MIRA INFORM REPORT
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Report No. : |
313982 |
|
Report Date : |
24.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
DCM SHRIRAM LIMITED |
|
|
|
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Formerly Known
As : |
DCM SHRIRAM CONSOLIDATED LIMITED FINPRO SOLUTIONS PRIVATE LIMITED |
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Registered Office
: |
5th Floor, |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
06.02.1989 |
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Com. Reg. No.: |
55-034923 |
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Capital
Investment / Paid-up Capital : |
Rs.331.807 Million |
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CIN No.: [Company Identification
No.] |
L74899DL1989PLC034923 |
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IEC No.: |
Not Divulged |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELD04602D DELD08433F |
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PAN No.: [Permanent Account No.] |
AAACD0097R |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
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Line of Business
: |
The company is engaged
in manufacturing of Fertilisers, Urea, Ammonia, Cement, Caustic Soda,
Chlorine, HCI, PAC, SBP, Hydrochloric Acid, Calcium Carbide, PVC Resin,
Textile Products, Sugar and Energy Management Services. |
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|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable factors will not cause fatal effect. Satisfactory capability for payment
of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 48000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and a reputed company having fine
track record. Financial position of the company seems to be sound. Trade relations are fair. Business is active. Payment terms are
regular and as per commitments. In View of long standing experience of the management, the subject can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fixed Deposit Programme = MA+ |
|
Rating Explanation |
Adequate credit quality and caries average credit RISK. |
|
Date |
June 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE (91-11-23316801)
LOCATIONS
|
Registered Office : |
5th Floor, |
|
Tel. No.: |
91-11-23316801 |
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Fax No.: |
91-11-23318072 |
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E-Mail : |
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Website : |
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Corporate Office |
1st Floor, Kanchenjunga Building, 18 Barakhamba Road, New Delhi – 110001, India |
|
Tel. No.: |
91-11- 23316801 |
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Fax No.: |
91 -11 -23318072 |
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|
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Factory 1 : |
Shriram Fertilisers and Chemicals Shriram Nagar, |
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Factory 2 : |
Shriram Alkali
and Chemicals 749, G.I.D.C. Industrial Estate, District Bharuch, |
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Factory 3 : |
DSCL Sugar Village Ajbapur, P.O. Mullapur, Lakhimpur Kheri – 261 505, |
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Factory 4 : |
DSCL Sugar Village Rupapur, P.O. Munder, District Hardoi – 241 123, |
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Factory 5 : |
DSCL Sugar Village and P.O. Hariawan, District Hardoi – 241 405, |
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Factory 6 : |
DSCL Sugar Village Loni, P.O. Anjhi Shahbad, District Hardoi – 241 124, |
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Sales Office : |
Located At : ·
New Delhi ·
Mumbai ·
Kolkata ·
Chennai ·
Indore ·
Hyderabad ·
Jaipur ·
Ludhiana ·
Kota ·
Meerut ·
Sriganganagar
|
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|
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|
Market Office : |
·
Kirti Mahal, 19, Rajendra Place, New Delhi - 110
008 Tel. No. 91-11-25713442/25722296 Fax. No. 91-11-25768135 ·
Shivaji Marg, New Delhi - 110 015 Tel. No. 91-11-25104410/25747836 Fax. No. 91-11-25455362/25739816 ·
5th Floor, Kanchenjunga Building, 18, Barakhamba
Road, New Delhi - 110 001 Tel. No. 91-11-23316801-9 Fax. No. 91-11-23318072 |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. Ajay Shridhar Shriram
|
|
Designation : |
Chairman and Senior Managing Director |
|
Address: |
‘SHIVAM’, A 37, Vasant Marg, Vasant Vihar, |
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Date of Birth/Age: |
04.03.1954 |
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Date of Appointment: |
24.07.1989 |
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DIN No.: |
00027137 |
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Name : |
Mr. Vikram Shridhar Shriram |
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Designation : |
Vice Chairman and Managing Director |
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Address: |
5/16, Shanti Niketan, |
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Date of Birth/Age: |
06.12.1958 |
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Date of Appointment: |
22.05.1990 |
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DIN No.: |
00027187 |
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Name : |
Mr. K. K. Kaul |
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Designation : |
Whole Time Director |
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Name : |
Mr. Ajit Shridhar Shriram |
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Designation : |
Deputy Managing Director |
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Address: |
5/20, Shanti Niketan, |
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Date of Birth/Age: |
03.10.1967 |
|
Date of Appointment: |
02.05.2001 |
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DIN No.: |
00027918 |
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Name : |
Dr. Narendra Jeet Singh |
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Designation : |
Whole Time Director (EHS) |
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Address: |
A-22, Mahaveer Nagar-II, |
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Date of Birth/Age: |
29.11.1953 |
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Qualification : |
M.Sc., Ph.D. |
|
Expertise in
Functional Area : |
Environment, Health, Safety, Quality Systems, Sustainability, Food
Safety and Energy Management |
|
Date of Appointment: |
20.11.2007 |
|
DIN No.: |
01893202 |
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|
|
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Name : |
Dr. Satguru Sharan Baijal |
|
Designation : |
Director |
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Address: |
