DCM Shriram buzzing with activity

DCM Shriram is seeing a lot of action today. The stock price hit an intra high at Rs.245, up over 12% and it is now up 7% at Rs.233. The company’s 52-week high stands at Rs.286.45.

The activity on the counter is on good news about its expansion. The company informed the exchanges yesterday late evening that it has successfully commissioned additional captive power generation capacity at its Chlor-alkali unit in Bharuch (Gujarat).

With this expansion, the total coal based captive power generation at the Bharuch (Gujarat) unit now stands at 115 MW. The increased power generation capacity will meet the power requirements of its Chloro-alkali unit at Bharuch wherein the expansion of Chlor-alkali capacity to 1013 TPD was completed.

The company had ended Q2FY17 with a 48% (YoY) rise in net profit at Rs.91 crore despite a 4% drop in net sales at Rs.1359 crore. A lower cost, lower interest outgo and tax is what helped boost the bottomline.