SRF spurts after good Q1 earnings

SRF rose 7.53% to Rs 1653.95 at 10:20 IST on BSE after consolidated net profit rose 27.13% to Rs 144.19 crore on 0.10% decline in total income to Rs 1224.73 crore in Q1 June 2016 over Q1 June 2015.

The result was announced after market hours yesterday, 8 August 2016.

Meanwhile, the BSE Sensex was down 46.89 points, or 0.17%, to 28,135.68.

On BSE, so far 1.13 lakh shares were traded in the counter, compared with average daily volume of 21,857 shares in the past one quarter. The stock hit a high of Rs 1688 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1554.20 so far during the day. The stock hit a 52-week low of Rs 1,019 on 25 August 2015. The stock had outperformed the market over the past 30 days till 8 August 2016, rising 17.66% compared with 3.89% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 8.90% as against Sensex's 9.35% rise.

The mid-cap chemical based multi-business entity manufacturing industrial intermediates has equity capital of Rs 57.42 crore. Face value per share is Rs 10.

SRF said consolidated net sales declined 0.86% to Rs 1195.08 crore in Q1 June 2016 over Q1 June 2015, mainly due to the consistent subdued commodity prices. The company said that the surge in profitability can be attributed to robust demand, operational efficiency with renewed focus on cost improvement and market penetration especially in the international market.

Reflecting on the financial performance of the company, SRF's managing director, Ashish Bharat Ram, said that the company had an excellent start to the year. All the company's businesses performed exceptionally well. However, the global economy remains fragile and hence the outlook has an element of uncertainty to it. The company continues to invest regularly as per its strategic intent.

Meanwhile in a separate announcement after market hours yesterday, 8 August 2016, the company said that its board approved setting up third multipurpose plant at SRF's chemical complex in Dahej, Gujarat at an estimated cost of Rs 180 crore. The board also approved setting up Chloromethanes plant at SRF's chemical complex in Dahej, Gujarat at an estimated cost of Rs 165 crore.

SRF is a multi-business global entity with operations in 3 countries. The company makes refrigerants, technical textiles, packaging films and specialty chemicals.

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