B 4 Sector 30, Gautam Budh Nagar, Noida – 210 303 Uttar Pradesh, |
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Date of Birth/Age: |
06.09.1929 |
|
Date of Appointment: |
22.05.1990 |
|
DIN No.: |
00027961 |
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|
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Name : |
Mr. Arun Bharat Ram |
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Designation : |
Director |
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Address: |
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Date of Birth/Age: |
15.11.1940 |
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Date of Appointment: |
22.05.1990 |
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DIN No.: |
00694766 |
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|
Name : |
Mr. Pradeep Dinodia |
|
Designation : |
Director |
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Address: |
A-9-A, Maharani Bagh, |
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Date of Birth/Age: |
15.11.1940 |
|
Date of Appointment: |
22.05.1990 |
|
DIN No.: |
00027995 |
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|
|
|
Name : |
Mr. Vimal Bhandari |
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Designation : |
Director |
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Address: |
Flat N0.164, 16th Floor, |
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Date of Birth/Age: |
23.08.1958 |
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Qualification : |
|
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Expertise in
Functional Area : |
Finance, Human Resources and General Management |
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Date of Appointment: |
13.05.2003 |
|
DIN No.: |
00001318 |
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|
|
|
Name : |
Mr. Sunil Kant Munjal |
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Designation : |
Director |
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Address: |
l-A, Friends, Colony (West), |
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Date of Birth/Age: |
14.12.1957 |
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Qualification : |
B.Com, Training in Mechanical Engineering |
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Expertise in
Functional Area : |
Corporate Planning, Finance, Manufacturing, Customer Relationship,
Information Technology and Insurance |
|
Date of Appointment: |
13.05.2003 |
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DIN No.: |
00003902 |
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|
|
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Name : |
Mr. Debdatta Sengupta |
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Designation : |
Director |
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Address: |
Sector-B, Pocket, 8, Flat N0.6145, Vasant Kunj, |
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Date of Birth/Age: |
20.06.1942 |
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|
Bachelor of Science in Physics, PGDM. |
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|
Market Development, Risk Analysis and Transfer Techniques, Managing
Human Resources, Insurance and Reinsurance Principles and Practices, Funds
Management and International Business Relations. |
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Date of Appointment: |
11.08.2003 |
|
DIN No.: |
00043289 |
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|
|
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Name : |
Mr. Sharad Shrivastava |
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Designation : |
LIC Nominee |
KEY EXECUTIVES
|
Name : |
Mr. B.L. Sachdeva |
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Designation : |
Company Secretary |
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Audit Committee : |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2014
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
5461050 |
3.36 |
|
|
98282744 |
60.51 |
|
|
103743794 |
63.88 |
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Total shareholding of Promoter
and Promoter Group (A) |
103743794 |
63.88 |
|
(B) Public Shareholding |
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|
|
|
|
|
|
|
375243 |
0.23 |
|
|
72690 |
0.04 |
|
|
29640 |
0.02 |
|
|
16925936 |
10.42 |
|
|
2737546 |
1.69 |
|
|
20141055 |
12.40 |
|
|
|
|
|
|
3944936 |
2.43 |
|
|
|
|
|
|
13681769 |
8.42 |
|
|
1457774 |
0.90 |
|
|
19446809 |
11.97 |
|
|
180829 |
0.11 |
|
|
15105550 |
9.30 |
|
|
87001 |
0.05 |
|
|
431130 |
0.27 |
|
|
3642299 |
2.24 |
|
|
38531288 |
23.72 |
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Total Public shareholding (B) |
58672343 |
36.12 |
|
Total (A)+(B) |
162416137 |
100.00 |
|
(C) Shares held by Custodians and
against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
162416137 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is
engaged in manufacturing of Fertilisers, Urea, Ammonia, Cement, Caustic Soda,
Chlorine, HCI, PAC, SBP, Hydrochloric Acid, Calcium Carbide, PVC Resin,
Textile Products, Sugar and Energy Management Services. |
|
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Products : |
Not Available |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Not Divulged |
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Bankers : |
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Facilities : |
(Rs. In Million)
NOTE: SECURED Long term
borrowings from banks:
Long term borrowings from others:
SHORT TERM
BORROWING: SHORT TERM WORKING
CAPITAL BORROWINGS FROM BANKS: Loans from banks on cash credit account of Rs. 988.000 Million (2012-13 - Rs. 1794.500 Million) are secured by first pari passu charge on whole of the current assets, both present and future, of the Company (except Shriram Bioseed Genetics, Hyderabad and Bioseed Research India , Hyderabad). These loans are further secured by a third charge by way of mortgage/hypothecation of all the immovable/ movable properties (other than current assets) of the Company’s undertakings located at Kota in Rajasthan and Ajbapur, Rupapur, Loni and Hariawan in Uttar Pradesh. Amount of Rs. Nil (2012-13 - Rs. 16.300 Million) is secured by exclusive charge by way of hypothecation on current assets and mortgage/hypothecation on the immovable and movable properties, both present and future of the Company’s undertakings at Shriram Bioseed Genetics, Hyderabad. Short Term Loan of Rs.2270.900 Million (2012-13 - Rs. 3090.200 Million) are secured by first pari passu charge on whole of the current assets, both present and future, of the Company (except Shriram Bioseed Genetics, Hyderabad and Bioseed Research India, Hyderabad), and a third charge by way of mortgage/hypothecation of all the immovable/movable properties (other than current assets) of the Company’s undertakings at Kota in Rajasthan and Ajbapur, Rupapur, Loni and Hariawan in Uttar Pradesh. |
