Group No.

Registration Section Class Name of PEER Reason for Work done by

for Number Roll Student Rating Giving the person
Assignment No. PEER
Rating
2 Q2239 A06 Siddharth 5 Well Analyse 4 news
12202147 Verma contributed
2 12202163 Q2239 A07 Suchita 5 Well Analyse 4 news
Panwar contributed
2 12202178 Q2239 A08 Yadav Sahil 5 Well Analyse 4 news
Harikant contributed & introduction
2 Q2239 A09 Gedda Satish 0

Annexure-V- Cover Page for Academic Tasks

Course Code: FINM542 Course Title: CORPORATE FINANCE -1

Course Instructor: Dr. Babli Dhiman & Amanjyot Singh Syan

Academic Task No.: CA 1 Academic Task Title: DCM SHRIRAM LTD.

Date of Allotment: Date of submission: 19/09/2022

Student’s Roll no: A06 Student’s Reg. no: 12202147

Evaluation Parameters: (Formatting 05 Marks, Language Used 05 Marks, Content 05 Marks, Analysis
10 Marks, Referencing 05 Marks)
Learning Outcomes: (I learned how to analyze news articles and also learned analysis of financial
statement of a company.)

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other
student’s work or from any other source except where due acknowledgement is made explicitly
in the text, nor has any part been written for me by any other person.
Student signature: Siddharth verma

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator‟s Signature and Date:

Marks Obtained: Max. Marks: …………………………

DCM SHRIRAM LTD INTRODUCTION

DCM Shriram Ltd. is a leading business conglomerate with

a group turnover of Rs. 9,849 crores. The business portfolio
of DCM Shriram comprises primarily of DCM Shriram, a
Spin-off from trifurcation of the reputed erstwhile DCM Group in 1990, is managed by Mr. Ajay
S. Shriram, Chairman & Senior Managing Director, Mr. Vikram S. Shriram, Vice Chairman &
Managing Director and Mr. Ajit .S. Shriram, Joint Managing Director along with a highly
professional executive team. DCM Shriram Sugar factories are located in Ajbapur, Rupapur,
Hariawan and Loni in Uttar Pradesh, with a combined installed capacity of 38,000 TCD (tonnes
crushed of sugarcane daily) and a power- generating capacity of 155 MW. It also has added two
Distilleries with a total capacity of 350 KLD Capacity. The Hybrid seed operations- ‘Bioseed’
started in Hyderabad (India) and have a global footprint with presence in South-East Asia with
research facilities. Fenesta windows fabrication units are located in Bhiwadi, Mumbai,
Hyderabad and Chennai. DCM Shriram, across its various businesses is strategically diversified
yet operationally integrated at a high level.

(FIG: DCM SHRIRAM PRESENCE ACROSS THE WORLD)

NEWS ANALYSIS

1. DCM Shriram Q1 PAT spurts 61% to Rs. 254 cr.

https://www.indiainfoline.com/article/capital-market-hot-pursuit/dcm-shriram-q1-pat-
spurts-61-to-rs-254-cr-122071900372_1.html

 PAT is directly proportional to the dividends paid to equity shareholders; more profit

after tax, better dividends are paid.

 When the PAT increase in Q1 then automatically the price of the share also get boost and
shareholders get the good profit through investing in such company.

2. DCM Shriram consolidated net profit rises 60.87% in the June 2022 quarter
(Sales rise 46.23% to Rs 2841.21 crore.)

https://www.indiainfoline.com/article/capital-market-results-announcements/dcm-shriram-
consolidated-net-profit-rises-60-87-in-the-june-2022-quarter-122071900368_1.html

 Net profit of DCM Shriram rose 60.87% to Rs 253.96 crore in the quarter ended June
2022 as against Rs 157.87 crore during the previous quarter ended June 2021. Sales
rose 46.23% to 2841.21 crore in the quarter ended June 2022 as against Rs 1942.92
crore during the previous quarter ended June 2021.
 Total income rose on a consolidated basis to Rs 2,198.61 crore during July-September
quarter from Rs 2,064.61 crore in the year-ago period. Expenses remained higher at Rs
1,970 crore as against Rs 1,910.48 crore in the said period.

3. Board of DCM Shriram recommends final dividend of Rs. 4.9 per share

https://www.indiainfoline.com/article/capital-market-corporate-news/board-of-dcm-shriram-
recommends-final-dividend-122050600333_1.html

 Paying dividend-allows companies to share their profits with shareholders, to thank

their ongoing support in the form of funds by higher return and to confirm them to
continuing the holding of the share.
 The dividend is typically determined by a long term earning forecasting & then
calculating a percentage of earning forecasting to be paid out. Under some policy
company may create a target payout ratio. Which is the amount (Dividend) given to a
shareholder in form of appreciation?

4. Board of DCM Shriram approves investment for captive power and expansion
purpose.

https://www.indiainfoline.com/article/capital-market-corporate-news/board-of-dcm-shriram-
approves-investment-for-captive-power-and-expansion-purpose-122051800580_1.html

(At meeting held on May 17 th May 2022) The Board of DCM Shriram at its meeting held on
17th May 2022 has approved an equity investment of Rs 65 crore for minimum 26% equity
stake in special purpose vehicle to be created for setting up a wind solar hybrid renewable
power project. The company will get 50 MW of renewable power supply from the SPV. The
Board also approved an investment of up to Rs. 57.10 crore to manufacture sulphate of
potash (K2SO4) with a capacity of 4600 TPA at its Hariawan (U.P) sugar facility.

