 "SRF hits record high on strong Q1 earnings")
SRF has rallied nearly 9% to Rs 1,670, also its record high on the National Stock Exchange (NSE) in intra-day trade, after the company reported 27% year-on-year (YoY) increase in consolidated net profit at Rs 144 crore for the quarter ended June 30, 2016 (Q1FY17), on back of strong operational performance.
The company, a chemical based multi-business entity manufacturing industrial intermediates, had profit of Rs 113 crore in the same quarter year ago.
SRF attributed the surge in profitability to robust demand, operational efficiency with renewed focus on cost improvement and market penetration especially in the international market.
Net sales of the company during the first quarter of 2016-17, however, declined only marginally to Rs 1,195 crore from Rs 1,205 crore, mainly due to the consistent subdued commodity prices, it added.
The Ebitda (earnings before interest, taxes, depreciation and amortisation) margin improved 184 basis points to 23.79% from 21.95% last year.
Commenting on the financial performance of the company, Mr. Ashish Bharat Ram, Managing Director, SRF, said “All our businesses performed exceptionally well. However, the global economy remains fragile and hence the outlook has an element of uncertainty to it.”
The board of directors of the company approved an interim dividend at the rate of 60% per cent amounting to Rs 6 per share.
The company, a chemical based multi-business entity manufacturing industrial intermediates, had profit of Rs 113 crore in the same quarter year ago.
SRF attributed the surge in profitability to robust demand, operational efficiency with renewed focus on cost improvement and market penetration especially in the international market.
Net sales of the company during the first quarter of 2016-17, however, declined only marginally to Rs 1,195 crore from Rs 1,205 crore, mainly due to the consistent subdued commodity prices, it added.
The Ebitda (earnings before interest, taxes, depreciation and amortisation) margin improved 184 basis points to 23.79% from 21.95% last year.
Commenting on the financial performance of the company, Mr. Ashish Bharat Ram, Managing Director, SRF, said “All our businesses performed exceptionally well. However, the global economy remains fragile and hence the outlook has an element of uncertainty to it.”
The board of directors of the company approved an interim dividend at the rate of 60% per cent amounting to Rs 6 per share.
At 09:49 am, the stock was up 8% at Rs 1,666 on the NSE, as compared to 0.11% decline in the Nifty 50 index. The trading volumes on the counter jumped more than three-fold with a combined 630,000 shares changed hands on the NSE and BSE..