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
Address : |
7th Floor, Tower B,
Building 10, DLF Cyber City Complex, DLF City Phase II, Gurgaon, Haryana, India |
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Tel. No.: |
91-124-6792000 |
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Fax No.: |
91-124-6792012 |
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Cost Auditors : |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29,49,50,000 |
Equity Shares |
Rs.2/- each |
Rs.589.900 Million |
|
65,01,000 |
Cumulative redeemable preference shares |
Rs.100 each |
Rs. 650.100 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16,98,03,320 |
Equity Shares |
Rs.2/- each |
Rs. 339.600 Million |
Subscribed and fully paid up
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
163067849 |
Equity Shares |
Rs.2/- each |
Rs. 326.400
Million |
|
Less:138,562 |
Equity shares |
Rs.2/- each |
Rs.0.300
Million\ |
|
Add: |
Forfeited shares |
|
Rs. 1.600
Million |
|
|
Total |
|
Rs. 327.700 Million |
Note:
Reconciliation of Number
of shares and amount outstanding at the beginning and at the end of the
reporting period:
|
Subscribed and fully paid up Equity Shares: |
No. of shares |
Value (Rs. Million) |
|
As at April 1, 2012 |
165,903,320 |
Rs. 331.800 Million |
|
As at March 31, 2013 |
165,903,320 |
Rs. 331.800 Million |
|
Less: Equity shares buy back |
2,696,909 |
Rs. 5.400 Million |
|
As at March 31, 2014 |
163,206,411 |
Rs. 326.400 Million |
The Company has bought back 28, 35,471 equity shares of Rs 2/- each, out of which 26,96,909 equity shares have been extinguished up to March 31, 2014 and the balance 138,562 equity shares have been extinguished subsequent to March 31, 2014
|
Particular |
No. of shares |
Percentage |
|
(i)Shares held by the
holding company: Sumant Investments Private Limited |
98,282,284 |
60.22% |
|
(ii)The
shareholders holding more than 5% equity shares are as under: |
|
|
|
Sumant Investments Private Limited |
98,282,284 |
60.22% |
|
Life Insurance Corporation of India |
12,863,749 |
7.88% |
FINANCIAL DATA
[All figures are
in Rupees Million]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
327.700 |
333.400 |
333.400 |
|
(b) Reserves & Surplus |
16407.900 |
13671.200 |
12064.100 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
16735.600 |
14004.600 |
12397.500 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
5875.400 |
6604.200 |
7878.500 |
|
(b) Deferred tax liabilities (Net) |
1434.200 |
1592.700 |
1554.600 |
|
(c) Other long term
liabilities |
354.600 |
329.800 |
277.300 |
|
(d) long-term
provisions |
1272.200 |
1150.700 |
1086.000 |
|
Total Non-current
Liabilities (3) |
8936.400 |
9677.400 |
10796.400 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
4097.800 |
6938.600 |
8278.900 |
|
(b) Trade
payables |
12696.500 |
10481.300 |
8660.800 |
|
(c) Other
current liabilities |
4729.300 |
4370.400 |
4898.100 |
|
(d) Short-term
provisions |
485.700 |
412.400 |
251.700 |
|
Total Current
Liabilities (4) |
22009.300 |
22202.700 |
22089.500 |
|
|
|
|
|
|
TOTAL |
47681.300 |
45884.700 |
45283.400 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
14103.100 |
14570.100 |
17909.800 |
|
(ii)
Intangible Assets |
39.800 |
45.600 |
99.200 |
|
(iii)
Capital work-in-progress |
213.400 |
158.500 |
270.300 |
|
(iv)
Intangible assets under development |
0.000 |
1.700 |
3.900 |
|
(b) Non-current Investments |
446.800 |
453.700 |
504.400 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2477.300 |
1820.500 |
1730.900 |
|
(e) Other
Non-current assets |
129.600 |
84.800 |
44.500 |
|
Total Non-Current
Assets |
17410.000 |
17134.900 |
20563.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
1936.400 |
12.700 |
0.000 |
|
(b)
Inventories |
10975.200 |
13394.200 |
13018.800 |
|
(c) Trade
receivables |
9796.300 |
9105.800 |
6605.400 |
|
(d) Cash
and cash equivalents |
2865.600 |
1199.100 |
2283.100 |
|
(e)
Short-term loans and advances |
2056.900 |
2225.200 |
2517.300 |
|
(f) Other
current assets |
2640.900 |
2812.800 |
295.800 |
|
Total
Current Assets |
30271.300 |
28749.800 |
24720.400 |
|
|
|
|
|
|
TOTAL |
47681.300 |
45884.700 |
45283.400 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
60815.400 |
53999.300 |
49557.000 |
|
|
|
Other Income |
514.700 |
461.200 |
298.900 |
|
|
|
TOTAL (A) |
61330.100 |
54460.500 |
49855.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
17860.600 |
19178.700 |
17286.700 |
|
|
|
Purchases of Stock-in-Trade |
18705.400 |
14848.300 |
17272.100 |
|
|
|
Change in inventories
of finished goods, Work-in-progress and Stock-in-Trade |
2859.400 |
(624.400) |
(3278.100) |
|
|
|
Employee benefits expense |
3830.200 |
3630.100 |
3555.400 |
|
|
|
Other expenses |
12201.100 |
11887.400 |
11699.400 |
|
|
|
Exceptional Items |
0.000 |
535.800 |
380.600 |
|
|
|
TOTAL (B) |
55456.700 |
49455.900 |
46916.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
5873.400 |
5004.600 |
2939.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1458.800 |
1526.500 |
1575.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4414.600 |
3478.100 |
1364.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1341.300 |
1438.200 |
1540.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
3073.300 |
2039.900 |
(176.500) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
326.700 |
134.500 |
(33.900) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
2746.600 |
1905.400 |
(142.600) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5393.500 |
4538.000 |
4759.100 |
|
|
|
|
|
|
|
|
|
Add |
BALANCE BROUGHT FORWAR CONSEQUENT TO MERGER OF ERSTWHILE SHRIRAM
BIOSEED GENETICS INDIA LIMITED |
619.300 |
-- |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividends on Equity Shares (Incl. Interim dividend) |
327.600 |
265.400 |
66.400 |
|
|
|
Corporate Dividend Tax |
55.700 |
33.200 |
10.800 |
|
|
|
Storage fund for Molasses Account |
1.300 |
1.300 |
1.300 |
|
|
|
General Reserve |
750.000 |
750.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
7624.800 |
5393.500 |
4538.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Direct export of goods on FOB basis/as per contracts where FOB value
not readily ascertainable |
42.100 |
131.400 |
205.400 |
|
|
|
Others |
30.100 |
6.500 |
7.800 |
|
|
TOTAL EARNINGS |
72.200 |
137.900 |
213.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
325.700 |
375.900 |
619.400 |
|
|
|
Components & Spare Parts |
110.400 |
125.300 |
173.700 |
|
|
|
Capital Goods |
1264.300 |
871.500 |
940.200 |
|
|
|
Others |
6104.100 |
6005.700 |
3048.000 |
|
|
TOTAL IMPORTS |
7804.500 |
7378.400 |
4781.300 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
- Before
Exceptional Item |
16.56 |
14.55 |
0.99 |
|
|
|
- After
Exceptional Item |
16.56 |
11.49 |
(0.86) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
