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SRF surges 12% after posting strong numbers in June quarter

The company reported a healthy 41 per cent growth in consolidated net profit at Rs 189 crore in June quarter on strong performance by packaging film business.

SI Reporter  |  Mumbai 

SRF

shares surged 12 per cent to Rs 2,888 in Thursday's early morning deal on the BSE after the company reported a healthy 41 per cent growth in consolidated net profit at Rs 189 crore in the June quarter (Q1FY20) on strong performance by packaging film business. It had a profit of Rs 134 crore in the year-ago quarter.

The company's consolidated revenue during the quarter grew by 9 per cent from Rs 1,676 crore to Rs 1,828 crore in Q1FY20 when compared with corresponding period last year. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved 400bps at 21.2 per cent from 17.2 per cent in previous year quarter.

The operating profit of the packaging films business increased by 50 per cent from Rs 97 crore to Rs 146 crore in Q1FY20 over previous year quarter owing to better margins in the Bi-axially Oriented Polyethylene Terephthalate (BOPET) segment and increased sales from the value-added product portfolio.

Meanwhile, the board approved the setting up of an integrated Polytetrafluoroethylene (PTFE) plant along with R22 plant as feedstock, at an aggregate cost of Rs 424 crore. The mode of financing is through mix of debt and internal accruals.

is the market leader in most of its businesses. Due to extensive experience in handling fluorine, it is the sole producer of some key refrigerants in India. The market position in the packaging films business is supported by large capacity and high volume of value-added products.

The company is likely to sustain its healthy market share, given its leadership position, established track record, and large R&D capability leading to technical expertise, rating agency CRISIL said.

At 10:31 am, was trading 11 per cent higher at Rs 2,869 on the BSE, as compared to 0.31 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than 3-fold with a combined 1.08 million shares changing hands on the BSE and NSE so far.

First Published: Tue, August 06 2019. 10:33 IST
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