SRF

26 Jan 2022 , 08:35 AM

SRF consolidated net sales increased 55.88% to Rs 3345.87 crore in Q3FY22 compared to Q3FY21.  Sales of Technical Textile Business segment has gone up 46.54% to Rs 537.77 crore (accounting for 16.06% of total sales).  Sales of Chemicals and Polymers Business segment has gone up 57.67% to Rs 1,428.30 crore (accounting for 42.65% of total sales).  Sales of Packing Film Business segment rose 59.11% to Rs 1,275.99 crore (accounting for 38.10% of total sales).  Sales of Others segment has gone up 45.05% to Rs 107.05 crore (accounting for 3.20% of total sales).  Inter-segment sales rose Rs 2.23 crore to Rs 3.24 crore. 

Operating profit margin has declined from 26.38% to 26.34%, leading to 55.69% rise in operating profit to Rs 881.41 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 49.57% to 49.86%. Purchase of finished goods cost rose from 0.50% to 1.29%. Employee cost decreased from 6.99% to 5.93%. Other expenses fell from 17.88% to 17.66%. Power and Oil fuel cost fell from 8.62% to 8.60%.  

Other income fell 50.78% to Rs 10.67 crore.  PBIDT rose 51.77% to Rs 892.08 crore. Profit before interest, tax and other unallocable items (PBIT) have jumped 66.24% to Rs 795.53 crore.  PBIT of Technical Textile Business segment rose 67.10% to Rs 113.51 crore (accounting for 14.27% of total PBIT).  PBIT of Chemicals and Polymers Business segment rose 120.72% to Rs 419.24 crore (accounting for 52.70% of total PBIT).  PBIT of Packing Film Business segment rose 19.68% to Rs 254.21 crore (accounting for 31.95% of total PBIT).  PBIT of Others segment rose 3.75% to Rs 8.57 crore (accounting for 1.08% of total PBIT). 

PBIT margin of Technical Textile Business segment rose from 18.51% to 21.11%.  PBIT margin of Chemicals and Polymers Business segment rose from 20.97% to 29.35%.  PBIT margin of Packing Film Business segment fell from 26.48% to 19.92%.  PBIT margin of Others segment fell from 11.19% to 8.01%.  Overall PBIT margin rose from 22.27% to 23.75%. 

Provision for interest rose 3.23% to Rs 29.41 crore.  PBDT rose 54.24% to Rs 862.67 crore.  Provision for depreciation rose 13.58% to Rs 132.39 crore. 

Profit before tax grew 64.94% to Rs 730.28 crore.  Provision for tax was expense of Rs 224.74 crore, compared to Rs 118.5 crore.  Effective tax rate was 30.77% compared to 26.76%.

Net profit attributable to owners of the company increased 55.91% to Rs 505.54 crore. 

Promoters stake was 50.73% as of 31 December 2021 compared to 50.77% as of 31 December 2020.  . 

Commenting on the results, Managing Director, Ashish Bharat Ram said, ?Its been an outstanding quarter for the company. Except for the Technical Textiles segment, which was impacted by soft market conditions, every other segment performed exceedingly well. We remain cautiously optimistic of our performance going forward.?

Consolidated Q2FY22 Segment Results

The chemicals business reported an increase of 58% in its segment revenue from Rs 906 crore to Rs 1,428 crore during Q3FY22 over CPLY. The operating profit of the chemicals business increased 121% from Rs 190 crore to Rs 419 crore in Q3FY22 over CPLY. During the quarter, the fluorochemicals business performed exceedingly well on account of higher prices of certain key refrigerant products in critical international markets and increased export volumes in HFC blends. In addition, healthy contribution from the chloromethanes segment augmented the overall results.

The packaging films business reported an increase of 59% in its segment revenue from Rs 802 crore to Rs 1,276 crore during Q3FY22 when compared with CPLY. The operating profit of the packaging films business increased 20% from Rs 212 crore to Rs 254 crore in Q3FY22 over CPLY. The packaging films business performed very well during the quarter with both the domestic and international facilities delivering robust results.

The technical textiles business reported an increase of 47% in its segment revenue from Rs 367 crore to Rs 538 crore during Q3FY22 over CPLY. The operating profit of the technical textiles business increased 67% from Rs 68 crore to Rs 114 crore in Q3FY22 over CPLY. The technical textiles business witnessed healthy performance despite weak demand for Nylon Tyre Cord Fabrics during the quarter. Overall, the business continues to focus on operating efficiencies and running plants optimally.

The other Businesses reported an increase of 45% in its segment revenue from Rs 74 crore to Rs 107 crore in Q3FY22 when compared with CPLY. The operating profit of the other businesses increased 4% from Rs 8 crore to Rs 9 crore in Q3FY22 over CPLY. Both the coated and laminated fabrics business performed very well in a difficult external environment

For year-to-date (YTD) results analysis

Net sales of SRF have increased 53.38% to Rs 8884.24 crore.  Sales of Technical Textile Business segment has gone up 89.22% to Rs 1,588.58 crore (accounting for 17.86% of total sales).  Sales of Chemicals and Polymers Business segment has gone up 47.19% to Rs 3,668.31 crore (accounting for 41.25% of total sales).  Sales of Packing Film Business segment rose 46.57% to Rs 3,389.01 crore (accounting for 38.11% of total sales).  Sales of Others segment has gone up 60.00% to Rs 246.98 crore (accounting for 2.78% of total sales).  Inter-segment sales rose Rs 5.98 crore to Rs 8.64 crore. 

