DCM Shriram Limited Q1 FY'25 Earnings Conference Call Summary
Overview
• Date: July 25, 2024
• Focus: Unaudited financial results for Q1 FY'25 (ending June 30, 2024)
• Key Executives: Ajay Shriram (Chairman), Vikram Shriram (Vice Chairman)
Economic Insights
• Resilience of the global economy and India's economic momentum highlighted.
• Strategic focus on growth through:
• Capacity expansion
• Technology
• Sustainability
Business Performance
• Chemicals Business:
• Stable caustic prices and increased production capacity.
• Challenges in PVC market and sugar/ethanol sectors due to rising costs and government policies.
• Shriram Farm Solutions (SFS):
• Strong double-digit revenue growth driven by seeds, crop protection, and specialty plant nutrition.
• Launched six new products, including two from R&D.
• Fertilizers segment faced a 13% revenue decline due to maintenance shutdown.
• Bioseed division expanded with novel hybrids and international operations.
Financial Highlights
• Net revenues: Rs. 2,876 crore (up from Rs. 2,780 crore YoY).
• PBDIT: Increased by 49% to Rs. 274 crore.
• Chloro-Vinyl segment: 15% revenue increase.
• Sugar business: 57% drop in PBDIT due to higher production costs.
Operational Insights
• Fenesta Building Systems: Grew by 7% YoY, but margins compressed due to fixed costs.
• Lower recovery rates in Uttar Pradesh increased costs for mills.
• Caustic soda volume growth anticipated, with significant capacity utilization expected by year-end.
Future Prospects
• Ongoing evaluations for expanding chlorine downstream opportunities.
• Commissioning of epichlorohydrin plant expected by early next quarter.
• Trials for hydrogen peroxide and epichlorohydrin plants underway, with commercial production expected in Q3.
Conclusion
• Ajay Shriram emphasized commitment to growth, sustainability, and stakeholder value.

DCM Shriram Limited Q4 FY '24 Earnings Conference Call Summary
Key Highlights
• Date of Call: May 7, 2024
• Participants: Key executives including Chairman Ajay Shriram
Economic Environment
• Ongoing uncertainty due to:
• Geopolitics
• Climate change
• Health issues
• Emphasis on operational resilience and sustainability initiatives
• Commitment of INR 300 crore towards sustainability-linked loans
Financial Performance
• Overall performance met expectations:
• Challenges in Chloro-Vinyl segment due to excess capacity and global supply issues
• Positive results in sugar and ethanol sectors
• Future optimism with upcoming capital expenditures:
• Commissioning of caustic soda expansion and new hydrogen peroxide plant
• Challenges in Chlor-Alkali and Vinyl sectors due to pricing pressures
Sugar Market Insights
• Global sugar market expected slight surplus:
• Prices strong above $550 per ton
• Domestic prices in India lower but expected to rise
• Projected decrease in India's sugar production for 2023-2024 season:
• Down by 0.8 million metric tons to 32 million metric tons
• Estimated season-end inventory of 8 million metric tons
• Domestic demand growing to around 29 million metric tons
Ethanol Production
• Indian government aims for 15% blending target:
• Challenges include limited sugar diversion and state policies
• Sugar season difficulties:
• Lower sugarcane crush and recovery rates
Segment Performance
• Sugar business:
• 6% revenue decline to INR 879 crore
• PBDIT increased by 11% to INR 236 crore
• Other segments:
• Fenesta Building Systems showed strong growth
• Shriram Farm Solutions and Bioseed reported positive developments
Q&A Session Highlights
• Chlorine Production:
• Strategy for managing increased chlorine production discussed
• Customer Demand:
• Subdued demand in certain sectors, optimism for growth in aluminum sector
• Value-Added Products:
• Hydrogen contributes 60-70% of total earnings
• Debt Management:
• Current blended cost of debt around 7.5%
• Target debt-to-EBITDA ratio of 1.5x to 2x
• Future Capital Allocation:
• Exploring new growth avenues, including epoxy materials
Conclusion
• Ajay Shriram emphasized commitment to growth and sustainability through new projects and capacity enhancements.

