SRF climbs after board OKs capex plan

SRF rose 2.48% to Rs 3838 after the company said its board approved the project proposal for setting up a range of dedicated plants to produce specialty chemicals at an estimated cost of Rs 238 crore.

The project proposes a capacity addition of 2150 MTPA (million tonnes per annum) within a period of 10 months, i.e., by the end of November 2020. The project is being financed by a mix of debt and internal accruals, SRF announced after market hours on Tuesday.

SRF's consolidated net profit soared 107% to Rs 342.99 crore in Q3 December 2019 (Q3 FY20) as against Rs 165.71 crore reported in Q3 December 2018 (Q3 FY19), primarily on account of lower tax expenses. Net sales rose 3.1% year-on-year (YoY) to Rs 1,807.45 crore in Q3 FY20.

 

Consolidated profit before tax (PBT) jumped 30.4% to Rs 256.58 crore in Q3 FY20 as compared to Rs 196.73 crore posted in Q3 FY19. Consolidated Earnings before Interest and Tax (EBIT) surged 39% to Rs 337 crore in Q3 FY20 as compared to Rs 243 crore in Q3 FY19. The result was announced after trading hours on Monday, 3 February 2020.

SRF is engaged in manufacturing of chemicals and polymers, technical textiles and packaging films. As of 31 December 2019, the company has applied for 190 patents, with 8 patents applied during this quarter. It has been granted sixty patents globally till date.

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