SRF surges 12% from day's low; stock hits new high of Rs 2,621

The company reported 54 per cent year on year jumped in consolidated net profit at Rs 191 crore in March quarter, on the back of healthy revenue growth.

SRF shares hit a new high of Rs 2,621, up 6 per cent, in intra-day trade on the National Stock Exchange (NSE), after the company reported 54 per cent year-on-year (YoY) jumped in consolidated net profit at Rs 191 crore in March quarter, on the back of healthy revenue growth. The consolidated revenue grew 29 per cent at Rs 2,072 crore on YoY basis.

The stock of has bounced back 12 per cent from its intra-day low of Rs 2,335 on the NSE. It surpassed its previous high of Rs 2,614 hit on May 2, 2019.

Analysts, on an average, had expected a profit of Rs 151 crore and revenue of Rs 2,008 crore for the quarter.

The company’s EBITDA (earnings before interest, tax, depreciation and amortization) margin improved to 19.6 per cent, up 185 bps on YoY basis.

The management said fluorochemicals business continued to perform in line with expectations mainly on account of higher sales of Chloromethanes. The specialty chemicals business witnessed robust demand on the back of agro reversal in the fourth quarter, leading to higher sales, it said.

Meanwhile, in a separate regulatory filing, SRF said it has entered into a definitive agreement to sell its engineering plastics business to DSM, the life sciences and materials sciences Company in an all-cash transaction, amounting to Rs 320 crore.

It expects the transaction to provide cash and liquidity to strengthen the company’s balance sheet further. It will also allow company to optimize and focus efforts and resources on developing more-and-more complex technologies within the chemicals business space.

At 03:00 pm, SRF was trading 4 per cent higher at Rs 2,565 on the NSE, as compared to 0.43 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than eight-fold with a combined 2.74 million shares changed hands on the NSE and BSE so far.