DCM Shriram shares rallied 7% after the company reported a robust net profit for the quarter on the back of one-time exceptional gains. Also, the company’s revenue surged for the quarter, but the operating margin growth remained flat year-over-year.
DCM Shriram sees one-time gains in Q1
DCM Shriram’s net profit jumped six-fold in the first quarter of FY27 to Rs 692.7 crore, compared with Rs 113.3 crore in the corresponding period last year. The net profit for the quarter included a positive tax adjustment of Rs 474.3 crore due to favourable judgments from the Income Tax authority relating to previous years.
It also included one-time exceptional items of Rs 79.4 crore from profit on sale of land and stake sale for joint venture formation. The net profit for the quarter stood at Rs 147 crore if these items are excluded.
Its revenue surged 9.5% year-on-year to Rs 3,785 crore, up from Rs 3,455 crore. The revenue growth was driven by the Chemicals segment, which reported a 33% year-on-year increase, and Fenesta Building Systems, which surged 22% year-on-year.
On the operating front, the company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 11% to Rs 336.49 crore, compared with Rs 303.52 crore a year earlier. The company’s EBITDA margin expanded marginally to 8.9% from 8.8% in the year-ago quarter.
DCM Shriram share price performance
The share price of DCM Shriram has risen 2.3% in the last five trading sessions. The stock has changed a little over the past one month and has dropped 12% in the last six months. DCM Shriram’s share has erased over 26% of investors’ wealth in the past one year.