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SRF
28-Jul-21   20:54 Hrs IST
SRFconsolidated net sales increased 74.70% to Rs 2699.4 crore in Q1FY22 comparedto Q1FY21.  Sales of Technical TextileBusiness segment has gone up 250.99% to Rs 492.93 crore (accounting for 18.25%of total sales).  Sales of Chemicals andPolymers Business segment has gone up 57.92% to Rs 1,113.66 crore (accountingfor 41.22% of total sales). Sales of Packing Film Business segment rose 53.73%to Rs 1,041.28 crore (accounting for 38.54% of total sales). Sales of Otherssegment has gone up 126.33% to Rs 53.64 crore (accounting for 1.99% of totalsales). Inter-segment sales rose Rs 1.56 crore to Rs 2.11 crore.

Operatingprofit margin has jumped from 23.51% to 24.88%, leading to 84.87% rise inoperating profit to Rs 671.55 crore.  Rawmaterial cost as a % of total sales (net of stock adjustments) increased from45.54% to 48.07%. Purchase of finished goods cost rose from 0.81% to 1.09%. Employeecost decreased from 9.18% to 6.76%. Other expenses fell from 20.22% to 19.11%.Power and Oil fuel cost rose from 8.23% to 8.62%.  

Otherincome rose 36.44% to Rs 13.78 crore. Profit before interest, tax and otherunallocable items (PBIT) have jumped 101.58% to Rs 594.65 crore. PBIT ofTechnical Textile Business reported profit of Rs 133.68 crore compared to lossof Rs 14.02 crore.  PBIT of Chemicals andPolymers Business segment rose 151.00% to Rs 222.29 crore (accounting for37.38% of total PBIT).  PBIT of PackingFilm Business segment rose 7.27% to Rs 236.78 crore (accounting for 39.82% oftotal PBIT).  PBIT of Others reportedprofit of Rs 1.90 crore compared to loss of Rs 0.28 crore. 

PBITmargin of Technical Textile Business segment rose from negative 9.98% to27.12%. PBIT margin of Chemicals andPolymers Business segment rose from 12.56% to 19.96%. PBIT margin of Packing Film Business segmentfell from 32.59% to 22.74%.  PBIT marginof others segment rose from negative 1.18% to 3.54%. Overall PBIT margin rose from 19.07% to22.01%. 

Provisionfor interest fell 36.35% to Rs 27.47 crore. Provision for depreciation rose 18.20% to Rs 122.95 crore.  Profit before tax grew 136.51% to Rs 534.91crore.  Provision for tax was expense ofRs 139.63 crore, compared to Rs 49.3 crore. Effective tax rate was 26.10% compared to 21.80%. Net profitattributable to owners of the company increased 123.49% to Rs 395.28crore. 

Commenting on theresults, Managing Director, Ashish Bharat Ram said, “It has been an excellent quarterfor the company despite the short-term challenges emanating from the lockdowns.We worked on various countermeasures to ensure that we performed well. Goingforward, I remain cautiously optimistic of our performance. The re-emergence ofCOVID-19 in some of our key markets along with significant increase in globalfreight rates remain a risk for us.”

Consolidated Q1FY22Segment Results

Thechemicals Business reported an increase of 58% in its segment revenue from Rs705 crore to Rs1,114 crore during Q1FY22 over CPLY. The operating profit of thechemicals Business increased 151% from Rs 89 crore to Rs 222 crore in Q1FY22over Corresponding Period Last Year (CPLY). During the quarter, the SpecialtyChemicals Business performed well owing to higher sales from exports anddomestic markets. The Fluorochemicals Business witnessed higher sales volumesin the refrigerants and the blends segments with better sales realizations,especially from the export markets. In addition, healthy contribution from thechloromethanes segment augmented the overall results. The second wave ofCOVID-19 induced lockdowns resulted in disruption of supply chains, leading toan overall increase in raw material prices and export freight acrossgeographies.

ThePackaging Films Business reported an increase of 54% in its segment revenuefrom Rs 677 crore to Rs 1,041 crore during Q1FY22 when compared with CPLY. Theoperating profit of the Packaging Films Business increased 7% from Rs 221 croreto Rs 237 crore in Q1FY22 over CPLY. During the quarter, while the domesticdemand for BOPET films remained muted, we witnessed healthy demand for BOPPfilms. New capacities that came on-stream in the past six months in Hungary andThailand witnessed significantly better traction and enhanced sales ofValue-Added Products (VAPs) also contributed to the overall performance.

TheTechnical Textiles Business reported an increase of 251% in its segment revenuefrom Rs 140 crore to Rs 493 crore during Q1FY22 over CPLY. The operating profitof the Technical Textiles Business increased 1,054% from Rs (14) crore to Rs134 crore in Q1FY22 over CPLY. Re-structuring of margin profile with long-termcustomers has contributed to the overall performance of the Technical TextilesBusiness. In addition, higher sales volumes from the Nylon Tyre Cord Fabrics,Belting Fabrics and Polyester Industrial Yarn segments augured well for thebusiness.

