DCM Shriram shares rise after hydrogen peroxide plant goes live
The company’s share price rose after it announced it had successfully commissioned a new hydrogen peroxide plant.
In a stock exchange filing, DCM Shriram said, “We would like to inform you that the Company has today i.e. on August 19, 2024, commissioned its state-of-the-art Hydrogen Peroxide (H2O2) Plant of 52,500 TPA at its Chemical Complex at Jhagadia, Bharuch Dist., Gujarat.”
H2O2 will complement our chemical product portfolio and is a next step to the hydrogen produced in the chemical complex, the company said.
Hydrogen peroxide has a wide range of applications, from bleaching to water and wastewater treatment, chemical synthesis, food processing, mining, metallurgy and environmental applications.
Financial performance Q1
For the first quarter ended June 30, 2024 (Q1FY25), DCM Shriram reported a staggering 77.2 percent year-on-year increase in net profit to Rs 100.3 crore. This compares with a net profit of Rs 56.6 crore in the same quarter a year earlier (Q1FY24).
Operating revenue rose 4.6 percent from Rs 2,937.2 crore in the corresponding quarter of the previous fiscal year to Rs 3,073 crore.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 49.1 per cent to Rs 247.7 crore in the first quarter of this fiscal, from Rs 166.1 crore in the same period last year. The EBITDA margin improved to 8 per cent from 5.7 per cent in the previous year.
Earlier this year, in January, DCM Shriram Bio Enchem Ltd. (a wholly owned subsidiary) inaugurated a new sulphate of potassium (K2SO4) plant with an annual capacity of 4,600 metric tons.
Moreover, in January, the company signed a Memorandum of Understanding (MoU) with the Gujarat government to invest around Rs 12,000 crore in manufacturing of chemicals and petrochemicals in Bharuch by 2028.
DCM Shriram is part of the DCM Group, a large industrial conglomerate involved in the manufacturing of a wide range of products including textiles, sugar, chemicals, vanaspati, pottery, fans, sewing machines, electric motors and capacitors. DCM Shriram operates manufacturing facilities for fertilizers, chlorovinyls and cement at Kota (Rajasthan) and for chlor-alkali products at Bharuch (Gujarat).
At 9:33 AM, shares were trading 0.12 percent lower at Rs 1,143.55 per share. In comparison, BSE Sensex was up 0.17 percent at 80,563.01 levels.
First publication: Aug 20, 2024 | 09:37 AM IST