SRF Announces Quarterly Results (3QFY21); Net Profit Down 6.1%

Fri, 22 Jan

SRF has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

SRF Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	18,505	21,008	21,464	2.2%	16.0%
Other income	Rs m	56	98	217	122.4%	289.9%
Turnover	Rs m	18,561	21,106	21,681	2.7%	16.8%
Expenses	Rs m	14,476	15,283	15,803	3.4%	9.2%
Gross profit	Rs m	4,029	5,725	5,661	-1.1%	40.5%
Depreciation	Rs m	1,019	1,140	1,166	2.2%	14.4%
Interest	Rs m	475	362	285	-21.2%	-40.1%
Profit before tax	Rs m	2,591	4,321	4,428	2.5%	70.9%
Tax	Rs m	-864	1,164	1,185	1.8%
Profit after tax	Rs m	3,455	3,157	3,243	2.7%	-6.1%
Gross profit margin	%	21.8	27.3	26.4
Effective tax rate	%	-33.4	26.9	26.8
Net profit margin	%	18.6	15.0	15.0

Year-on-Year Performance:

• The company's operating income during the quarter grew 16.0% on a year-on-year (YoY) basis. The expenses were up by 9.2% YoY during the same period.
• The company's operating profit increased by 40.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 26.4% in 3QFY21 as against 21.8% in 3QFY20.
• Depreciation charges increased by 14.4% and finance costs declined by 40.1% YoY, respectively.
• Other income increased by 289.9% YoY during the quarter.
• Net profit for the quarter declined by 6.1% YoY. Net profit margins during the quarter declined from 18.6% in 3QFY20 to 15.0% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 2.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 3.4% QoQ during the same period.
• The company's operating profit declined by 1.1% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 26.4% in 3QFY21 as against 27.3% in 2QFY20.
• Net profit for the quarter increased by 2.7% QoQ, while net profit margins declined from 15.0% in 2QFY20 to 15.0% in 3QFY21.

To see how SRF has performed over the last eight quarters,please visit here.

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SRF Share Price Performance

Over the last one year, SRF share price has moved up from Rs 3,608.2 to Rs 5,404.4, registering a Gain of Rs 1,796.3 or around 49.8%.

Overall, the S&P BSE SENSEX is up 18.1% over the year.

Current Valuations

At the current price of Rs 5,404.4, the price to earnings (P/E) ratio of SRF stands at 36.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 8.9 times.