Operating profit margin has declined from 25.93% to 25.08%, leading to 48.34% rise in operating profit to Rs 2,227.91 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 46.82% to 49.81%.   Purchase of finished goods cost rose from 0.75% to 0.97%.   Employee cost decreased from 7.60% to 6.22%.   Other expenses fell from 19.24% to 18.52%.   Power and Oil fuel cost rose from 8.65% to 8.74%. 

Other income fell 14.35% to Rs 35.57 crore.  PBIDT rose 46.66% to Rs 2263.48 crore.  Profit before interest, tax and other unallocable items (PBIT) has jumped 56.35% to Rs 1,959.37 crore.  PBIT of Technical Textile Business segment rose 265.01% to Rs 380.01 crore (accounting for 19.39% of total PBIT).  PBIT of Chemicals and Polymers Business segment rose 97.07% to Rs 892.60 crore (accounting for 45.56% of total PBIT).  PBIT of Packing Film Business segment fell 1.29% to Rs 670.50 crore (accounting for 34.22% of total PBIT).  PBIT of Others segment fell 3.33% to Rs 16.26 crore (accounting for 0.83% of total PBIT). 

PBIT margin of Technical Textile Business segment rose from 12.40% to 23.92%.  PBIT margin of Chemicals and Polymers Business segment rose from 18.17% to 24.33%.  PBIT margin of Packing Film Business segment fell from 29.38% to 19.78%.  PBIT margin of Others segment fell from 10.90% to 6.58%.  Overall PBIT margin rose from 21.61% to 22.03%. 

Provision for interest fell 25.43% to Rs 80.24 crore.  PBDT rose 52.06% to Rs 2183.24 crore.  Provision for depreciation rose 15.18% to Rs 385.63 crore. 

Profit before tax grew 63.27% to Rs 1,797.61 crore.  Provision for tax was expense of Rs 514.34 crore, compared to Rs 284.19 crore.  Effective tax rate was 28.61% compared to 25.81%.

Net profit attributable to owners of the company increased 57.11% to Rs 1,283.27 crore. 

Promoters stake was 50.73% as of 31 December 2021 compared to 50.77% as of 31 December 2020. 

Full year results analysis

Net sales (including other operating income) of SRF has increased 16.51% to Rs 8400.04 crore.  Sales of Technical Textile Business segment has gone down 8.65% to Rs 1,240.11 crore (accounting for 14.75% of total sales).  Sales of Chemicals and Polymers Business segment has gone up 22.52% to Rs 3,644.89 crore (accounting for 43.35% of total sales).  Sales of Packing Film Business segment rose 26.41% to Rs 3,291.72 crore (accounting for 39.15% of total sales).  Sales of Others segment has gone down 16.64% to Rs 232.02 crore (accounting for 2.76% of total sales).  Inter-segment sales rose Rs 5.43 crore to Rs 8.70 crore. 

Operating profit margin has jumped from 20.18% to 25.54%, leading to 47.44% rise in operating profit to Rs 2,145.19 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 50.50% to 47.54%. Purchase of finished goods cost fell from 1.25% to 0.74%. Employee cost decreased from 7.42% to 7.34%. Other expenses fell from 20.89% to 19.06%. Power and Oil fuel cost fell from 9.21% to 8.47%.  

Other income rose 11.09% to Rs 54.49 crore. Profit before interest, tax and other unallocable items (PBIT) have jumped 46.24% to Rs 1,828.50 crore.  PBIT of Technical Textile Business segment rose 16.77% to Rs 176.90 crore (accounting for 9.67% of total PBIT).  PBIT of Chemicals and Polymers Business segment rose 42.36% to Rs 728.14 crore (accounting for 39.82% of total PBIT).  PBIT of Packing Film Business segment rose 61.60% to Rs 897.87 crore (accounting for 49.10% of total PBIT).  PBIT of Others segment fell 19.45% to Rs 25.59 crore (accounting for 1.40% of total PBIT). 

PBIT margin of Technical Textile Business segment rose from 11.16% to 14.26%.  PBIT margin of Chemicals and Polymers Business segment rose from 17.19% to 19.98%.  PBIT margin of Packing Film Business segment rose from 21.34% to 27.28%.  PBIT margin of Others segment fell from 11.41% to 11.03%.  Overall PBIT margin rose from 17.33% to 21.75%. 

