New Delhi, Oct 19 (PTI) DCM Shriram on Wednesday reported a 19 per cent decline in its net profit to Rs 128.12 crore for the quarter ending September on higher tax outgo.

Its net profit stood at Rs 157.87 crore in the year-ago period.

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Total income rose to Rs 2,907.79 crore in the second quarter of the current fiscal from Rs 2,198.61 crore in the corresponding period of the previous year, according to a regulatory filing.

DCM Shriram is primarily into sugar, fertiliser and chloro-vinyl businesses.

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Commenting on the result, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said the company reported a good overall performance during the second quarter of the fiscal.

The businesses continue to operate in a very volatile economic environment given the geo-political uncertainties, climate change, monetary tightening and fears of recession around the corner. India is better placed with strong GDP growth but is not immune to above factors, they said.

The company also gets impacted by these factors but has inherent strength in its business model and financials to manage the tough operating environment, said Ajay and Vikram Shriram.

The chemical business has performed well with reasonably firm product prices, a result of global supply chain imbalance. Vinyl business is facing headwinds of lower product prices with global decline in demand and higher sourcing from China. The major concern today for Chloro-Vinyl business is high energy prices which continue to be firm given the geo political instability, they said.

The company is taking steps to reduce our energy costs by setting up additional 120 MW energy efficient captive coal based power plant and tying up for 50 MW renewable power. It plans to take more such steps to reduce our costs as well as increase our green footprint.

"Sugar industry is poised for growth with favorable dynamics with respect to ethanol as well as Sugar. For the state of UP there is a need for better policy support to push exports as well as cane juice based ethanol," Ajay Shriram said.

The company is exploring opportunities to build multiple revenue streams beyond sugar and ethanol through circular economy.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)