4.52 |
3.53 |
(0.29) |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
9.66 |
9.27 |
5.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.54 |
4.51 |
(0.40) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.15 |
(0.01) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.60 |
0.97 |
1.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.38 |
1.29 |
1.12 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
Unaudited 30.06.2014 |
Unaudited 30.09.2014 |
Unaudited 31.12.2014 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Revenue |
16,765.500 |
13,785.900 |
11,883.700 |
|
Other Income |
157.900 |
125.000 |
164.700 |
|
Total Income |
16,923.400 |
13,910.900 |
12,048.400 |
|
Expenditure |
(14,230.800) |
(12,973.700) |
(11,291.900) |
|
Interest |
(277.700) |
(295.200) |
(259.400) |
|
PBDT |
2,414.900 |
642.000 |
497.100 |
|
Depreciation |
(282.200) |
(268.300) |
(261.800) |
|
PBT |
2,132.700 |
373.700 |
235.300 |
|
Tax |
(346.200) |
108.500 |
266.400 |
|
Net Profit |
1,786.500 |
482.200 |
501.700 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
333.400 |
333.400 |
327.700 |
|
Reserves & Surplus |
12064.100 |
13671.200 |
16407.900 |
|
Net worth |
12397.500 |
14004.600 |
16735.600 |
|
|
|
|
|
|
long-term borrowings |
7878.500 |
6604.200 |
5875.400 |
|
Short term borrowings |
8278.900 |
6938.600 |
4097.800 |
|
Total borrowings |
16157.400 |
13542.800 |
9973.200 |
|
Debt/Equity ratio |
1.303 |
0.967 |
0.596 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
49557.000 |
53999.300 |
60815.400 |
|
|
|
8.964 |
12.623 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
49557.000 |
53999.300 |
60815.400 |
|
Profit |
(142.600) |
1905.400 |
2746.600 |
|
|
(0.29%) |
3.53% |
4.52% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
(Yes) |
|
2] |
Locality of the firm |
(Yes) |
|
3] |
Constitutions of the firm |
(Yes) |
|
4] |
Premises details |
(No) |
|
5] |
Type of Business |
(Yes) |
|
6] |
Line of Business |
(Yes) |
|
7] |
Promoter's background |
(No) |
|
8] |
No. of employees |
(No) |
|
9] |
Name of person contacted |
(No) |
|
10] |
Designation of contact person |
(No) |
|
11] |
Turnover of firm for last three years |
(Yes) |
|
12] |
Profitability for last three years |
(Yes) |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
(No) |
|
15] |
Capital in the business |
(Yes) |
|
16] |
Details of sister concerns |
(Yes) |
|
17] |
Major suppliers |
(Yes) |
|
18] |
Major customers |
(Yes) |
|
19] |
Payments terms |
(No) |
|
20] |
Export / Import details (if applicable) |
(No) |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
(Yes) |
|
24] |
Banking facility details |
(Yes) |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
(Yes) |
|
28] |
Incorporation details, if applicable |
(Yes) |
|
29] |
Last accounts filed at ROC |
(Yes) |
|
30] |
Major Shareholders, if available |
(Yes) |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
(Yes) |
|
32] |
PAN of Proprietor/Partner/Director, if available |
(No) |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
(No) |
|
34] |
External Agency Rating, if available |
(Yes) |
UNSECURED LOAN
(Rs. in Million)
|
Particulars |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
LONG TERM
BORROWINGS |
|
|
|
Deposits |
|
|
|
Fixed |
88.800 |
70.600 |
|
Others |
155.700 |
65.200 |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans repayable on demand |
|
|
|
From banks |
805.800 |
2004.000 |
|
From others |
20.000 |
20.000 |
|
Loan from subsidiary company |
13.100 |
13.600 |
|
Total |
1083.400 |
2173.400 |
MANAGEMENT DISCUSSION
AND ANALYSIS
PERFORMANCE REVIEW:
The company continued to deliver robust performance for the year, driven by higher earnings in the Chloro- Vinyl business and Shriram farm Solutions business, operating breakeven in Fenesta business and elimination of losses in the Hariyali business. However the earnings were adversely impacted due to losses in international Bioseed operations (a one-time exercise was carried out to clear the trade channel and the old/ expired inventory), negative margins in Sugar business and losses in cement business. The Company’s policy to conserve cash has led to substantial reduction in debt and has strengthened the financial position.
- Net Revenues were higher by 11.6% at Rs. 61822. 000Million in FY 14 as compared to Rs. 55389.000 Million in the previous year. Net Revenues (excluding Hariyali Business) grew by 15%. This increase in revenues during the year was primarily driven by growth in Shriram Farm Solutions (+37%), Fertilizers (+19%) and Sugar (+12%) businesses.
- Shriram Farm Solutions: Revenues for FY 14 were higher by 37% at Rs. 17790.000 Million. Sales of Value Added Inputs and Bulk fertilisers grew strongly increasing by 38%and 36%, respectively, during the year.
- Fertilizer: The Fertilizer business’ revenue increased by 19% to Rs 6250.000 Million in FY 14 on account a 5% increase in sales volumes (FY 13 had a scheduled maintenance shutdown) and a 14% increase in realizations driven by higher input costs which are a pass through.
- Sugar: Revenues were higher by 12% at Rs. 15000.000 Million due to 17% increase in sales volumes. However realizations for the year softened by 7%.
- Profit before interest, exceptional items and tax (PBIT) stood at Rs 4210.000 Million as compared to Rs. 4270.000 Million in the previous year
- Chloro-Vinyl: PBIT from the Chloro Vinyl business was up by 9% to Rs. 3740.000 Million essentially due to PVC resins wherein the realizations were higher by 14% and sales volumes by 11%. The margins remain healthy with sustained measures to contain rising input costs.
- Shriram Farm Solutions: PBIT in this business for FY14 was higher by 59% at Rs. 810.000 Million on account of strong earnings growth in the Value Added Inputs portfolio. The net earnings from DAP/MOP were under stress due to adverse demand and supply conditions and high working capital including subsidy outstanding.
- Fertilizer: PBIT in FY 14 was higher by 110% at Rs 232.000 Million on account of higher volumes as well as energy savings led by improved efficiencies. The overall profitability continues to get affected by the high level of subsidy outstanding.
- Bioseed: PBIT in FY14 declined to Rs 42.000Million in FY 14, down from Rs 516.000 Million in FY 13. The business earnings were adversely affected due to the one time exercise carried out to clear the trade channel and the old/ expired inventory. The Indian operations on the other hand continued healthy performance with earnings rising by 25% during FY 14.
- Sugar: PBIT stood at -ve Rs 54.000 Million in FY 14 as compared to +ve Rs 645. 000Million in the previous year due to swing in margins to –ve Rs 234 per Qtl from +ve Rs 196 per Qtl. Prices have improved post Feb 14, but still are below the level required for profitable operations.