5. DCM Shriram consolidated Net Profit rises 73.14% in the March Quarter 2022.

https://www.indiainfoline.com/article/capital-market-results-announcements/dcm-shriram-
consolidated-net-profit-rises-73-14-in-the-march-2022-quarter-122050600241_1.html

 Rise in net profit indicates that a company is more efficient at converting sales into actual
profit.
 Net profit of DCM Shriram rate 73.14% that means shareholder of the company will hold
the share for longer period of the time which helps them immediately earning per share.
 A rise in profit means that a company is able to effectively control its cost and provide
goods and services at a price significantly higher than its cost. Which will ultimately help
the company in Profit maximization.

6. DCM Shriram Renew to set up 50MW hybrid solar projects worth Rs. 800crore, stock
rallies- 4.5%

https://www.indiainfoline.com/article/news-top-story/dcm-shriram-renew-to-set-up-50mw-
hybrid-solar-projects-worth-rs800-crore-stock-rallies-4-5-122080400831_1.html

 DCM Shriram will move to renewables at an accelerated pace as it not only show focus
on sustainability concern that are critical but also reflect the green energy in increasingly
cost effective for businesses.
 This project is expected to to generate 250Million units of renewable energy every year.
 It can also effect market in such a way that market may discount the purposed merger
potential roadblocks.

7. DCM Shriram fixes record date for final dividend.

https://www.indiainfoline.com/article/news-top-story/dcm-shriram-renew-to-set-up-50mw-
hybrid-solar-projects-worth-rs800-crore-stock-rallies-4-5-122080400831_1.html
  After the declaration of dividend a stock price increases. DCM share price increases
1075 per share
 DCM dividend policy has positively significant impact on shareholders wealth and firm
performance.
 THE company has been consistently declared dividend for the last 5 years it impacts in
the overall maximization of the company

8 .DCM Shriram Limited has informed the exchange about voting result and scrutinizer
report of Annual General Meeting held on 19 July 2022.

https://www.indiainfoline.com/article/companies-announcements-nse/dcm-shriram-limited-
annual-general-meeting-122072100042_1.html

 In this Annual General meeting Confirmation of interim dividend and declaration of

final dividend was declared which brings positivity to shareholder.

9. DCM Shriram Industries consolidated net profits rises 54.57% in December 2021
quarter:

https://www.indiainfoline.com/article/capital-market-results-announcements/dcm-shriram-
industries-consolidated-net-profit-rises-54-57-in-the-december-2021-quarter-
122021400398_1.html

 The profits of the company has increased, this means that the company is in expansion
mode and the people will invest more in the company.
 The sales of the company has increased this interprets that the company has a high
market share which will attract more number of customers.

The net profits of the company are increasing that means the company is generating a good
revenue and the company is selling more.

10. DCM Shriram shoots up 8% after Q3 PAT jumps 38% YoY to Rs.350
crores.

https://www.indiainfoline.com/article/news-top-story/dcm-shriram-shoots-up-8-after-q3-pat-
jumps-38-yoy-to-rs350cr-122011900383_1.html
  The company generated high profits in the third quarter earnings of the financial year
2022 in comparison to 2021.
 Before the declaration the financial statements of the respective year the interim dividend
was announced to be 260%.
 The stock of the company was in demand on this day and due to this the prices rose up
which again shows that the company generated a good revenue.
 Surplus cash net debt on 31 December, 2021 which means the company had enough cash
to pay its debts, which shows a satisfactory liquidity position of the company.

11. DCM Shriram Ind Standalone Dec 2021 Net Sales Rs 519.44 Crore, Up 5.78% YoY.

https://www.moneycontrol.com/news/business/earnings/dcm-shriram-ind-standalone-december-
2021-net-sales-at-rs-519-44-crore-up-5-78-y-o-y-8094451.html

 The reported standalone quarterly figures of DCM Shriram Industries are as follows: Net

sales of Rs. Million in December 2021 was Rs. increase.
 December 2021 EBITDA was Rs. 50.54 crore, up 28.73% from Rs $3.926 billion in
December 2020.
 DCM Shriram Ind EPS down to Rs. It rose from Rs. 8.89 in December 2020 to Rs. 2.78
in December 2021.

12. DCM Shriram Consolidated March 2022 Net Sales at Rs 2,795.81 crore, up 27.63% Y-
o-Y.

https://www.moneycontrol.com/news/business/earnings/dcm-shriram-consolidated-march-2022-
net-sales-at-rs-2795-81-crore-up-27-63-y-o-y-8464411.html

 The net profits of the company are increasing which shows that the company is in a good
condition to pay off its debts.
 The increase in the net sales of the company shows that the company is working with
good conditions and has satisfactory liquidity position.
 The company is generating higher revenue that means the investors will pay more for the
shares of the company because of the good profits.
 The return on investments is increasing that means the company is going to generate
more benefits to the investors.