SRF gains after strong Q4 numbers

SRF rose 3.14% to Rs 1,456.75 at 10:39 IST on BSE after consolidated net profit rose 80.06% to Rs 108.79 crore on 2.60% rise in net sales to Rs 1093.07 crore in Q4 March 2016 over Q4 March 2015.

The result was announced after market hours yesterday, 10 May 2016.

Meanwhile, the BSE Sensex was down 87.17 points, or 0.34%, to 25,685.36.

On BSE, so far 38,000 shares were traded in the counter, compared with an average volume of 15,036 shares in the past one quarter. The stock hit a high of Rs 1,461.45 and a low of Rs 1,409.10 so far during the day. The stock hit a 52-week high of Rs 1,495.55 on 5 August 2015. The stock hit a 52-week low of Rs 899.05 on 13 May 2015. The stock had outperformed the market over the past one month till 10 May 2016, rising 9.84% compared with 4.45% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 22.42% as against Sensex's 8.48% rise.

The mid-cap company has an equity capital of Rs 57.42 crore. Face value per share is Rs 10.

SRF's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 43% to Rs 234 crore in Q4 March 2016 over Q4 March 2015.

On a consolidated basis, SRF's net profit rose 39.67% to Rs 422.94 crore on 0.86% rise in net sales to Rs 4530.82 crore in the year ended March 2016 over the year ended March 2015. Consolidated EBITDA rose 26% to Rs 791 crore in the year ended March 2016 over the year ended March 2015.

The consolidated net debt to equity ratio for SRF improved from 0.99 as on 31 March 2015 to 0.74 times as on 31 March 2016.

The board approved a capital expenditure (capex) proposal for setting up a 'BOPP film line and a metallizer' in the existing domestic tariff area (DTA) campus at Indore at a total investment of around Rs 269 crore. With a maiden domestic entry into the space of BOPP films, SRF aims to emerge as a one stop shop for its customers mainly in India. The proposed project will be the second BOPP unit for SRF, the first one was set up at Durban in South Africa in 2012. The project is scheduled to be commissioned in the last quarter of 2017-2018.

SRF is a diversified firm. It is into technical textiles, refrigerants, engineering plastics, industrial yarn, polyester films and specialty chemicals.

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