- Cement: PBIT stood at –ve Rs. 3.000 Million visà- Vis a PBIT of +ve Rs. 173.000 Million in FY 13. The business suffered from the dual impact of rising input costs amid sluggish demand that weighed down on the profit margins.
- Finance Costs – Finance costs during FY14 were lower by 4% at Rs. 1490.000 Million due to decline in Debt during the year. Net Debt stood at Rs. 6830.000 Million as compared to Rs.14360.000 Million in FY 13.
- Net Profit stood at Rs.
2420.000 Million as compared to Rs. 2030.000 Million in the previous period.
- The Board of Directors has
recommended a dividend of 100% for the year as compared to 80% in the
previous year.
INDUSTRY OVERVIEW AND OUTLOOK:
India is the second largest producer and consumer of Urea in the world. Urea is the most preferred fertilizer and constitutes about 72% of entire fertilizer consumption in the country. Urea is the preferred choice of farmers in India on account of its low farm gate price (fixed by government) and high nitrogen content. The demand and consumption of Urea has been growing and the gap in demand/supply is currently being met by imports. During FY 14, total Urea production in India stood at ~ 22.7 Million MT. 7 Million MT of Urea was imported into India during the year to meet the domestic demand.
In FY 15, Government has notified a revised policy for one year with a marginal upwards revision of fixed costs at Rs. 500 per MT. This is expected to partially compensate for the increased costs and reduce the under recoveries in FY15. We hope that the Government will take steps to finalize a long-term policy which will ensure long-term viability of the existing capacity and provide confidence to the industry to take steps to enhance e capacity levels and Help in reducing the country’s dependence on imports.
Our Strategy
The company has been focused on continuously improving its operating efficiencies and reducing energy consumption along with focusing on initiatives which will help in containment of fixed expenses.
Shriram Farm Solutions
Shriram Farm Solutions business provides a complete range of farm inputs which include the Value added inputs such as Seeds (GM, Hybrid and OP), Crop Care Chemicals (Insecticide, Fungicide and Herbicide), Soluble Fertilizers, Micro-Nutrients etc. and Bulk Fertilizers like DAP, MOP and SSP. The Company not only aims to provide wide range of quality inputs, but also strives to provide customized solutions which include providing customized inputs by leveraging local knowledge and creating package of practices which will help farmers in enhancing their levels of productivity and profitability. The business is supported by a strong extension program called the SKVP (Shriram Krishi Vikas Program). This program, apart from being an Agronomy services platform providing latest technology and practices to the farmers and the Channel, also focuses on meeting its social responsibilities. Some of the activities include education programs for girl child, providing Scholarships along with vocational training for women. They believe, that new technologies/practices need to be disseminated to the farmers which will help them in increasing yields/profitability by meeting challenges of Drought, pests etc. The company lays strong emphasison strengthening its customer interface which will help in capturing the evolving trends in Agriculture and leverage technology to enhance performance of the Business, the Channel and the Farmer. The business is also supported by a strong distribution network which is present in 17 states, reaching ~ 0.4 Million farmers and ~ 30,000 retailers. The Company sells these Agri-Inputs under brand “Shriram” which is known for quality and has a strong brand image within the farming community.
Industry Overview and Outlook
The
Year 2013-14 saw a good monsoon with comprehensive coverage. In some areas,
excess and extended rainfall resulted in crop damage in khariff and late rabi.
Value added inputs saw growth indem and but the rising in put cost resulted in
pressure on margins. In the Bulk
Fertilizers (DAP/MOP), the industry started FY 14 with high inventory in the
system. International prices dropped sharply due to lower purchase by major
consuming countries. Abundant supply in domestic market resulted in higher
discount and longer credit in the domestic market. However, due to good monsoon
during the year, inventory in the country at the end of the season has
reduced. They expect that industry will
continue to grow in FY 15 if monsoons are normal, although climate factors such
as El Nino can impact performance. They do believe that this industry will
witness healthy growth in medium long term due to strong demand for food in the
next few years given the macro factors such as population growth, rising per
capital income etc. As per industry estimates, the demand for food will touch ~
330 Mn MT by 2020 and supply is projected to be about 280 Mn MT, resulting in
shortage of ~ 50 Mn MT. With land area under agriculture stagnant at 140 Mn
h.a, the country would need to improve the levels of productivity which would
include adoption of superior products (Agri-Inputs) along with other
initiatives.
.
HUMAN RESOURCES AND INDUSTRIAL/EMPLOYEE
RELATIONS:
DCM
Shriram’s focus on effective management of its Human Resources continues with
full commitment as before. The Company has all through the year stood by its
belief of developing people, taking care of their needs and ensuring that all
the processes and systems enable employees to give their best. The Company
believes that a genuine, authentic and customised rolling out a comprehensive
Talent & Leadership Development program, following through on the employee
engagement survey findings, aggressive positioning of the employer brand for
fresher’s and laterals and quite a few such initiatives across the entire Organisation.
