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SRF to build Rs 140-cr specialty chemicals plant

For 2013-14, the company net sales up by 6%, but PAT down by 36%

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Last Updated : May 12 2014 | 4:59 PM IST

The Board of Directors of SRF Ltd, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, has approved a proposal to set up a second multi-purpose plant for creating additional manufacturing capacity for specialty chemicals at SRF’s chemical complex in Dahej, Gujarat, at an aggregated cost of Rs 140 crore. When completed, the project will enable the company to cater to the increasing demand for specialty chemicals.
 
As part of its ongoing capex programme, SRF commissioned 10 projects worth more than Rs 650 crore during the year. SRF commissioned a specialty chemicals plant, built with an investment of Rs 52 crore, on April 30, 2014, at its chemical complex in Dahej. Similarly, in March 2014, SRF Ltd commissioned five projects - captive power plant (15 MW), HFC-134a/125 plant (12500 TPA), AHF plant (20000 TPA), specialty chemical plant (800 TPA), and specialty chemicals plant for agrochemical industry (500 TPA) – at Dahej.
 
Meanwhile, SRF Ltd has reported an increase of 8% in its net sales at Rs 884 crore for the last quarter of 2013-14 over the corresponding period last year. Impacted by the discontinuation of income from Certified Emission Reductions (CERs), the company’s net profit after tax (PAT) declined from Rs 72 crore reported a year ago to Rs 53 crore, a reduction of 26%, during January-March 2014.
 
For the fiscal ended March 31, 2014, the company reported 6% growth in its consolidated net sales at Rs 3993 crore as against Rs 3769 crore recorded previous year. The consolidated net profit after tax (PAT) of SRF declined by 36%, from Rs 253 crore recorded last year to Rs 162 crore after absorbing higher depreciation and interest costs from two new plants commissioned overseas and the absence of income from sale of CERs following changes in European Union - Emission Trading Scheme (EUETS).
 
Ashish Bharat Ram, Managing Director, SRF, said, “The company has performed well in a difficult economic scenario. Major investments have been commissioned recently which should provide positive impetus going forward.” 

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First Published: May 12 2014 | 4:58 PM IST

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