Gurugram, May 05, 2021: 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 fourth quarter and year ended March 31, 2021. The company’s audited results were approved by the Board of Directors in a meeting held today via video conferencing.
Consolidated Q4FY21 Financials
The consolidated revenue of the company grew 40% from ₹1,858 crore to ₹2,608 crore in Q4FY21 when compared with Corresponding Period Last Year (CPLY). The company’s Earnings before Interest and Tax (EBIT) increased 73% from ₹332 crore to ₹575 crore in Q4FY21 when compared with CPLY. The company’s Profit after Tax (PAT) increased 96% from ₹194 crore to ₹381 crore in Q4FY21 when compared with CPLY.
Commenting on the results, Managing Director, Ashish Bharat Ram said, “The company has had an excellent quarter all around, with the Specialty Chemicals and the Packaging Films Businesses performing exceedingly well. While I remain reasonably optimistic of the year ahead, we are seeing some disruptions at our workplace emanating from the second wave of the COVID-19 outbreak. Looking after our communities and employees is of paramount importance to us at the moment.”
Consolidated Q4FY21 Segment Results
The Chemicals Business reported an increase of 31% in its segment revenue from ₹882 crore to ₹1,153 crore during Q4FY21 over CPLY. The operating profit of the Chemicals Business increased 73% from ₹159 crore to ₹275 crore in Q4FY21 over CPLY. During the quarter, the Specialty Chemicals Business performed exceptionally well owing to a strong demand from the overseas markets and enhanced volumes of certain key products supplied to our major customers in Europe. The Fluorochemicals Business witnessed higher sales volumes in the refrigerants segment from both domestic and export market. In addition, healthy contribution from the chloromethanes segment augmented the overall results. However, the Fluorochemicals Business is witnessing an impact of the micro lockdowns and certain restrictions imposed by the local authorities as a part of COVID-19 response measures which, though currently not significant, may have an adverse impact on business performance in the short term.
The Packaging Films Business reported an increase of 63% in its segment revenue from ₹601 crore to ₹980 crore during Q4FY21 when compared with CPLY. The operating profit of the Packaging Films Business increased 67% from ₹131 crore to ₹219 crore in Q4FY21 over CPLY. Volume growth, better cost efficiencies, and higher customer-centricity have resulted in the Business establishing itself as a global major in the Packaging Films industry. Additionally, new capacities in Hungary and Thailand and enhanced sales of Value-Added Products (VAPs) have contributed significantly to the overall performance.
The Technical Textiles Business reported an increase of 26% in its segment revenue from ₹317 crore to ₹401 crore during Q4FY21 over CPLY. The operating profit of the Technical Textiles Business increased 96% from ₹37 crore to ₹73 crore in Q4FY21 over CPLY. Fast recovery in the tyre industry and a healthy contribution from the Belting Fabrics segment augured well for the Technical Textiles Business.
The Other Businesses reported an increase of 35% in its segment revenue from ₹58 crore to ₹78 crore in Q4FY21 when compared with CPLY. The operating profit of the Other Businesses increased 66% from ₹5 crore to ₹9 crore in Q4FY21 over CPLY. Both the Coated and Laminated Fabrics Business performed very well in a difficult external environment.
Consolidated Annual Results
In FY21, SRF’s revenue increased 17% from ₹7,209 crore to ₹8,400 crore over CPLY. The Company’s EBIT increased 46% from ₹1,250 crore to ₹1,828 crore over CPLY. The Company’s PAT increased 31% from ₹916 crore to ₹1,198 crore over CPLY.
Capex
Chemicals Business
The Board has approved the setting up of the fourth Multi-Purpose Plant (MPP) at Dahej, India at an approximate cost of ₹375 crore. A need was being felt to augment the existing MPPs, to be able to capitalize on emerging business opportunities to ensure robust pipeline of new products in the future.
Innovation and Intellectual Property
As of March 31, 2021, the company has applied for 309 patents, with eleven patents applied during the quarter. Till date, the company has been granted ninety-three patents globally.
Awards and Recognition
SRF’s Packaging Films Business facility in South Africa has been bestowed the 5 Star rating for Occupational Health and Safety from the British Safety Council.
SRF Limited was awarded the ‘CSR- Best STEM Education Project – Through Partnership (Large Impact)’ at the 9th INDIA CSR Awards in January 2021.
