SRF Limited announces Q4 and FY20 financial results

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 fourth quarter and full year ended March 31, 2020. The Company's audited results were approved by the board of directors in a meeting held today via video conferencing.

Consolidated Q4FY20 Financials

The consolidated revenue of the Company decreased 4% from Rs. 1,937 crore to Rs. 1,858 crore in Q4FY20 when compared with Corresponding Period Last Year (CPLY). The Company's Earnings before Interest and Tax (EBIT) increased 2% from Rs. 325 crore to Rs. 332 crore in Q4FY20 when compared with CPLY. The Company's Profit after Tax (PAT) rose 8% from Rs. 179 crore to Rs. 194 crore in Q4FY20 when compared with CPLY.

Commenting on the results, Managing Director, Ashish Bharat Ram said, "The demand for Specialty Chemicals has been robust and the Business has contributed as per expectations. The Packaging Films Business has also done well and continues to increase its footprint across the globe. All the Business segments were adversely affected due to the lockdown announced by the Government of India in March 2020."

Consolidated Q4FY20 Segment Results

The Chemicals Business reported an increase of 5% in its segment revenue from Rs. 840 crore to Rs. 882 crore during Q4FY20 over CPLY. The operating profit of the Chemicals Business decreased 4% from Rs. 166 crore to Rs. 159 crore in Q4FY20 over CPLY. The Specialty Chemicals Business has performed well during the quarter and in line with the expectations. The Fluorochemicals Business was adversely impacted during the quarter as the automobile sector continued to remain under severe pressure as well as due to the low prices of key refrigerants. Impact of the COVID-19 related lockdown led to certain sales being deferred.

The Packaging Films Business reported a decrease of 3% in its segment revenue from Rs. 623 crore to Rs. 601 crore during Q4FY20 when compared with CPLY largely due to a decrease in prices of key raw materials. The operating profit of the Packaging Films Business increased 24% from Rs. 106 crore to Rs. 131 crore in Q4FY20 over CPLY. Both the BOPET and BOPP segments delivered steady returns to the overall performance due to improved margins, better plant efficiencies and an increased focus on sale of Value-Added Products.

The Technical Textiles Business reported a decrease of 22% in its segment revenue from Rs. 404 crore to Rs. 317 crore during Q4FY20 over CPLY. The operating profit of the Technical Textiles Business decreased 22% from Rs. 48 crore to Rs. 37 crore in Q4FY20 over CPLY due to a challenging operating environment. The Tyre Cord Fabric segment was particularly impacted because of a double-digit de-growth in the auto sector.

The Other Businesses reported a decrease of 19% in its segment revenue from Rs. 71 crore to Rs. 58 crore in Q4FY20 when compared with CPLY. The operating profit of the Other Businesses decreased from Rs. 6 crore to Rs. 5 crore in Q4FY20 over CPLY.

Consolidated Annual Results

In FY20, SRF's revenue increased 2% from Rs. 7,100 crore to Rs. 7,209 crore over CPLY. The Company's EBIT increased 16% from Rs. 1,079 crore to Rs. 1,250 crore over CPLY. The Company's PAT increased 55% from Rs. 592 crore to Rs. 916 crore over CPLY.

Innovation and Intellectual Property

As of March 31, 2020, the Company has applied for 205 patents, with fifteen patents applied during the quarter. Till date, the Company has been granted seventy patents globally.

Awards and Recognition

Arun Bharat Ram, Chairman - SRF Limited was conferred the EY Entrepreneur of the Year 2019 in the manufacturing category.

Shares of SRF LTD. was last trading in BSE at Rs.3791.05 as compared to the previous close of Rs. 3652.6. The total number of shares traded during the day was 20011 in over 2499 trades.

The stock hit an intraday high of Rs. 3849.7 and intraday low of 3626.05. The net turnover during the day was Rs. 74540587.

Source : Equity Bulls

Keywords