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SRF Q3 PAT jumps 56% YoY to Rs Rs 506 cr

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Last Updated : Jan 27 2022 | 9:31 AM IST

The company's consolidated net profit rose 55.68% to Rs 505.54 crore on 55.64% rise in net sales to Rs 3314.14 crore in Q3 December 2021 over Q3 December 2020.

On a consolidated basis, profit before tax jumped 65% year-on-year to Rs 730.28 crore in Q3 December 2021.

The company's Earnings before Interest and Tax (EBIT) increased 66% to Rs 796 crore in Q3FY22 when compared with the same period last year.

Total expenses jumped 52.22% to Rs 2626.26 crore with cost of materials consumed rising 55.39% to Rs 1739.73 crore during the period under review. Power and fuel expense rose 54.24% to Rs 300.18 during the period under review.

The board of SRF has declared interim dividend of Rs 4.75 per share. The record date is on 4 February 2022.

Commenting on the results, managing director, Ashish Bharat Ram said, "Its been an outstanding quarter for the company. Except for the Technical Textiles segment, which was impacted by soft market conditions, every other segment performed exceedingly well. We remain cautiously optimistic of our performance going forward."

The chemicals business reported an increase of 58% in its segment revenue to Rs 1,428 crore during Q3FY22 over corresponding period last year (CPLY). The operating profit of the Chemicals Business increased 121% to Rs 419 crore in Q3FY22 over CPLY.

During the quarter, the fluorochemicals business performed exceedingly well on account of higher prices of certain key refrigerant products in critical international markets and increased export volumes in HFC blends. In addition, healthy contribution from the chloromethanes segment augmented the overall results.

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With an expanded product portfolio, the specialty chemicals business had a healthy quarter. This was largely on account of strong demand from the overseas markets, higher capacity utilization of dedicated/multipurpose facilities and significant cost-savings across all product streams. Several new plants commissioned during the year contributed to the overall performance.

The packaging films business reported an increase of 59% in its segment revenue to Rs 1,276 crore during Q3FY22 when compared with CPLY. The operating profit of the packaging films business increased 20% to Rs 254 crore in Q3FY22 over CPLY.

The technical textiles business reported an increase of 47% in its segment revenue to Rs 538 crore during Q3FY22 over CPLY. The operating profit of the technical textiles business increased 67% to Rs 114 crore in Q3FY22 over CPLY.

Meanwhile, SRF's board has approved a project to set up an Aluminium Foil manufacturing facility at a new site in Jaitapur, Indore, India at a projected cost of Rs 425 crore to meet the growing demand for Aluminium Foil, which is mainly driven by packaging requirement for food products in the domestic and exports market. The project is expected to be completed in twenty months.

The board has approved the setting up of a new pharma intermediates plant at its chemical complex in Dahej, India at an estimated cost of Rs 190 crore to further augment its pharma manufacturing capability and become future ready to tap into new and upcoming business opportunities in the pharma vertical. The board has also approved the setting up of a dedicated facility to produce 300 MT per year of a key agrochemical product at its chemical complex in Dahej, India at an estimated cost of Rs 61 crore.

As of 31 December 2021, the company has applied for 351 patents, with nineteen patents applied during the quarter. Till date, the company has been granted one hundred and six patents globally.

SRF is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. he company's diversified business portfolio covers fluorochemicals, specialty chemicals, packaging films, technical textiles, coated and laminated fabrics.

Shares of SRF were down 2.64% at Rs 2402.65 on the BSE.

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First Published: Jan 27 2022 | 9:18 AM IST

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