Provision for interest fell 33.25% to Rs 133.95 crore.  Loan funds declined from Rs 3,354.76 crore as of 31 March 2020 to Rs 3,008.34 crore as of 31 March 2021.  Inventories rose to Rs 1,465.82 crore as of 31 March 2021 from Rs 1,201.23 crore as of 31 March 2020.  Sundry debtors were higher at Rs 1,274.56 crore as of 31 March 2021 compared to Rs 891.07 crore as of 31 March 2020.  Cash and bank balance rose to Rs 282.00 crore as of 31 March 2021 from Rs 125.47 crore as of 31 March 2020.  Investments rose to Rs 416.68 crore as of 31 March 2021 from Rs 202.66 crore as of 31 March 2020. 

Provision for depreciation rose 16.59% to Rs 453.08 crore.  Fixed assets increased to Rs 8,486.23 crore as of 31 March 2021 from Rs 7,760.26 crore as of 31 March 2020.  Intangible assets increased from Rs 0.62 crore to Rs 112.99 crore. 

Profit before tax grew 76.30% to Rs 1,612.65 crore. Provision for tax was debit of Rs 414.4 crore, compared to credit of Rs 1.2 crore.  Effective tax rate was 25.70% compared to negative 0.13%. Net profit attributable to owners of the company increased 30.83% to Rs 1,198.25 crore. 

Promoters stake was 50.77% as of 31 March 2021 compared to 52.32% as of 31 March 2020. 

Cash flow from operating activities increased to Rs 1,771.68 crore for year ended March 2021 from Rs 1,304.44 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 1,214.35 crore, compared to Rs 1,389.16 crore during the year ended March 2020. 

The board also approved a second interim dividend at the rate of 47.5 percent amounting to Rs 4.75 per share. Earlier on July 28, 2021, the board had approved the first interim dividend at the rate of Rs 12 per share.

The scrip is currently trading at Rs 2467

 

SRF : Consolidated Results
Particulars	2112 (03)	2012 (03)	Var. (%)	2112 (09)	2012 (09)	Var. (%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	3,345.87	2,146.41	56	8,884.24	5,792.39	53	8,400.04	7,209.41	17
OPM (%)	26.3	26.4		25.1	25.9		25.5	20.2
OP	881.41	566.12	56	2,227.91	1,501.86	48	2,145.19	1,454.94	47
Other Inc.	10.67	21.68	-51	35.57	41.53	-14	54.49	49.05	11
PBIDT	892.08	587.8	52	2,263.48	1,543.39	47	2,199.68	1,503.99	46
Interest	29.41	28.49	3	80.24	107.6	-25	133.95	200.68	-33
PBDT	862.67	559.31	54	2,183.24	1,435.79	52	2,065.73	1,303.31	59
Depreciation	132.39	116.56	14	385.63	334.8	15	453.08	388.61	17
PBT	730.28	442.75	65	1797.61	1100.99	63	1612.65	914.7	76
Taxation	224.74	118.5	90	514.34	284.19	81	414.4	-1.2	PL
PAT	505.54	324.25	56	1283.27	816.8	57	1198.25	915.9	31
EPS (Rs)*	#	#		#	#		40.4	30.9
Notes
* EPS is on current equity of Rs 296.42 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

 

  

SRF : Consolidated Segment Results
	% of (Total)	2112 (03)	2012 (03)	Var.(%)	% of (Total)	2112 (09)	2012 (09)	Var.(%)	% of (Total)	2103 (12)	2003 (12)	Var.(%)
Sales
Technical Textile Business	16	537.77	366.97	47	18	1,588.58	839.52	89	15	1,240.11	1,357.55	-9
Chemicals and Polymers Business	43	1,428.30	905.9	58	41	3,668.31	2,492.29	47	43	3,644.89	2,974.96	23
Packing Film Business	38	1,275.99	801.97	59	38	3,389.01	2,312.20	47	39	3,291.72	2,603.99	26
Others	3	107.05	73.8	45	3	246.98	154.36	60	3	232.02	278.34	-17
Total Reported Sales	100	3,349.11	2,148.64	56	100	8,892.88	5,798.37	53	100	8,408.74	7,214.84	17
Less: Inter segment revenues		3.24	2.23	45		8.64	5.98	44		8.7	5.43	60
Net Sales		3,345.87	2,146.41	56		8,884.24	5,792.39	53		8,400.04	7,209.41	17
PBIT
Technical Textile Business	14	113.51	67.93	67	19	380.01	104.11	265	10	176.9	151.49	17
Chemicals and Polymers Business	53	419.24	189.94	121	46	892.6	452.94	97	40	728.14	511.48	42
Packing Film Business	32	254.21	212.4	20	34	670.5	679.29	-1	49	897.87	555.62	62
Others	1	8.57	8.26	4	1	16.26	16.82	-3	1	25.59	31.77	-19
Total PBIT	100	795.53	478.53	66	100	1,959.37	1,253.16	56	100	1,828.50	1,250.36	46
Less : Interest		29.41	28.49	3		80.24	107.8	-26		133.95	200.68	-33
Add: Other un-allcoable		-35.84	-9.14	-292		-81.52	-46.51	-75		-84.63	20.87	PL
PBT		730.28	440.9	66		1,797.61	1,098.85	64		1,609.92	1,070.55	50

 

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