DCM Shriram Limited Q3 FY'24 Earnings Conference Call Summary
Overview
• Date: February 2, 2024
• Discussed unaudited financial results for Q3 and nine months ending December 31, 2023.
• Key executives: Chairman Ajay Shriram, Vice Chairman Vikram Shriram.
Economic Context
• Global economic slow recovery with geopolitical tensions.
• Challenges: inflation and interest rates.
• Chloro-Vinyl segment facing price pressures due to oversupply and imports.
Sector Performance
• Chemicals:
• Subdued demand for Caustic soda; continued pressure expected.
• Focus on efficiency and sustainability initiatives.
• Vinyl Market:
• High interest rates affecting housing demand; negative margins for PVC.
• Sugar Segment:
• Balanced demand and supply; domestic production estimates revised upward.
• Challenges in the ethanol industry due to government restrictions.
Company Initiatives
• Expansion projects: new potash fertilizer project and ongoing sugar operations.
• Fenesta reported strong growth with a 9% rise in bookings.
• Agri business, particularly Shriram Farm Solutions, showed positive performance.
Financial Highlights
• Q3 revenues declined 6% year-on-year to Rs. 3,035 crore.
• PBDIT fell 18% to Rs. 480 crore.
• Healthy balance sheet despite challenges in chemicals and fertilizers.
Q&A Highlights
• ECH Project:
• Payback period: 4-5 years; CAPEX: Rs. 500-600 crore.
• Caustic Soda Capacity:
• New capacity: 850 tons per day; total CAPEX: Rs. 800-900 crore.
• Demand Outlook:
• Short-term supply exceeds demand; medium to long-term growth expected.
• Power Plant:
• Cost savings: Rs. 10-12 crore monthly; peak utilization expected by FY26.
Strategic Focus
• Enhancing export flexibility with new flaker plant.
• Continued growth in agri business, particularly in seeds.
• Exploring opportunities in commodity and specialty chemicals.
Conclusion
• Commitment to efficiency and adaptability in a challenging business environment.
• Cautious optimism regarding caustic soda demand and strategic plans for capacity utilization.

DCM Shriram Limited Q2 FY24 Earnings Conference Call Summary
Company Performance and Challenges
• Date of Call: November 2, 2023
• Key Executives: Chairman Ajay Shriram and others
• Challenges:
• Geopolitical tensions
• Inflation
• Climate change impacts on chemicals sector
• Specific issues in caustic soda demand and pricing
Sector Highlights
• Sugar Industry:
• Stable performance, insulated from global dynamics
• Anticipated good crop and favorable domestic prices
• Agricultural Input Business:
• Expansion with new product launches and enhanced manufacturing capabilities
• Sustainability Initiatives:
• Emphasis on ESG objectives, including a sustainability-linked loan
Financial Overview
• Q2 FY24 Financials:
• Net revenues slightly declined to INR 2,708 crores
• Sugar business revenue increased by 57% year-on-year
• Challenges in chemical and fertilizer segments noted
• Strong balance sheet and cash flow maintained
Capital Expenditures and Projects
• Capex Update:
• Significant progress in caustic chlorine business, commissioning expected by Q4
• INR 500 crores planned for second half of the financial year
• Chlorine Management:
• Captive consumption and customer partnerships to manage output
Market Outlook
• Caustic Soda Pricing:
• Current realization around INR 26,000
• Stable pricing expected in the near term
• Ethanol Production:
• Impact of government policies on production and pricing discussed
Business Segment Updates
• Bioseed:
• Increased revenues in vegetable and corn seeds
• Upcoming launches expected to boost market share
• Fenesta Building Systems:
• Sustained growth in project and retail segments
• New strategic partnership for façade business
Renewable Energy Initiatives
• Renewable Power Capacity:
• Current capacity at 43 megawatts, with expected load of 22 megawatts
• Projected annual power cost savings of INR 100 crores from a new thermal power plant
Conclusion
• Future Growth:
• Management expressed optimism about future growth prospects
• Confidence in achieving a 15% to 20% growth rate in Fenesta business
• Market Stability:
• Domestic sugar prices stable between INR 38 and INR 40
• Closing Remarks:
• Management wished participants a happy Diwali.

DCM Shriram Limited Q1 FY'24 Earnings Conference Call Summary
Economic Environment
• Challenging global conditions due to:
• COVID-19 pandemic
• Russia-Ukraine conflict
• Climate change
• Resulting in:
• High inflation and interest rates
• Supply chain disruptions, especially in Chemicals and Vinyl sectors
Business Performance
• Sugar Business:
• Stable conditions reported
• Improved sugar cane crushing and recovery rates
• Revenue increased by 35% to Rs. 958 crore
• Shriram Farm Solutions and Fenesta:
• Growth noted in these divisions
• Chemicals Segment:
• Decline in product prices due to oversupply and reduced demand
• Challenges in Vinyl sector with subdued global prices
Sustainability Efforts
• Focus on reducing carbon emissions and improving resource utilization
• Significant portion of energy consumption from renewable sources
• New compressed biogas project approved
Financial Performance
• Q1 FY24 Results:
• Net revenues decreased by 2% to Rs. 2,780 crore
• Net debt rose significantly due to expansion projects
• Return on capital employed decreased from 37% to 21%
• Sugar Segment:
• Revenue growth driven by higher prices and volumes
Market Challenges
• Domestic realizations declining despite stable international prices
• Increased capacities in India affecting chlorine prices
• PVC segment facing price drops and oversupply issues from China
Ethanol Market
• No significant issues with off-take from OMCs
• Temporary logistics issues may arise
• Exploring grain procurement options for ethanol production
Operational Challenges
• Industries running at reduced capacities
• Companies optimizing production based on cost structure and market position
Future Outlook
• Commitment to growth, cost optimization, and community welfare
• Focus on R&D for value addition in chemicals sector
• Ongoing dialogue with the government regarding PVC imports from China
Closing Remarks
• Ajay Shriram emphasized the company's dedication to sustainable growth and thanked participants for their engagement.

