Any current/future new fundraising through debt or equity?

There is no explicit mention of any new or planned fundraising through debt or equity in the current transcript. Ajay Shriram mentioned it is "too early to give" details on future debt numbers as it depends on government policies, especially regarding fertilizer subsidy dues. The company has raised a sustainability-linked loan, reflecting commitment to ESG objectives, but no details on size or timing. Capital expenditure (capex) plans are ongoing, with around INR 500 crores to be spent in H2 FY24, primarily funded through internal accruals and existing resources. No specific announcements rega

Any current/future capex/capital investment/strategic investment?

**Chemical Segment Capex:** - Total spent: ~INR2,500 crores (includes 120 MW power plant, aluminum chloride expansion, caustic soda expansion, epichlorohydrin (ECH), H2O2 projects) - Additional INR500 crores to be spent in H2 FY24 - Major projects to be commissioned by Q4 FY24: epichlorohydrin plant, 120 MW power plant (P120), caustic soda capacity expansion (850 TPD), hydrogen peroxide (H2O2) **Power Plant:** - New 120 MW power plant undergoing trial runs; commissioning expected November 2023 - Renewable power plant (43 MW) operational, contributing to cost savings **Sugar & D

Future growth expectations in sales/revenue/volumes?

Growth is occurring across all businesses except fertilizer manufacturing, which saw lower volumes and prices. (Ajay Shriram, Page 15) Fenesta business continues its growth momentum with expansion in extrusion capacity and strategic partnership for facades. (Pages 5-6) Shriram Farm Solutions growing on healthy volumes in research wheat and hybrid seeds; bioseed segment revenues up 46% YoY driven by vegetable and corn seeds. (Pages 5-6) Sugar volumes expected to be higher this year with a good crop and full utilization of expanded crushing capacity. (Ajit Shriram, Page 10) Ethanol volumes i

Future growth expectations in earnings/operating earnings/profits/EPS?

Near term outlook expects sugar prices to be range-bound due to current demand-supply; medium to long term sees positive upside in prices (Aditya & Ajit Shriram, Pages 15-16). Growth is occurring across all businesses except fertilizer manufacturing, indicating broad-based expansion (Ajay Shriram, Page 15). Fenesta and Shriram Farm Solutions continue growth momentum; Fenesta expanding extrusion capacity and forming strategic partnerships for geographic and product expansion (Page 5). New product launches in bioseed and strong pipeline expected to significantly increase market share in co

Current/ Expected Orderbook/ Pending Orders?

Fenesta Building Systems' order book is up 48%, driven by strong growth in the project segment. The company is experiencing healthy improvements in both project and retail segments with volume growth. There is ongoing capacity expansion (including new extrusion lines at Kota) to sustain growth momentum. Fenesta has formed a strategic partnership with a UAE-based firm for its facades business aiming for geographic and product expansion. A strong pipeline of products and launches in Shriram Farm Solutions, including wheat and vegetable seeds, supports future business growth and increased

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DCM Shriram LtdQ3 FY23Diversified

DCM Shriram Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,040P/E: 20.1Market Cap: ₹17.6K CrSector: Diversified

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Growth is occurring across all businesses except fertilizer manufacturing, which saw lower volumes and prices. (Ajay Shriram, Page 15)
→Fenesta business continues its growth momentum with expansion in extrusion capacity and strategic partnership for facades. (Pages 5-6)
→Shriram Farm Solutions growing on healthy volumes in research wheat and hybrid seeds; bioseed segment revenues up 46% YoY driven by vegetable and corn seeds. (Pages 5-6)
→Sugar volumes expected to be higher this year with a good crop and full utilization of expanded crushing capacity. (Ajit Shriram, Page 10)
→Ethanol volumes increased significantly with commissioning of 120 KLD multi-feed distillery; further expansions ongoing. (Pages 5, 10)
→New product launches lined up in bioseed for wheat and vegetables expected to increase market share. (Page 5)
→Overall focus on sustainable growth backed by strong balance sheet and cash flows. (Page 7)
→Geographic and SKU expansion planned for Fenesta. (Page 5)

Margin guidance

Category 3

→Near term outlook expects sugar prices to be range-bound due to current demand-supply; medium to long term sees positive upside in prices (Aditya & Ajit Shriram, Pages 15-16).
→Growth is occurring across all businesses except fertilizer manufacturing, indicating broad-based expansion (Ajay Shriram, Page 15).
→Fenesta and Shriram Farm Solutions continue growth momentum; Fenesta expanding extrusion capacity and forming strategic partnerships for geographic and product expansion (Page 5).
→New product launches in bioseed and strong pipeline expected to significantly increase market share in coming seasons (Page 5).
→Commissioning of new power plants and capacity expansions (e.g. caustic soda, distillery, sugar) expected to improve margins and operating efficiencies, with anticipated INR100 crores annual savings from power cost (Pages 11-12).
→Current challenges include subdued demand in chemicals and pressure on prices, but cost efficiencies and green energy projects are expected to improve margins (Pages 3-4).
→Overall, the company is focused on sustainable growth backed by a strong balance sheet and cash flows (Page 7).

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Fundraise plans

→There is no explicit mention of any new or planned fundraising through debt or equity in the current transcript.
→Ajay Shriram mentioned it is "too early to give" details on future debt numbers as it depends on government policies, especially regarding fertilizer subsidy dues.
→The company has raised a sustainability-linked loan, reflecting commitment to ESG objectives, but no details on size or timing.
→Capital expenditure (capex) plans are ongoing, with around INR 500 crores to be spent in H2 FY24, primarily funded through internal accruals and existing resources.
→No specific announcements regarding fresh fundraises via equity or additional debt were discussed during the call.

Order book

→Fenesta Building Systems' order book is up 48%, driven by strong growth in the project segment.
→The company is experiencing healthy improvements in both project and retail segments with volume growth.
→There is ongoing capacity expansion (including new extrusion lines at Kota) to sustain growth momentum.
→Fenesta has formed a strategic partnership with a UAE-based firm for its facades business aiming for geographic and product expansion.
→A strong pipeline of products and launches in Shriram Farm Solutions, including wheat and vegetable seeds, supports future business growth and increased market share.
→Overall, the company is optimistic about significantly increasing its market share in upcoming seasons based on a strong pipeline and product strength.

Capex plans

Yes

→**Chemical Segment Capex:**
→ - Total spent: ~INR2,500 crores (includes 120 MW power plant, aluminum chloride expansion, caustic soda expansion, epichlorohydrin (ECH), H2O2 projects)
→ - Additional INR500 crores to be spent in H2 FY24
→ - Major projects to be commissioned by Q4 FY24: epichlorohydrin plant, 120 MW power plant (P120), caustic soda capacity expansion (850 TPD), hydrogen peroxide (H2O2)
→**Power Plant:**
→ - New 120 MW power plant undergoing trial runs; commissioning expected November 2023
→ - Renewable power plant (43 MW) operational, contributing to cost savings
→**Sugar & Distillery Expansion:**
→ - New 2,100 TCD sugar plant expansion to be commissioned by sugar season 2024-25 (October 2024)
→**Fenesta Building Systems:**
→ - Strategic partnership with UAE-based firm for façade business; plans for manufacturing plant in India, details on capex/revenue potential under discussion
→**Sustainability-linked loan raised to support ESG objectives**

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