SRF, domestic leader in refrigerants, engineering plastics and industrial yarns on Wednesday announced its consolidated financial results for the first quarter ended June 30, 2021.
The consolidated revenue of the company grew 75% from Rs 15.45 billion to Rs 26.99 billion in Q1FY22 when compared with Corresponding Period Last Year (CPLY).
The company's Profit after Tax (PAT) increased 123% from Rs 1.77 billion to Rs 3.95 billion in Q1FY22 when compared with CPLY.
The company's Earnings before Interest and Tax (EBIT) increased 102% from Rs 2.95 billion to Rs 5.95 billion in Q1FY22 when compared with CPLY.
The board of directors have approved an interim dividend at the rate of 120%, amounting to Rs 12 per share.
Commenting on the results, Managing Director, Ashish Bharat Ram said, "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 significant increase in global freight rates remain a risk for us."
The Chemicals Business reported an increase of 58% in its segment revenue from Rs 7.05 billion to Rs 11.14 billion during Q1FY22 over CPLY. The operating profit of the Chemicals Business increased 151% from Rs 890 million to Rs 2,220 million in Q1FY22 over CPLY.
During the quarter, the Specialty Chemicals Business performed well owing to higher sales from exports and domestic markets. The Fluorochemicals Business witnessed higher sales volumes in the refrigerants and the blends segments with better sales realizations, especially from the export markets. In addition, healthy contribution from the chloromethanes segment augmented the overall results. The second wave of COVID-19 induced lockdowns resulted in disruption of supply chains, leading to an overall increase in raw material prices and export freight across geographies.
The Packaging Films Business reported an increase of 54% in its segment revenue from Rs 6.77 billion to Rs 10.41 billion during Q1FY22 when compared with CPLY. The operating profit of the Packaging Films Business increased 7% from Rs 2.21 billion to Rs 2.37 billion in Q1FY22 over CPLY.
During the quarter, while the domestic demand for BOPET films remained muted, we witnessed healthy demand for BOPP films. New capacities that came on-stream in the past six months in Hungary and Thailand witnessed significantly better traction and enhanced sales of Value-Added Products (VAPs) also contributed to the overall performance.
The Technical Textiles Business reported an increase of 251% in its segment revenue from Rs 1.40 billion to Rs 4.93 billion during Q1FY22 over CPLY. The operating profit of the Technical Textiles Business increased 1,054% from Rs (140) million to Rs 1,340 million in Q1FY22 over CPLY. Re-structuring of margin profile with long-term customers has contributed to the overall performance of the Technical Textiles Business. In addition, higher sales volumes from the Nylon Tyre Cord Fabrics, Belting Fabrics and Polyester Industrial Yarn segments augured well for the business.
The Other Businesses reported an increase of 126% in its segment revenue from Rs 240 million to Rs 540 million in Q1FY22 when compared with CPLY.
The Board has approved a project for Integrated Expansion of Fluorocarbon based Refrigerant Capacity at Dahej at a projected cost of Rs 5.50 billion 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 Rs 1.35 billion.
Shares of the company gained Rs 75.70 or 0.99%, to trade at Rs 7,737.55. The total volume of shares traded was 33,366 at the BSE (3.22 p.m, Wednesday).
