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SRF to spent Rs 33 crore in augmenting capabilities

The company has reported 19% decline in PAT in Q3 2013-14 due to discontinuation of Certified Emission Reductions (CERs) sale

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Last Updated : Feb 12 2014 | 5:09 PM IST

The Board of Directors of SRF Ltd, a manufacturer of chemical based industrial intermediates, has approved capex of Rs 33 crore for expanding its capabilities in Dahej (Gujarat) and Gwalior, Madhya Pradesh. The company will spend about Rs 11 crores for augmenting production facility for specialty chemicals at SRF's Chemical Complex in Dahej. Similarly, approximately Rs 22 crores will be invested in augmenting quality of power for Gwalior unit of Technical Textile Business.
 
Meanwhile, SRF has reported a 19% decline in net profit after tax (PAT) at Rs 72 crore during the third quarter of 2013-14. The third quarter profit declined mainly because the company’s revenue during the corresponding period last year (CPLY) included income from sale of Certified Emission Reductions (CERs), which stands discontinued now in view of changes in European Union - Emission Trading Scheme (EU-ETS). The profit for third quarter of 2013-14 also included a forex gain of Rs 6.39 crore during the quarter. SRF’s revenue was down by 3% from Rs 889 crore to Rs 862 crore during the same period year-on-year.
 
Ashish Bharat Ram, Managing Director, SRF Ltd, commented: “Post the CDM era, the company has performed exceptionally well in a weak economic environment. The next few months are extremely important for the company with new plants getting commissioned at Dahej.”

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First Published: Feb 12 2014 | 5:08 PM IST

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