Mumbai: Shares of DCM Shriram Industries Ltd plunged 5% to ₹60.28 on Tuesday, hitting the lower band of the day after weak FY25 financial performance weighed on investor sentiment. The stock declined ₹3.17 in intraday trade, with selling intensifying through the session.
Revenue Drops Sharply
For FY25 (March 2025), the company reported:
Total Revenue: ₹5,901.55 crore vs ₹7,008.49 crore in FY24
Net Revenue from Operations: ₹5,736.77 crore vs ₹6,871.15 crore
This marks a ~16% year-on-year decline in total revenue, indicating demand pressure across segments.
Expenditure Remains Elevated
Although total expenditure declined to ₹5,071.61 crore from ₹5,620.79 crore in FY24, cost pressures remain visible:
Cost of materials consumed rose to ₹2,263.35 crore
Employee benefit expenses increased to ₹806.73 crore
Other expenses climbed to ₹2,208.45 crore
Inventory adjustments also swung sharply to a negative ₹409.97 crore versus a positive ₹298.85 crore in FY24, impacting operational efficiency.
Margins Under Strain
With revenue contracting and key cost components rising, operating margins appear compressed. While finance costs declined marginally to ₹59.88 crore, the benefit was insufficient to offset top-line weakness.
Market Reaction
The stock touched an intraday high of ₹66.45 before sliding to ₹60.28, reflecting aggressive profit booking. Volume stood at over 1.16 lakh shares, indicating active selling interest.
Outlook
The sharp revenue contraction and cost pressures have triggered near-term caution among investors. Sustained recovery in demand and margin stabilization will be critical for the stock to regain momentum.
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