DCM Shriram on Tuesday posted a 15.42 percent increase in consolidated net profit at Rs 232 crore for the fourth quarter of 2020-21 fiscal on strong sales. The company’s net profit stood at Rs 201.27 crore in the same period of the previous fiscal, according to a regulatory filing.

Net income rose on a consolidated basis to Rs 2,221.42 crore during the fourth quarter of 2020-21 from Rs 1,928.77 crore in the year-ago period. Expenses remained higher at Rs 1,912.92 crore as against Rs 1,680.72 crore earlier. The company’s net debt stood at Rs 180 crore as on March 31, 20201, as against Rs 1,623 crore in the year-ago period.

”The reduction in debt was led by lower sugar inventory and significantly lower fertiliser subsidy outstanding. Judicious approach to capex and working capital across businesses also led to lower net debt,” DCM Shriram said in the filing. The company’s Chairman and Senior Managing Director Ajay Shriram and Vice Chairman and Managing Director Vikram Shriram said: ”FY’21 has been a year of disruptions caused by COVID-19. The Company adapted well to these disruptions and delivered a stable operating and financial performance.” ”Almost all our businesses operated at normal levels in the second half of the year. Our businesses have strengthened as a result of investments and well as rationalization made over last couple of years,” they added.

Further, they said the economic environment has again become uncertain with the new devastating wave of COVID-19. However, the company’s balance sheet and cash flows continue to be strong, which gives the confidence to handle uncertainties as well as provides a lot of flexibility to invest for the future and enhance growth. The board recommended a final dividend of Rs 3.80 per equity share of face value of Rs 2 each for the 2020-21 fiscal. The company’s shares settled lower by 3.32 percent at Rs 731.60 per piece on the BSE on Tuesday.

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First Published:May 5, 2021 10:43 AM IST