SRF Q1 PAT climbs 123% yoy to Rs395cr, revenue rises 75%; Stock up 1%

The company’s chemicals (up 58%), Packaging Films (up 54%), and Technical Textiles (251%) businesses grew during the quarter.

Jul 29, 2021 10:07 IST India Infoline News Service

SRF Limited, a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates on Wednesday announced its consolidated financial results for the first quarter ended June 30, 2021.

The consolidated revenue of the company grew 75% from Rs1,545cr to Rs2,699cr in Q1FY22 when compared with Corresponding Period Last Year (CPLY). The company’s Earnings before Interest and Tax (EBIT) increased 102% from Rs295cr to Rs595cr in Q1FY22 when compared with Corresponding Period Last Year (CPLY).

The company’s Profit after Tax (PAT) increased 123% from Rs177cr to Rs395cr in Q1FY22 when compared with CPLY.

The company’s board of directors approved an interim dividend at the rate of 120%, amounting to Rs12 per share.

At around 10.20 AM, SRF Ltd was trading at Rs7794.00 per piece up Rs72.10 or 0.93% from its previous closing of Rs7,721.90 per piece on the BSE.

“It has been an excellent quarter for the company despite the short-term challenges emanating from the lockdowns. We worked on various countermeasures to ensure that we performed well. Going forward, I remain cautiously optimistic of our performance. The re-emergence of COVID-19 in some of our key markets along with a significant increase in global freight rates remain a risk for us,” Managing Director, Ashish Bharat Ram, said.

The company’s chemicals business reported an increase of 58% in its segment revenue from Rs705cr to Rs1,114cr during Q1FY22 over CPLY. The operating profit of the Chemicals Business increased 151% from Rs89cr to Rs222cr in Q1FY22 over CPLY.

“During the quarter, the Specialty Chemicals Business performed well owing to higher sales from exports and domestic markets,” company said.

The Packaging Films Business reported an increase of 54% in its segment revenue from Rs677cr to Rs1,041cr during Q1FY22 when compared with CPLY. The operating profit of the Packaging Films Business increased 7% from Rs221cr to Rs237cr in Q1FY22 over CPLY.

“During the quarter, while the domestic demand for BOPET films remained muted, we witnessed healthy demand for BOPP films,” company said.

The Technical Textiles Business reported an increase of 251% in its segment revenue from Rs140cr to Rs493cr during Q1FY22 over CPLY. The operating profit of the Technical Textiles Business increased 1,054% from Rs(14)cr to Rs134cr in Q1FY22 over CPLY.

“Re-structuring of margin profile with long-term customers has contributed to the overall performance of the Technical Textiles Business,” company said.

The Other Businesses reported an increase of 126% in its segment revenue from Rs24cr to Rs54cr in Q1FY22 when compared with CPLY. The operating profit of the Other Businesses increased 814% from Rs(0.28)cr to Rs2cr in Q1FY22 over CPLY. Both the Coated and Laminated Fabrics Business performed well in a difficult external environment.

The company’s board has approved a project for Integrated Expansion of Fluorocarbon based Refrigerant Capacity at Dahej at a projected cost of Rs550cr to meet the growing demand for refrigerants in the domestic and exports market and is expected to be completed in twenty-four months.

To cater to the growing power requirements of new and upcoming plants at Dahej, the Board has approved the installation of 200 KV grid at a projected cost of Rs135cr.

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