entire Agri value chain and Chloro-Vinyl industry. The Company has added innovative value- added businesses in these domains primarily Bioseed and Fenesta. Access to captive power at all key manufacturing units enables the businesses to optimise competitive edge. Its products and services please log on to ‘Siddharth Rangnekar / Urvashi Butani CDR India Tel: +91 22 6645 1209/19 Fax: 91 22 6645 1213 Email: siddharth@cdr-india.com/ urvashi@cdr-india.com & DCM SHRIRAM | For Immediate Release DCM Shriram Ltd. announces its Q3 FY16 financial results Revenue at Rs. 1,263 cr (LY: Rs.1,197 cr) Net Profit at Rs. 60 cr (LY: Rs. 27 cr] { | » Sugar business recorded lower losses; primarily due to lower inventory write-off, a result of higher current prices and lower cost of production led by better sugar recovery > Chloro-vinyl business witnessing declining trend in selling prices in the current year, driven by weakness in global commodity prices, impacting margins > Capacity expansion plans progressing well New Delhi, 2nd Feb 2016: DCM Shriram Ltd. announced its Q3 FY16 financial results today. Q3 and 9M FY’16 Highlights : IRs.cr} : z Fvis FYIS Net revenue 1197 4,330 PRDIT 55 417 [Finance Cost 26 84 [Pat 27 251, Key Developments and Outlook: a. Chloro-Vinyl - PVC prices in the current year have declined by about ~ 14% from the peak witnessed in April 15. Chemical Prices are also lower by ~5% compared to beginning of the year. Input costs are also declining though at a slower pace. Further, new taxes and levies on Coal based Power are imposing additional burden. This is putting pressure on margins, The business is vulnerable to cheaper imports with very low customs duties, ~The improvement in earnings vs. same period last year Is because in Q3 FY15 there was unprecedented drop in prices ~ Chemicals business is expected to commission expansion of Caustic Soda Capacity by Ql FY. 17 and Coal based power plant by Sept’ 16. b. Sugar - Sugar recovery till December 15 stood around 10.7% vs. 9.9% last year - At current prices of “Rs. 3000/Qtl, the margin for the current Sugar season would be marginally negative {including subsidies in the recently announced UP cane policy). For the last season the margin was negative Rs. 585 per quintal = Sugar co-gen expansion plan is as per schedule, to be commissioned by 03 FY17 c. Bioseed and Shriram Farm Solution - Weather plays a vital role in performance of these Agri-input businesses, which has been adverse for last two years, impacting performance of this business, Added to this, Central Government's decisions under newly promulgated ‘Cotton seed price control order’ will affect the performance d. Fertilizer subsidy outstanding are rising, impacting the earnings @, Net Debt of the Company stands at Rs. 435 Cr. as on 31" Dec 15 vs. Rs. 491 crs, as on 31 Dec 14 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: “The company reported a satisfactory performance with stable operations and positive improvements in sugar margin structure and outlook. The policy framework for Sugar business is moving in the right direction with the Govt. and industry pursuing export of surplus sugar, developing a rational cane pricing policy linking sugarcane and encouraging the production and use of ethanol. Weather pattern has also helped in improving the situation. The Govt. and industry has to carry forward the steps being undertaken. Establishing cane and sugar price linkage will provide long term direction to the industry. Chioro Vinyl business is directly impacted by the Global conditions and faces threat from low priced imports. We continue to focus on improving our cost structure and scale to strengthen our competitiveness. Growth of our Agri-input businesses is affected by adverse weather conditions. We are further strengthening our product portfolio and intensifying our marketing efforts. Our capex programs in the Chemicals and Sugar businesses are progressing well and will add to company’s performance from FY 17 onwards. Our healthy balance sheet and reasonable cash flows enable us to comfortably fund our ongoing capex programs and give us flexibility to take up future growth projects” | | Q3 & 9M FY '16 Performance Overview & Outlook CHLORO VINY = Current PVC prices have seen a significant drop compared to prices in April 15. Chemical prices also have deciined in the same period. "Input costs are dectining at a slower pace New taxes and levies on coal based power are imposing additional burden Overall margins deciining in the current year, though better than Q3 FY 15 wherein the decline was very sharp led by unprecedented low prices * Increase in Capital Employed of the segment is due to the undergoing capacity expansion at Bharuch Outlook "The Business is vulnerable to cheaper imports, with limited custom duty protection. The domestic prices will follow global price trends Expect higher Chior Alkali volumes in Q1 FY 17 as the company commissions its expanded capacity