Gurugram, February 04, 2019: 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 third quarter and nine months ended December 31, 2018.
Consolidated Q3 Financials
The consolidated revenue of the company grew by 41% from ₹1,397 crore to ₹1,964 crore in Q3FY19 when compared with Corresponding Period Last Year (CPLY). The Company’s Earnings before Interest and Tax (EBIT) increased by 15% from ₹225 crore to ₹259 crore in Q3FY19 when compared with CPLY. The Company’s Profit after Tax (PAT) rose 26% from ₹131 crore to ₹166 crore in Q3FY19 when compared with CPLY.
Commenting on the results, Managing Director, Ashish Bharat Ram said, “In spite of inventory losses in the crude based businesses, we have performed reasonably well. The Specialty Chemicals Business is now showing signs of a revival which will be visible from the next quarter onwards.”
Interim Dividend
In today’s meeting, the Board also approved a second interim dividend at the rate of 60 percent amounting to ₹6 per share. Earlier on August 7, 2018, the board had approved the first interim dividend at the rate of ₹6 per share.
Consolidated Q3 Segment Results
The Technical Textiles Business reported an increase of 21% in its segment revenue from ₹452 crore to ₹548 crore during Q3FY19 over CPLY. The operating profit of the Technical Textiles Business increased by 7% from ₹76 crore to ₹82 crore in Q3FY19 over CPLY. The Business has performed well on account of increased sales from the value-added products portfolio and operational cost savings.
The Chemicals Business reported an increase of 46% in its segment revenue from ₹402 crore to ₹586 crore during Q3FY19 over CPLY. The operating profit of the Chemicals Business increased by 5% from ₹73 crore to ₹77 crore in Q3FY19 over CPLY. The Fluorochemicals Business continued to perform in line with expectations mainly on account of additional sales of Chloromethanes. Further, new opportunities have emerged in the Specialty Chemicals Business, which will result in better offtake.
The Packaging Films Business reported an increase of 63% in its segment revenue from ₹430 crore to ₹703 crore during Q3FY19 when compared with CPLY. The operating profit of the Packaging Films Business increased by 40% from ₹63 crore to ₹88 crore in Q3FY19 over CPLY owing to increased capacities.
The Other Businesses reported an increase of 13% in its segment revenue from ₹114 crore to ₹129 crore during Q3FY19 when compared with CPLY. The operating profit of the Others Business remained flat at ₹12 crore in Q3FY19 over CPLY.
Capex
The Board approved a project to debottleneck certain specialty chemical plants to further increase the production capacity at Dahej at an estimated cost of ₹140 crore.
The Board also approved a proposal to install additional spinning and textile capacity at the Technical Textiles Plants in Manali and Gwalior at an estimated cost of ₹80 crore, which will be incurred over a period of three years.
9M Financials
In the 9M FY19 period, the Company’s PAT increased by 33% from ₹338 crore to ₹451 crore over CPLY. SRF’s revenue increased by 41% from ₹3,977 crore2 to ₹5,621 crore over CPLY. The company’s EBIT increased 45% from ₹554 crore to ₹802 crore over CPLY.
Innovation and Intellectual Property
As of December 31, 2018, the company has applied for 155 patents, with nine patents applied during the quarter. Till date, the company has been granted twenty three patents globally.
Awards and Recognition
SRF has been conferred the Family Business of the Year (Large Companies) Award by India’s leading business newspaper, The Economic Times.
