SRF declined 2.79% to Rs 3,685.45 after consolidated net profit slipped 2.7% to Rs 185.75 crore on 4.2% fall in net sales to Rs 1,820.28 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax dropped 16.4% to Rs 211.23 crore in Q4 March 2020 as against Rs 252.80 crore in Q4 March 2019. Current tax expenses fell 58.8% to Rs 25.48 crore in Q4 March 2020 as compared to Rs 61.91 crore in Q4 March 2019. The Q4 result was declared post market hours yesterday, 4 June 2020.
The nationwide lockdown impacted the business activities of the company. However, the company believes the COV1D-19 outbreak is not likely to have any material impact on its financial statements, liquidity or ability to service its debt or other obligations, however, the overall economic environment being uncertain due to COVID-19, may affect the underlying assumptions and estimates in future, which may differ from those considered as at the date of approval of these financial statements.
Commenting on the Q4 performance, Ashish Bharat Ram, the managing director (MD) of SRF, said that: "The demand for specialty chemicals has been robust and the business has contributed as per expectations. The packaging films business has also done well and continues to increase its footprint across the globe. All the business segments were adversely affected due to the lockdown announced by the Government of India in March 2020."
The chemicals business reported an increaseof 5% in its segment revenue from Rs 840 crore to Rs 882 crore during Q4FY20 over corresponding period last year (CPLY). The packaging films business reported a decrease of 3% in its segment revenue from Rs 623 crore to Rs 601 croreduring Q4FY20 when compared with CPLY largely due to a decrease in prices of key raw materials. The technical textiles business reported a decrease of 22% in its segment revenue from Rs 404 crore to Rs 317 crore during Q4FY20 over CPLY. The other businesses reported a decrease of 19% in its segment revenue from Rs 71 crore to Rs 58 crore inQ4FY20 when compared with CPLY.
Also Read
As of 31 March 2020, SRF has applied for 205 patents, with 15 patents applied during the quarter. Till date, it has been granted 70 patents globally.
SRF, a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
