DCM Shriram Reports Strong Q3 FY24-25 Results Amid Rising Debt Concerns

Jan 20 2025 12:03 PM IST
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DCM Shriram's financial results for Q3 FY24-25 highlight significant growth, with Profit Before Tax reaching Rs 344.43 crore and Profit After Tax at Rs 262.14 crore. Net sales hit a five-quarter high of Rs 3,366.81 crore, while operating profit also marked a peak, despite rising interest expenses and a higher Debt-Equity Ratio.
DCM Shriram has reported its financial results for the third quarter of FY24-25, showcasing notable growth across several key metrics. The company's Profit Before Tax (PBT) reached Rs 344.43 crore, reflecting a significant change compared to the average PBT of Rs 170.12 crore over the previous four quarters. Profit After Tax (PAT) also saw a substantial rise, reaching Rs 262.14 crore, which is a marked shift from the average of Rs 130.38 crore in prior quarters.

Net sales achieved a five-quarter high at Rs 3,366.81 crore, indicating a favorable trend in sales performance. Operating Profit (PBDIT) reached Rs 495.99 crore, the highest recorded in the last five quarters, accompanied by an operating profit margin of 14.73%, suggesting enhanced operational efficiency.

Despite these positive developments, DCM Shriram is navigating challenges, including the highest quarterly interest expense recorded at Rs 42.77 crore, which reflects an increase quarter-on-quarter. Additionally, the Debt-Equity Ratio has risen to 0.33 times, the highest in the last five half-yearly periods, indicating a shift towards increased borrowings to support operational needs.

In light of these results, there have been evaluation changes regarding the stock's score.

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