DCM Shriram Shares Decline Most In Six Months After Q4 Profit, Revenue Fall

Shares of DCM Shriram Ltd. recorded their biggest fall since Nov. 1 on Tuesday after its revenue and net profit fell in the fourth quarter of fiscal 2024. Its margins also narrowed during the quarter.

Net profit of the company fell 36.89% year-on-year to Rs 118 crore during the quarter ended March 2024, according to an exchange filing. Revenue also fell 11.15% to Rs 2,399 crore.

• Revenue down 11.15% at Rs 2,399 crore.

• Ebitda down 23.38% at Rs 265 crore.

• Margin down 167 bps at 11.05%.

• Net profit down 36.89% at Rs 118 crore.

• Recommended final dividend of Rs 2.6 per share.

Global economic uncertainties continue to escalate with the addition of conflict in the Middle Eastern region, the brokerage said in its investor presentation. "Consequent supply chain disruptions and market volatility may lead to the deferment of rate cuts by the central banks, and this might have an adverse impact on overall business sentiments globally," it said.

"Our company, with its diverse set of businesses, continuous focus on cost efficiency, and strong balance sheet, has demonstrated that it is well equipped to handle the uncertain business environment," DCM Shriram said.

Shares of the company fell as much as 7.59%, the lowest level since April 26, before paring loss to trade 4.7% lower at 10:20 a.m. This compares to a 0.26% decline in the NSE Nifty 50.

The stock has fallen 5.94% year-to-date, but risen 12.35% in the last 12 months. Total traded volume so far in the day stood at 4.29 times its 30-day average. The relative strength index was at 55.67.

The one analyst tracking the company has a 'buy' rating, according to Bloomberg data.