SRF Limited, a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates today announced its consolidated financial results for the third quarter and nine months ended December 31, 2020. The company’s un-audited results were approved by the Board of Directors in a meeting held today via video conferencing.
The consolidated revenue of the company grew by 16% from Rs1,850cr to Rs2,146cr in Q3FY21 when compared with Corresponding Period Last Year (CPLY). The company’s Earnings before Interest and Tax (EBIT) increased by 42% from Rs337cr to Rs479cr in Q3FY21 when compared with CPLY.
The company’s Profit after Tax (PAT) decreased by 6% from Rs345cr to Rs324cr in Q3FY21 when compared with CPLY. Net of one-time tax adjustments in CPLY, PAT increased by 46% from Rs221cr to Rs324cr. Commenting on the results, Managing Director, Ashish Bharat Ram said, “It has been an excellent quarter for the company. We have seen all business segments return to normal operations. I remain cautiously optimistic going forward.”
In today’s meeting, the board also approved a second interim dividend at the rate of 190 percent amounting to Rs19 per share. Earlier on July 30, 2020, the board had approved the first interim dividend at the rate of Rs5 per share.
The Chemicals Business reported an increase of 12% in its segment revenue from Rs812cr to Rs906cr during Q3FY21 over CPLY. The operating profit of the Chemicals Business increased by 33% from Rs143cr to Rs190cr in Q3FY21 over CPLY. During the quarter, the Specialty Chemicals Business performed exceedingly well owing to strong demand from the overseas markets, higher capacity utilization of dedicated / multipurpose facilities and significant cost-savings across all product streams.
The Fluorochemicals Business witnessed a revival in demand of refrigerants and healthy contribution from the chloromethanes segment, leading to a much better overall performance. The Packaging Films Business reported an increase of 26% in its segment revenue from Rs638cr to Rs802cr during Q3FY21 when compared with CPLY.
The operating profit of the Packaging Films Business increased by 42% from Rs149cr to Rs212cr in Q3FY21 over CPLY. New capacities in Thailand and Hungary aided further volume growth and both the BOPET and BOPP segments witnessed robust performance due to better operating leverage, improved margins, and a healthy demand from customers. The Technical Textiles Business reported an increase of 9% in its segment revenue from Rs336cr to Rs367cr during Q3FY21 over CPLY.
The operating profit of the Technical Textiles Business increased by 86% from Rs37cr to Rs68cr in Q3FY21 over CPLY. This was mainly due to fasterthan-expected recovery in the tyre industry. The Belting Fabrics segment contributed significantly to the overall performance of the Technical Textiles Business.
The Other Businesses reported an increase of 7% in its segment revenue from Rs69cr to Rs74cr in Q3FY21 when compared with CPLY. The operating profit of the Other Businesses remained flat at Rs8cr in Q3FY21 over CPLY. Both the Coated and Laminated Fabrics Business performed very well in a difficult external environment.
In the 9M FY21 period, SRF’s revenue increased by 8% from Rs5,352cr to Rs5,792cr over CPLY. The company’s EBIT increased by 36% from Rs918cr to Rs1,253cr over CPLY. The company’s PAT increased by 13% from Rs722cr to Rs817cr over CPLY. Net of one-time tax adjustments in CPLY, PAT increased by 37% from Rs598cr to Rs817cr.
As of December 31, 2020, the company has applied for 298 patents, with four patents applied during the quarter. Till date, the company has been granted eighty-three patents globally.
SRF’s Specialty Chemicals Business was awarded the Syngenta Supplier Award 2020 for performance. Ashish Bharat Ram, Managing Director of SRF Ltd. was named India’s Best CEO in the emerging companies category by Business Today.