SRF tumbles on muted Q3 earnings

SRF fell 5.42% to Rs 934.25 at 11:50 IST on BSE after net profit rose 0.78% to Rs 72.62 crore on 1.25% rise in net sales to Rs 870.22 crore in Q3 December 2014 over Q3 December 2013.

The result was announced after trading hours yesterday, 10 February 2015.

Meanwhile, the BSE Sensex was up 125.66 points, or 0.44%, to 28,481.28.

On BSE, so far 37,000 shares were traded in the counter, compared with an average volume of 72,774 shares in the past one quarter.

The stock hit a high of Rs 970 and a low of Rs 907.30 so far during the day. The stock hit a record high of Rs 1,024.30 on 4 February 2015. The stock hit a 52-week low of Rs 199.65 on 11 February 2014.

The stock had outperformed the market over the past one month till 10 February 2015, rising 15.39% compared with 3.27% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 21.32% as against Sensex's 1.73% rise.

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

SRF said net sales increased marginally in Q3 December 2014 in spite of reduction in commodity prices.

The company's managing director stated that the operations were as per expectations. While some adverse impact of the sharp fall in the commodity prices was felt in the current quarter, a residual impact will be experienced in the next quarter. The company continues its journey on the stated strategic path by making focused investments, the statement added.

Meanwhile, SRF said that its board approved capital expenditure (capex) proposals worth Rs 25 crore (approximately) for enhancing the research and development (R&D) capability of the chemical business for faster turnaround of customer requests. In addition, a capex of Rs 66 crore (approximately) for modernization of technical textile plant at Gwalior was also approved.

SRF is a global entity with operations in three countries. Apart from technical textiles business, SRF is a domestic leader in refrigerants, engineering plastics and industrial yarns. The company also enjoys a significant presence among the key domestic manufacturers of polyester films and fluorospecialities.

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