The Company has successfully implemented Balanced Scorecard covering nearly 280
roles & positions, supported by Accenture Consulting. The BSC, They
strongly believe, will go a long way in strengthening the Performance
Management System along with a sharper focus on results, outcomes and
deliverables. The Talent and leadership development journey has been embarked
upon to develop the existing leaders and groom the high potential talent of the
Organisation to take on higher roles & responsibilities, along with getting
mapped onto various leadership succession tracks. The initiative has been
partnered with Aon Hewitt. The Organisation has continued to measure the
engagement of its employees through a structured survey by the Corporate
Executive Board. It has been very insightful and useful in drawing out the HR
agenda / action plan for the year. Several initiatives have been taken to
strengthen the Employer Brand of DCM Shriram, including ‘Case Study’
Competition at Campus and ‘Alumni Connect’ for the former employees of the
Company.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2014 (Rs. in Million) |
31.03.2013 (Rs. in Million) |
|
Claims*
(excluding claims by employees where amount not ascertainable) not
acknowledged as debts: |
|
|
|
|
|
|
|
Sales tax matters |
13.300 |
13.300 |
|
Excise matters |
21.200 |
21.200 |
|
Additional premium on land |
81.100 |
81.100 |
|
Others |
59.300 |
59.300 |
|
Total |
174.900 |
174.900 |
NOTE: All the
above matters are subject to legal proceedings in the ordinary course of
business. In the opinion of management the legal proceedings, when ultimately
concluded, will not have a material effect on results of operations or
financial position of the Company
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10495242 |
15/01/2015 * |
968,600,000.00 |
PUNJAB NATIONAL BANK |
LARGE CORPORATE BRANCH, TOLSTOY HOUSE, TOLSTOY MARG, NEW DELHI - 110001, INDIA |
C42312736 |
|
2 |
10431900 |
10/12/2013 * |
1,160,000,000.00 |
STANDARD CHARTERED BANK |
(ACTING AS AN SECURITY AGENT) C D U, NARAIN MANZIL, 23 BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA |
B95427985 |
|
3 |
10336978 |
30/12/2011 |
8,797,000.00 |
DEPARTMENT OF BIOTECHNOLOGY |
6-8TH FLOOR, BLOCK NO.2, CGO COMPLEX, LODHI ROAD, NEW DELHI - 110003, INDIA |
B32716854 |
|
4 |
10322865 |
28/07/2014 * |
500,000,000.00 |
ING VYSYA BANK LIMITED |
23, BARAKHAMBA ROAD, NARAIN MANZIL, NEW DELHI - 110001, INDIA |
C17340183 |
|
5 |
10253888 |
09/12/2013 * |
107,500,000.00 |
GOVERNMENT OF INDIA-REPRESENTED BY IFCI |
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTIBUTION- KRISHI BHAWAN, NEW DELH- 110001, INDIA |
B95508263 |
|
6 |
10179961 |
29/09/2009 |
1,400,000,000.00 |
IDBI BANK LIMITED |
IRCS, 1, RED CROSS ROAD, NEW DELHI - 110 |
A71232516 |
|
7 |
10157481 |
15/05/2009 |
2,491,800,000.00 |
INTERNATIONAL FINANCE CORPORATION |
2121 PENNSYLVANIA AVENUE, N.W., WASHINGTON, D.C, NA, - 20433, UNITED STATES OF AMERICA |
A62340955 |
|
8 |
10158710 |
12/08/2010 * |
5,800,000.00 |
DEPARTMENT OF BIOTECHNOLOGY |
BLOCK 2,CGO COMPLEX, LODHI ROAD, NEW DELHI - 110003, INDIA |
A93576411 |
|
9 |
10144427 |
09/12/2013 * |
167,480,000.00 |
PRESIDENT OF INDIA - REPRESENTED BY IFCI LIMITED |
GOVERNMENT OF INDIA - MINISTRY OF CONSUMER AFFAIRS, FOOD
& PUBLIC DISTRIBUTION - KRISHI BHAWAN, NEW |
B95508586 |
|
10 |
10144430 |
09/12/2013 * |
174,200,000.00 |
PRESIDENT OF INDIA - REPRESENTED BY IFCI LIMITED |
GOVERNMENT OF INDIA - MINISTRY OF CONSUMER AFFAIRS, FOOD
& PUBLIC DISTRIBUTION - KRISHI BHAWAN, NEW |
B95507919 |
* Date of charge modification
FIXED ASSETS
- Land
- Building
- Leasehold
- Furniture and
Fixture
- Plant and
Equipments
- Vehicles
- Office
Equipment
- Computer
- Know How
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS
ON 31.12.2014
[RS.
IN MILLIONS]
|
Particulars |
3 Months Ended |
9 Months Ended |
||
|
31.12.2014 [Unaudited] |
30.09.2014 [Unaudited] |
31.12.2014 [Unaudited] |
||
|
|
|
|
||
|
1 |
(a) Net sates/income from operations (Net of excise duty) |
11808.300 |
13748.000 |
42277.400 |
|
|
(b) Other Operating Income |
75.400 |
37.900 |
157.700 |
|
|
Total income from operations (net) |
11883.700 |
13785.900 |
42435.100 |
|
|
Expenses |
|
|
|
|
2 |
(a) Cost of materials consumed |
4555.600 |
1589.800 |
9016.800 |
|
|
(b) Purchases of stock-in trade |
3366.300 |
3451.000 |
12861.200 |
|
|
(c) Changes in inventories of finished goods.
work-in-progress and stock in trade |
-773.400 |
3942.700 |
3723.200 |
|
|
(d) Employee benefits expense |
1039.800 |
1104.900 |
3137.300 |
|
|
(e) Depreciation and Amortization Expenses |
261.800 |
268.300 |
812.300 |
|
|
(f) Other Expenses |
1397.100 |
1221.500 |
4720.600 |
|
|
(g) Power and Fuel |
1706.500 |
1663.900 |
5037.500 |
|
|
(h) Cost of Own Manufacturing goods |
0.000 |
-0.100 |
-0.200 |
|
|
Total expenses |
11553.700 |
13242.000 |
39308.700 |
|
|
Profit/ (Loss) from operations before other Income,
finance costs and exceptional Items (1-2) |
330.000 |
543.900 |
3126.400 |
|
3 |
Other Income |
164.700 |
125.000 |
447.600 |
|
4 |
Profit/ (Loss) from operations before other income,
finance costs and exceptional items (3+4) |
494.700 |
668.900 |
3574.000 |
|
5 |
Finance Costs |
259.400 |
295.200 |
832.300 |
|
6 |
Profit/ (Loss) from ordinary activities after finance cost
but before exceptional items (5-6) |
235.300 |
373.700 |
2741.700 |
|
7 |
Exceptional items |
0.000 |
0.000 |
0.000 |
|
8 |
Profit/ (Loss) from ordinary activities before tax (7+8) |
235.300 |
373.700 |
2741.700 |
|
9 |
Tax expenses |
-266.400 |
