DCM Shriram Ltd reported a robust financial performance for the fourth quarter of FY24, driven by strong growth across its core businesses and improved operating efficiency. The company’s net profit rose 51.9 percent year-on-year to ₹178.9 crore, up from ₹117.8 crore in the same quarter last year. This growth was supported by a 19.9 percent rise in revenue, which stood at ₹2,876.7 crore compared to ₹2,399.3 crore in Q4 FY23.
Operating performance also showed significant improvement. EBITDA came in at ₹405.3 crore, a rise of 52.8 percent year-on-year from ₹265.3 crore. The EBITDA margin expanded to 14.1 percent from 11.1 percent in the same period last year, reflecting stronger cost control and better utilization. In light of this performance, the board has recommended a final dividend of ₹3.40 per share for the year.
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While the quarterly numbers indicate a strong rebound, the company’s long-term earnings trend has been mixed. Over the past three years, compounded profit growth stands at a negative 17 percent, though profit growth for FY24 on a trailing basis is up 44 percent. Sales have grown at an 8 percent CAGR over the last three years, with consistent contributions from its chemicals, sugar, and agri-input businesses.
At a current market price of ₹1,059, the stock trades at a price-to-earnings ratio of 27.3, slightly above the industry average. Its price-to-book value is 2.33, with a book value per share of ₹449. DCM Shriram maintains a healthy balance sheet with a debt-to-equity ratio of 0.36 and an Altman Z score of 4.34, indicating strong financial stability. Return on equity for the year stood at 8.93 percent, and return on capital employed was 11.7 percent. The company reported a free cash flow of ₹281 crore for FY24, though three-year cumulative FCF remains negative due to prior investments and capital expenditure.
Shareholding data as of March 2025 shows promoters holding a steady 66.53 percent. FIIs have increased their stake to 4.10 percent, while DIIs hold 7.76 percent and the public owns 20.82 percent. The increase in foreign institutional investment signals growing confidence in the company’s earnings visibility and strategic positioning.
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DCM Shriram’s performance this quarter suggests that the company is on a recovery path, with margin expansion and strong cash generation pointing to improving fundamentals. If this momentum sustains, it could mark a turnaround phase for the diversified midcap player.
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