at Bharuch = New captive power plant at Bharuch to start by Sep 2016 = Maintenance shutdown in Chemicals and PVC businesses planned in Q4 FY 16 at both the Kota and Bharuch plants SUGAI Lower revenue in Q3 FY 16 vis-a-vis last year was primarily due to lower volumes and realisations, a result of lower opening inventory this quarter + Operating losses stood lower during the quarter vis-a-vis last year on account of lower inventory write-down, a result of higher sugar recovery in the current season and improved current realizations ‘© Sugar recovery in the current season till Dec stood higher at 10.7% vs. 9.9% last season ‘© Current prices are around Rs 3,000/At! only marginally less than the cost of production Outlook Recently announced UP Cane policy is in line with last year’s scheme; SAP unchanged but State Govt’s subsidy reduced by Rs 5/Atl of cane consumed = Establishing cane and sugar price linkage will provide long term direction to the industry "Sugar production in India is expected to be less than last year. Govt. / Industry pursuing for exports also ™ Sugar co-gen expansion project is on schedule, to be commissioned before the next sugar season ‘SHRIRAM FARM SOLUTIONS: = Revenue increase during Q3 FY 16 vs. last year was due to higher sales volumes of bulk fertilisers = “Value Added’ inputs vertical’s revenue stood lower by 5% YoY on account of © Delayed sowing in the Rabi season amid distressed farm economics that adversely impacted off-take of crop care chemicals and micronutrients during the quarter, "Lower business earnings during the quarter was primarily on account of weaker margins in bulk fertilizers and lower sales of Value added inputs Business’ capital employed increased substantially due to rise in subsidy outstandings and higher inventory of bulk fertilisers Outlook = Overall performance will depend on weather pattern in Kharif season "Central Govt. has recently issued Cotton Seed Price Control order. Govt's decision in the matter will affect the performance "High subsidy outstanding in bulk fertilizers is resulting in higher working capital requirements = Company continues to focus on marketing initiatives and efforts towards growing distribution network, demand creation and product portfolio to drive growth over medium term for ‘Value Added’ business vertical BIOSEED: " Q3 FY 16 revenues increase was primarily due to higher sales (Corn) in the international business "Domestic business’ revenue also stood higher due to higher sales of vegetable seeds during the quarter vis-a-vis last year ‘+ Earnings improvement was primarily in international operations, as corresponding quarter last year there was one time inventory writeoff * Weather plays a vital role in performance of this business, which has been adverse in our areas of ‘operations, impacting growth Outlook * Central Govt’s decision under the newly promulgated Cotton Seed Price Control order will affect the performance "Business expected to witness growth in the medium term driven by high focus on R&D and a strong product pipeline New product offerings and increasing marketing efforts to drive growth in operations FERTILIZER: = Increase in Q3 FY 16 revenue was due to higher volumes vs. last year + In Q3 FY 16, energy efficiency stood better both sequentially and vis-a-vis last year = Earnings benefited from allowance by Govt. of Rs 200/Thscm of gas as marketing margin "Tightening in energy efficiency norms under the new Urea policy (effective 1 June 2015) weighed on earnings = Subsidy outstanding substantially higher vis-3-vis last year, a result of high pooled gas prices Outlook * Continuous focus on improvement in energy efficiencies + Higher subsidy outstanding leading to downward pressure on earnings due to higher finance costs = Retention prices are not in line with cost increases impacting earnings of this business CEMENT: ‘© Higher revenue during the quarter was due to higher sales volumes * Cement realizations continue to remain soft and stood 2% down sequentially + Improvement in earnings during the quarter vs. last year was on account of higher revenue and lower cost of key input materials HARIVAL! KISAAN BAZAR: = Revenues from fuel sales only = Lower earnings is on account of lower sale of properties OTHERS = Fenesta business’ revenue stood higher during the quarter primarily due to higher sales volumes from the ‘Projects’ segment = Order Booking witnessed strong growth for both ‘Retail’ and ‘Project’ segments in 9M FY 16 Business operations continue to be positive at PBT level Segment Performance Coot ean Chiore Vinyl 203.7 206.5 09 sugar tes ‘Agr inputs eae eas 253 | |= Shriram Farm Soktions “pats 378.9 346 -Bioseed i (117.6) Fertiliser : Cement aH HaciyaliKisaan Bazzar 1199 26.6 way | Others era 2 60 ‘Total 12040 4,277.8 et Lece:intrsegment roto ta ts: Unateable : onda Tou "mag sa | #78 ten ae | _a3as 9M FY ‘16 ~ Segment Performance oo Cake Claas ure Prine cant oe ae Pe

    You might also like