-108.500 |
-28.700 |
|
|
Net Profit / (Loss) from ordinary activities after tax
(9-10) |
501.700 |
482.200 |
2770.400 |
|
|
Extraordinary item (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
|
Net Profit / (Loss) for the period (11-12) |
501.700 |
482.200 |
2770.400 |
|
10 |
Cash Profit |
780.400 |
585.200 |
3403.100 |
|
11 |
Paid up equity share capital (Face Value of Rs2/- each) Reserve excluding Revaluation Reserve |
326.400 |
326.400 |
326.400 |
|
|
(a) Basic |
3.09 |
2.97 |
17.05 |
|
|
|
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of shares |
58672343 |
58672343 |
58672343 |
|
|
- Percentage of shareholding |
36.12 |
36.12 |
36.12 |
|
2 |
Promoters and Promoter group shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of shares |
103743794 |
103743794 |
103743794 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group) |
100.00 |
100.00 |
100.00 |
|
|
- Percentage of shares (as a % of the total Share Capital of the Company) |
63.88 |
63.88 |
63.88 |
|
|
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
|
|
Received during the quarter |
19 |
|
|
|
|
Disposed off during the quarter |
19 |
|
|
|
|
Remaining unresolved at the end of the quarter |
Nil |
|
|
SEGMENT WISE REVENUE RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF
THE LISTING AGREEMENT
|
Particulars |
3 Months Ended |
9 Months Ended |
||
|
31.12.2014 [Unaudited] |
30.09.2014 [Unaudited] |
31.12.2014 [Unaudited] |
||
|
|
|
|
||
|
1 |
Segment Revenue |
|
|
|
|
|
Fertilizer |
2114.900 |
1749.500 |
5561.100 |
|
|
Shriram Farm Solutions |
2816.300 |
4389.800 |
11692.200 |
|
|
Bioseed |
355.300 |
341.800 |
4446.700 |
|
|
Sugar |
1695.700 |
2599.900 |
7103.200 |
|
|
Hariyali Kisaan Bazzar |
1198.700 |
1110.600 |
3682.300 |
|
|
Chloro Vinyl |
2936.900 |
2817.000 |
9340.000 |
|
|
Cement |
312.200 |
349.500 |
1029.200 |
|
|
Others |
490.100 |
459.700 |
1476.800 |
|
|
Total |
11920.100 |
13817.800 |
44331.500 |
|
|
Less: Inter-Segment revenue |
36.400 |
31.900 |
1896.400 |
|
|
Net Sales I Income
from Operations |
11883.700 |
13785.900 |
42435.100 |
|
|
|
|
|
|
|
2 |
Segment Results Profit I (Loss) (before tax, finance cost and exceptional items) from Segment |
|
|
|
|
|
Fertilizer |
180.700 |
54.900 |
351.400 |
|
|
Shriram Farm Solutions |
224.700 |
278.600 |
707.800 |
|
|
Bioseed |
(125.100) |
(182.100) |
645.200 |
|
|
Sugar |
(210.000) |
4.800 |
(124.800) |
|
|
Hariyali Kisaan Bazzar |
15.100 |
(4.200) |
22.000 |
|
|
Chloro Vinyl |
599.700 |
718.500 |
2449.800 |
|
|
Cement |
(68.200) |
(19.600) |
(39.600) |
|
|
Others |
1.200 |
(31.500) |
(49.500) |
|
|
Total |
618.100 |
819.400 |
3962.300 |
|
|
Less: |
|
|
|
|
|
i) Finance costs |
259.400 |
295.200 |
832.300 |
|
|
ii) Other un-allocable expenditure net off un-allocable income l expenditure |
123.400 |
150.500 |
388.300 |
|
|
Total Profit(Loss)
before Tax |
235.300 |
373.700 |
2741.700 |
|
|
|
|
|
|
|
3 |
Segment Capital employed |
|
|
|
|
|
Fertilizer |
3277.900 |
1820.000 |
3277.900 |
|
|
Shriram Farm Solutions |
1775.600 |
3834.400 |
1775.600 |
|
|
Bioseed |
3198.400 |
2724.600 |
3198.400 |
|
|
Sugar |
6074.900 |
5695.900 |
6074.900 |
|
|
Hariyali Kisaan Bazzar |
1733.000 |
1876.300 |
1733.000 |
|
|
Chloro Vinyl |
4864.700 |
5129.800 |
4864.700 |
|
|
Cement |
92.700 |
131.200 |
92.700 |
|
|
Others |
839.300 |
822.500 |
839.300 |
|
|
Total Segment
Capital Employed |
21856.500 |
22034.700 |
21856.500 |
Note:
1. In accordance with the accounting policy consistently followed by the Company for interim results, the off-season expenditure aggregating Rs. 54.400 Million for the quarter and Rs. 373.100 Million for the nine months period ended December 31, 2014 respectively (corresponding quarter and nine months last year: Rs. 121.300 Million and Rs. 468.700 Million respectively) has been deferred for inclusion in the cost of sugar to be produced in the remaining part of the financial year.
2. Some of the business segments are of seasonal nature and accordingly impact
the results in the respective quarters based on seasonality of operations.
3. With effect from April 1, 2014, depreciation on fixed assets is computed in
accordance with Schedule II of the Companies Act 2013. Consequent thereto,
depreciation charge for the quarter and nine months is lower by Rs. 49.800
Million and Rs. 129.300 Million respectively.
4. Previous period figures have been recast, wherever necessary.
5. The above results were approved and taken on record by the Board of
Directors in their meeting held on February 3, 2015.
PRESS LEASE:
DCM Shriram Limited announces its Q3 FY15 financial results
Net Profit for Q3 FY15 at Rs. 274. 000 Million (last year Rs. 443. 000
Million);
Net Profit 9M FY15 at Rs. 2510.000 Million (last year Rs. 1600.000
Million)
Sharp reduction in prices of Chloro-Vinyl products and Sugar impacted
the earnings during the quarter. Balance Sheet continues to be strong.
New Delhi, 3rd Feb 2015: DCM Shriram Limited announced its Q3 and 9M FY15 financial results today.
Q3 ‘15 – HIGHLIGHTS:
- Net Revenues at Rs. 119710.000 Million vis-à-vis Rs. 145220.000 Million in Q3 FY14
- Lower volumes in Sugar, which is a result of lower production in the last season, an Industry phenomenon
- Lower Volumes in Bulk fertilizer, as per plan to optimize sales of Bulk fertilizers
- Steep decline in prices of Chloro-Vinyl and Sugar impacted PBDIT for the quarter, which stood at Rs. 5450.000 Million vs. Rs. 11220.000 Million in same period last year:
- Chlor-Alkali prices for Dec 14 were down 15% over Sept 14, PVC prices were down 17.5% over Sept 14.
