SRF records 22 percent jump in consolidated PAT at Rs.113 Crore

Driven by stabilised performance of the recently commissioned overseas units and an overall improvement in operational efficiencies across all businesses, SRF, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, at a consolidated level recorded a 22 percent increase in net profit after tax (PAT) from Rs. 93 crore to Rs. 113 crore during the first quarter ended June 30, 2015 over the corresponding period last year (CPLY).

After eliminating last year's one-time other income of Rs. 26 crore, the increase in PAT for the first quarter of the current financial year amounts to 69 percent over CPLY. Net sales of SRF consolidated during the first quarter of 2015-16 increased by five percent to Rs. 1207 crore as against Rs. 1147 crore recorded during CPLY.

The standalone PAT of the company grew by 6% from Rs. 99 crore to Rs. 106 crore during the same period. As explained above, after adjustment for the one-time other income of CPLY, the standalone PAT of the company during April-June 2015 increased by 44 percent over the same quarter last year. The standalone figure for net sales increased marginally from Rs. 936 crore to Rs. 952 crore during the period. The financial results of SRF were approved by the SRF Board in a recent meeting.

The packaging films business reported a significant increase in its operating profit from Rs. 14 crore to Rs. 60 crore on increased segment revenue from Rs. 301 crore to Rs. 353 crore during the first quarter of 2015-16.

The chemicals and polymers business reported a 19 percent increase in its segment revenue from Rs. 321 crore to Rs. 380 crore during the first three months of 2015-16 over CPLY.

Operating profit of the chemicals and polymers business, which includes a one-time depreciation increase of Rs. 4.30 crore due to change in estimated life of certain assets, also grew by 22 percent from Rs. 77 crore to Rs. 94 crore during the period.

The technical textiles business recorded a decline of eight percent in its segment revenue from Rs. 537 crore to Rs. 493 crore during the period, its operating profit increased by 33 percent from Rs. 42 crore to Rs. 56 crore.

The board also approved three separate capex proposals aggregating Rs. 394 crore - one for setting up a new greenfield packaging film line in the domestic tariff area at a new location near the company's Indore plant in SEZ at an estimated cost of Rs. 356 crore; two for setting up a R-134a pharma grade manufacturing and filling facility meeting cGMP requirements at the existing chemical complex at Dahej at an estimated cost of Rs. 26 crore; and three for converting the HFC 134a plant at Bhiwadi into a swing plant at an estimated cost of Rs. 12 crore to produce both HFC 134a and HFC 32.

The SRF Board also approved an interim dividend at the rate of 50% per cent amounting to Rs. 5 per share.

Established in 1970, SRF as a group has today grown into a global entity with operations in three countries. Apart from technical textiles business, in which it enjoys a global leadership position, SRF is a domestic leader in refrigerants, engineering plastics and industrial yarns as well.

The company also enjoys a significant presence among the key domestic manufacturers of polyester films and specialty chemicals.