DCM Shriram : Result Presentation - Q2 FY 19

DCM Shriram Ltd.

Q2 & H1 FY19 - Results Presentation

October 29, 2018

Safe Harbour

Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. DCM Shriram Ltd. will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect

subsequent events or circumstances.

All figures are consolidated unless otherwise mentioned

Table of Content

Title

Slide No.

Q2 FY19

4-7

Key Highlights 4-5

Financial Snapshot 6

Segment Performance 7

H1 FY19

8-9

Financial Snapshot 8

Segment Performance 9

Q2 FY19 Performance Overview & Outlook 10-13

Projects under Implementation 14

Management's Message 15

Segmental Details 16-31

Chloro-Vinyl Businesses 17-21

Sugar 22-24

Agri Input Businesses 25-28

Other Businesses 29-31

About Us & Investor Contacts

32

1. Net Revenues up by 6% (Rs 1,700 crore vs Rs 1,605 crore for same period last year): a. Own Products - Revenues increased by 7% YoY.

• i. Chemicals - Revenues up by 23% YoY with increase in net realizations by 16% and volumes gain of 5%.

• ii. Sugar - Overall revenues lower by 7% YoY. Sugar revenue down by 23% with prices down by 14% and volumes down by 9% due to sales restriction by central government. Distillery revenues mitigated partly the lower Sugar revenues.

• iii. Fenesta - Revenues up by 16% YoY led by retail segment.

b. Traded Products - Overall Revenues from traded products declined by 1% YoY.

• i. Revenues of bulk fertilizers and Haryali Kisaan Bazaar (Fuel Pumps) down by 31%, part of the plan to reduce these activities.

• ii. Revenues of value added agri-inputs improved by 40%.

2. PBDIT stood at Rs 313 crore vs Rs.306 crore over same period last year. The profit for current year is after charging sugar off season expenses of Rs 31.6 crore for Q2 FY19 (Rs 37.3 crore for H1 FY19). Such expenses were being deferred for interim results till last year.

• a. Chemicals - PBDIT at Rs 198 crore up by 21% YoY, with higher volumes (up 5%) and higher realizations.

• b. Plastics - PBDIT down by 55% YoY at Rs 16 crore due to higher input costs and lower volumes resulting from shutdown of 10 days.

• c. Sugar - Overall PBDIT at Rs 98 crore up by 20% YoY. Sugar PBDIT at Rs 44 cores declined by 46% YoY even after inventory revaluation gain of Rs 48 crore. Sugar prices at Rs 3,207/ Qtl for Q2 FY19 down 14% vs last year. Distillery contributed to the segment earnings, off-setting lower earnings from sugar.

• 3. PAT stood at Rs 169 crore vs Rs 172 crore for same period previous year. EPS for the quarter stood at Rs 10.56 vs Rs 10.59 in Q2 FY18.

• 4. Gross Debt as on September 30, 2018 stood at Rs. 915 crore vs. Rs 673 crore as on September 30, 2017. Cash and Cash equivalents stood at Rs. 456 crore vs Rs. 717 crore for the same period.

• 5. Commissioned 168 TPD additional Caustic Soda capacity at Kota and 10 TPD Aluminum Chloride at Bharuch. Will contribute to the revenues and earnings in H2 FY19.

• 6. Projects under implementation at investment of ~ Rs. 1,150 crore over next 4-5 quarters in Sugar and Chloro-Vinyl segments, to be commissioned in phases.

• 7. Interim Dividend - The Board declared an interim dividend of 200% (LY: 200%) amounting to Rs 75.20 crore (including DDT).

• 8. Company completed the share buy-back program on 23rd October, 2018. 64.74 lac shares, representing 3.99% of capital, were bought and extinguished at a total cost of Rs 249.999 crore plus incidentals.