- Sugar prices were down 10% over Sept 14. Operating margin is negative ~Rs. 250 per Qtl
- Biased International operations faced challenges on account of Sales returns due to lower sales to farmers and subsequent Inventory write-off
- Performance of Farm Solutions and Fertilizer businesses improved.
- Prices have stabilized in Jan 15 at Dec ’14 levels
- Finance charges at Rs. 2610.000 Million, lower by 19.3% y-o-y
- Net Debt at Rs 4910.000 Million (Dec 31, 2014), down from Rs 6830.000 Million (Mar 31, 2014)
- PAT at Rs. 2740.000 Million vs. Rs. 4430.000 Million. Tax during the quarter was -ve Rs. 2590.000 Million due to higher tax provisioning in earlier quarters
9M ‘15 – HIGHLIGHTS
- Net Revenues at Rs. 432990.000 Million vis-à-vis Rs. 470300.000 Million in 9M FY14 primarily due to lower volumes in Sugar and Bulk fertilizers
- PBDIT stood at Rs. 41720.000 Million vs. Rs. 39650.000 Million in same period last year, up 5.3 %:
a) Bioseed up at Rs. 460.000 Million vs Rs 360.000 Million for same period last year, led by robust performance of BT cotton in India Operations during Kharif ’14.
b) Farm Solutions and Fertilizer business improved performance
c) Sugar losses were lower than same period last year, partly due to receipt of cane price subsidy of Rs. 190.000 Million relating to SY 2013-14
d) Chloro-Vinyl recorded lower profits primarily in Q3FY15, due to sharp decline in prices during the quarter
3. Finance cost sharply lower by Rs. 3660.000 Million, at Rs. 8420.000 Million
4. PAT at Rs 2510.000 Million (LY Rs 1596.000 Million)
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 witnessed a challenging operating environment in Q3’15 with sharp reduction in prices of Chlor-alkali, PVC, Cement and Sugar. The prices have seen some stability in Jan 15 at the reduced levels.
Crushing for Sugar season 2014-15 has started satisfactorily after U.P. State government announced a more reasonable cane pricing policy. They expect the same would be implemented in the right spirit going forward. There is however an need for policy measures to arrest the downward movement in Sugar prices
They are buoyant about the performance of our Bioseed India business. Bioseed overseas business is expected to take couple of years to achieve sustainable growth. They are confident of growth of this business given the strong research program and healthy pipeline of products
The Shriram Farm Solutions and Fenesta businesses continues to perform satisfactorily.
Their balance sheet is strong and can comfortably handle cyclicality in our businesses. Their Capital expenditure programs are on track and will add value to the businesses going forward.”
FERTILISERS:
- Operating performance stable
- Revenue higher on account of increase in gas prices, volumes were also up marginally
- Improved profitability on account of energy savings and increase in reimbursement towards conversion costs by Rs. 500/MT under NPS III w.e.f. April 1 2014
- Subsidy outstanding since Aug ’14
Outlook
- Planned maintenance shutdown in end Q4 FY15
- Increase in domestic gas prices has added to the higher subsidy outstanding
SHRIRAM FARM
SOLUTIONS:
- Volumes of DAP/MOP are lower vis-à-vis last year - in line with plan to optimize Bulk Fertilizers, as required to support ‘Value added inputs’ business
- Value-added inputs’ revenues up 3.3% y-o-y, impacted by adverse weather conditions
- Overall operating margins have improved, led by Bulk Fertilizers
Outlook
- Company will continue to focus on growing the ‘Value added’ portfolio in terms of reach as well as offerings
- High subsidy outstanding in Bulk Fertilizers continues to be an area of concern
BIOSEED:
- Lower sales to farmers in international operations led to sales returns and inventory write offs
- Lower sales led to lower profits and inventory write offs in International business, reflecting longer than expected time being taken to stabilize
- Robust performance of Indian operation driven by growth in BT Cotton seed in Kharif ’14, partly moderated by lower offtake of Corn Seeds.
Outlook
- Bioseed India expected to sustain growth – cotton seeds launched in South and Central markets gaining traction and will likely augment performance
- Augmenting product portfolio and marketing efforts to drive growth in international operations – expected to take couple of years
- Medium to long term outlook buoyant given continuing focus on research and pipeline of products
- Performance of the business has seasonality, with Kharif being the major season in India
SUGAR:
- Revenues down primarily due to lower sales volumes, which was a result of lower production in the last season, an Industry phenomenon
- Sugar prices further softened in Q3 FY15, margins are negative even at operating level
- Earnings further subdued consequent to inventory write down in Q3, sugar inventory valued at Rs. 2,750 per quintal
- Co-gen power tariff revised upwards by Rs. 0.49 per unit w.e.f. April 1, 2014 – reflected in earnings
- Current season’s Sugar recovery trends so far better than last year
- Not accounted benefit of proposed Cane subsidy announced by UP Government, pending issue of the Notification
Outlook
- Cane Policy for SY 2014-15 a step forward. Full implementation in right spirit will help
- Cane crush expected to be marginally lower, may get mitigated partly by higher recoveries
CHLORO VINYL:
- Chlor- Alkali and PVC (Vinyl) prices have declined significantly in Q3 over Q2 FY15, putting pressure on margins
- There has been marginal reduction in input costs with decline in Salt prices and imported Coal prices
Outlook
- The prices after witnessing a low in Dec ’14 have stabilized in Jan ‘15. Further movement linked to global developments
- Company has renewed its focus on cost optimization
Cement:
- Volumes up by 3% y-o-y; realisations increased by 4% vs. last year
- Input costs continue to exert pressure on margins
HARYALI KISAAN BAZAAR:
- Current revenues from fuel sales only
- Sale of properties progressing slowly, expected to take about 2-3 years
Others:
Fenesta
- Company continues to focus on the ‘Retail’ segment
- ‘Retail’ segment’s order book and revenues up 44% and 31% respectively vis-à-vis last year
- Retail segment’s contribution to overall sales at 75%, up from 65% in Q3 FY14
- Business continues to breakeven at operating level
- Order booking registered good growth in Q3 with some revival in project orders.
- JV with Axiall Corporation for PVC compounding business is progressing as per plan
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report : No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.29 |
|
|
1 |
Rs.93.02 |
|
Euro |
1 |
Rs.67.36 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
RSM |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
YES |
|
--EPF |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.