SRF shares jump nearly 10% post Q1 earnings

Shares of SRF Ltd, manufacturer of technical textiles, chemicals and polymers, today rose sharply by nearly 10 per cent after the company reported 27.12 per cent increase in consolidated net profit for the first quarter ended June 30, 2016.

The stock surged 9.74 per cent to Rs 1,688 - its 52-week high - on BSE.

On NSE, it jumped 9.72 per cent to touch its one-year peak of Rs 1,688.70.

SRF yesterday reported 27.12 per cent increase in consolidated net profit to Rs 144.19 crore for the first quarter ended June 30, 2016.

The company had posted a net profit of Rs 113.42 crore in April-June quarter of the previous fiscal.

However, the net sales of the company were down 0.86 per cent to Rs 1,195.08 crore during the quarter under review as against Rs 1,205.45 crore in the year-ago period, SRF had said in a BSE filing.

In a separate filing, the company said its board has approved setting up of Chloromethanes Plant at Dahej, Gujarat at an estimated cost of Rs 165 crore.

It would be funded through a "mix of debt and internal accruals," SRF added.

SRF's board has also declared an interim dividend of 60 per cent, which is Rs 6 per share on the paid-up equity share capital of the company.