DCM Shriram Limited Q4 and FY'23 Earnings Conference Call Summary
Economic Context
• Indian economy is growing steadily.
• Favorable environment compared to developed nations facing challenges.
Company Strategy
• Focus on managing volatility through:
• Increased scale
• Efficiency
• Diversification
• Significant CAPEX projects in sugar and chemicals sectors.
Sustainability Initiatives
• Commitment to sustainability highlighted:
• 50 MW Hybrid Green Power project.
• Efforts to reduce waste and carbon footprint.
Business Segment Performance
• Shriram Farm Solutions:
• Leadership in wheat seeds with new product launches.
• Plans to expand portfolio with crop protection chemicals and fertilizers.
• Bioseed:
• On track for turnaround with reduced losses.
• Fertilizer Segment:
• Revenue decline due to lower gas prices, but improved energy efficiency.
• Fenesta Building Systems:
• 13% revenue growth driven by project demand and new factories.
• Overall Performance:
• 20% increase in net revenues for FY23 despite challenges in chlor-alkali and vinyl segments.
• Final dividend recommended at 180%.
Market Insights
• Margins:
• Lower raw material prices may not significantly improve margins (around 17% expected).
• Sugar Sector:
• Production costs decreased; anticipated crushing of 650 lakh quintals of sugarcane.
• Ethanol Production:
• Increased production capacity; primarily B-Heavy ethanol.
Capital Expenditure (CAPEX)
• Total CAPEX program of Rs. 3,500 crore, with Rs. 600 crore commissioned.
• Expected returns from sugar CAPEX and new power plant.
Challenges and Outlook
• Cement Business:
• Linked to PVC production; facing losses but costs expected to decrease.
• Power and Fuel Costs:
• Significant year-on-year increase due to high-cost coal inventory.
• Future Prospects:
• Optimism about chemical expansions and recovery in the textile sector.
• Commitment to growth, efficiency, and sustainability emphasized by Ajay Shriram.

DCM Shriram Limited Q3 & Nine Months FY'23 Earnings Conference Call Summary
Financial Performance
• Positive start to 2023 despite global economic challenges.
• Revenue growth of 19% year-on-year in Q3 FY23, reaching Rs. 3,236 crore.
• Profitability impacted by rising costs in the chemicals sector.
Key Segments Overview
Chemicals
• High capacity utilization despite global pressures on caustic soda prices.
• Vinyl business facing demand challenges; strong domestic demand noted.
• Focus on innovation and sustainability.
Sugar
• Benefiting from balanced global supply and demand.
• Successful expansion projects underway.
Agri Inputs
• Strong performance from Shriram Farm Solutions, Bioseed, and Fertilizers.
• Leading position in wheat seed market; plans for new product launches.
• Fertilizer revenue increased by 78% year-on-year.
Fenesta
• Reported 31% year-on-year revenue growth.
• Projected EBITDA margins between 15%-20%.
CAPEX and Future Outlook
• CAPEX program of Rs. 3,500 crore aimed at enhancing resilience and growth.
• Optimistic about future growth while maintaining a healthy balance sheet.
Market Challenges and Responses
• Declining global prices of caustic soda discussed; industry working to maintain balance.
• High tax rates and MAT credit status addressed.
• China's reopening could benefit Indian exports.
Inventory and Production Insights
• Ethanol production volumes detailed; majority from B-Heavy ethanol.
• Seasonal fluctuations expected to affect future performance in Farm Solutions.
Strategic Initiatives
• New hydrogen peroxide plant projected to grow at 5-6% annually.
• Commitment to sustainable operations and strong financial positioning emphasized.
Closing Remarks
• Ajay Shriram reaffirmed the company's focus on sustainable expansion and financial health.