Gurugram, November 09, 2017: SRF Limited, a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates today announced its consolidated financial results for the second quarter and half year ended September 30, 2017.
Consolidated Q2 Financials
The consolidated gross sales of the company grew by 12% from ₹1,144 crore to ₹1,286 crore in Q2FY18 when compared with Corresponding Period Last Year (CPLY)*. The Company’s Earnings before Interest and Tax (EBIT) and Profit after Tax (PAT) decreased to ₹159 crore and ₹103 crore respectively in Q2FY18.
Commenting on the results, Managing Director, Ashish Bharat Ram said “It has been a tough quarter for the Company. The Specialty Chemicals Business has remained under pressure but green shoots are clearly visible. We believe the worst is behind us and the growth momentum should return. The other business segments have performed reasonably well in a tough market scenario and overall we are optimistic that better days lie ahead.”
Consolidated Annual Segment Results
Technical Textiles Business reported a marginal decline of 1% in its segment revenue from ₹481 crore to ₹476 crore during Q2FY18 over CPLY*. The operating profit of the Technical Textiles Business decreased by 11% from ₹64 crore to ₹57 crore in Q2FY18.
Segment revenue of the Chemicals & Polymers Business increased by 4% from ₹386 crore to ₹401 crore during Q2FY18 over CPLY*. The operating profit of the Chemicals and Polymers Business decreased by 23% from ₹68 crore to ₹53 crore in Q2FY18, as sluggishness in the Agro industry continued.
The Packaging Films Business reported an increase of 18% in its segment revenue from ₹349 crore to ₹411 crore during Q2FY18 when compared with CPLY* with additional quantity from the BOPET line at DTA, Indore that began operations in Q4FY17. The operating profit of the Packaging Films Business decreased by 6% from ₹53 crore to ₹50 crore in Q2FY18, mainly on account of low BOPET margins continuing, when compared with CPLY.
Capex
The Board approved setting up of an integrated facility to produce HFCs and AHF at an estimated cost of ₹356 crore. This cost includes an earlier announcement made with respect to the acquisition of HFC 125 assets and technical know-how from a global HFC player. The overall project entails acquisition, setting-up and the conversion of capacities of HFC 125, 32, AHF and 134a, with an aim of doubling our existing capacities.
The Board also approved a capacity expansion and modernization of Belting Fabric operations at TTB, Viralimalai site at an approximate cost of ₹16.9 crore.
H1 Financials
In the first six months of FY18, the Company’s PAT decreased by 26% from ₹277 crore to ₹207 crore over CPLY. SRF’s revenue, however increased by 9% from ₹2,363 crore to ₹2,580 crore over CPLY. The Company’s EBIT decreased by 23% from ₹429 crore to ₹330 crore over CPLY.
Innovation and Intellectual Property
As of September 30, 2017, the company has applied for 122 patents, with ten patents applied during the quarter. Till date, the company has been granted nine patents.
Awards and Recognition
SRF Chemical Business sites in Bhiwadi and Dahej have been granted permission to use the Responsible Care Logo by the Indian Chemical Council.
SRF Ltd. was awarded the Eco-Corporate of the Year in the Manufacturing category at the 3rd YES BANK Natural Capital Awards on September 01, 2017.
