SRF Ltd posts 22 percent rise in Q1 net profit

SRF Ltd on Thursday posted an increase of 22 percent in its net profit at Rs.113 crore for the first quarter of 2015-16 as against Rs.93 crore in the year-ago period.

After eliminating last fiscal year's one-time other income of Rs.26 crore, the increase in the net profit for the first quarter of the current fiscal sums up to 69 percent over the corresponding period last year.

The company's net consolidated sales during the quarter increased by 5 percent to Rs.1,207 crore as against Rs.1,147 crore recorded in the same period in 2014.

Its standalone net profit grew by 6 percent from Rs.99 crore to Rs.106 crore during the same period.

The standalone figure for net sales, however, increased marginally from Rs.936 crore to Rs.952 crore during the period.

Its packaging films business vertical 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 while the chemicals and polymers segment reported 19 percent increase in its segment revenue from Rs.321 crore to Rs.380 crore.

The technical textiles business, however, recorded a decline of 8 percent in its segment revenue from Rs.537 crore to Rs.493 crore during the period while its operating profit increased by 33 percent from Rs.42 crore to Rs.56 crore.

"Given the sluggish economic environment, the company has performed better than our expectations. We will continue to pursue our strategy of enhancing our technological capabilities in all businesses and improving profitability through our internal efficiencies and exploring new opportunities in our chemicals business," managing director, Ashish Bharat Ram said in a statement.