TheOther Businesses reported an increase of 126% in its segment revenue from Rs 24crore to Rs 54 crore in Q1FY22 when compared with CPLY. The operating profit ofthe Other Businesses increased 814% from Rs (0.28) crore to Rs 2 crore inQ1FY22 over CPLY. Both the Coated and Laminated Fabrics Business performed wellin a difficult external environment.

Full year resultsanalysis

Netsales (including other operating income) of SRF has increased 16.51% to Rs8400.04 crore.  Sales of TechnicalTextile Business segment has gone down 8.65% to Rs 1,240.11 crore (accountingfor 14.75% of total sales).  Sales ofChemicals and Polymers Business segment has gone up 22.52% to Rs 3,644.89 crore(accounting for 43.35% of total sales). Sales of Packing Film Business segment rose 26.41% to Rs 3,291.72 crore(accounting for 39.15% of total sales). Sales of Others segment has gone down 16.64% to Rs 232.02 crore(accounting for 2.76% of total sales). Inter-segment sales rose Rs 5.43 crore to Rs 8.70 crore. 

Operatingprofit margin has jumped from 20.18% to 25.54%, leading to 47.44% rise inoperating profit to Rs 2,145.19 crore. Raw material cost as a % of total sales(net of stock adjustments) decreased from 50.50% to 47.54%. Purchase offinished goods cost fell from 1.25% to 0.74%. Employee cost decreased from7.42% to 7.34%. Other expenses fell from 20.89% to 19.06%. Power and Oil fuelcost fell from 9.21% to 8.47%.  

Otherincome rose 11.09% to Rs 54.49 crore. Profit before interest, tax and otherunallocable items (PBIT) have jumped 46.24% to Rs 1,828.50 crore.  PBIT of Technical Textile Business segmentrose 16.77% to Rs 176.90 crore (accounting for 9.67% of total PBIT).  PBIT of Chemicals and Polymers Businesssegment rose 42.36% to Rs 728.14 crore (accounting for 39.82% of total PBIT).  PBIT of Packing Film Business segment rose61.60% to Rs 897.87 crore (accounting for 49.10% of total PBIT).  PBIT of Others segment fell 19.45% to Rs25.59 crore (accounting for 1.40% of total PBIT). 

PBITmargin of Technical Textile Business segment rose from 11.16% to 14.26%.  PBIT margin of Chemicals and PolymersBusiness segment rose from 17.19% to 19.98%. PBIT margin of Packing Film Business segment rose from 21.34% to27.28%.  PBIT margin of Others segmentfell from 11.41% to 11.03%.  Overall PBITmargin rose from 17.33% to 21.75%. 

Provisionfor interest fell 33.25% to Rs 133.95 crore. Loan funds declined from Rs 3,354.76 crore as of 31 March 2020 to Rs3,008.34 crore as of 31 March 2021. Inventories rose to Rs 1,465.82 crore as of 31 March 2021 from Rs1,201.23 crore as of 31 March 2020. Sundry debtors were higher at Rs 1,274.56 crore as of 31 March 2021compared to Rs 891.07 crore as of 31 March 2020.  Cash and bank balance rose to Rs 282.00 croreas of 31 March 2021 from Rs 125.47 crore as of 31 March 2020.  Investments rose to Rs 416.68 crore as of 31March 2021 from Rs 202.66 crore as of 31 March 2020. 

Provisionfor depreciation rose 16.59% to Rs 453.08 crore.  Fixed assets increased to Rs 8,486.23 croreas of 31 March 2021 from Rs 7,760.26 crore as of 31 March 2020.  Intangible assets increased from Rs 0.62crore to Rs 112.99 crore. 

Profitbefore tax grew 76.30% to Rs 1,612.65 crore. Provision for tax was debit of Rs414.4 crore, compared to credit of Rs 1.2 crore.  Effective tax rate was 25.70% compared tonegative 0.13%. Net profit attributable to owners of the company increased30.83% to Rs 1,198.25 crore. 

Promoters'stake was 50.77% as of 31 March 2021 compared to 52.32% as of 31 March 2020. 

Cashflow from operating activities increased to Rs 1,771.68 crore for year endedMarch 2021 from Rs 1,304.44 crore for year ended March 2020.  Cash flow used in acquiring fixed assetsduring the year ended March 2021 stood at Rs 1,214.35 crore, compared to Rs1,389.16 crore during the year ended March 2020. 

Capex

TheBoard has approved a project for Integrated Expansion of Fluorocarbon basedRefrigerant Capacity at Dahej at a projected cost of Rs 550 crore to meet thegrowing demand for refrigerants in the domestic and exports market and isexpected to be completed in twenty-four months. To cater to the growing powerrequirements of new and upcoming plants at Dahej, the Board has approved theinstallation of 200 KV grid at a projected cost of Rs 135 crore.

Interim Dividend

Intoday's meeting of the board of directors, an interim dividend at the rate of120 percent, amounting to Rs 12 per share was approved.

Thescrip is currently trading at Rs 7721

 

SRF : Consolidated Results

 

Quarter ended

Year ended

Particulars

202106

202006

Var.(%)

202103

202003

Var.(%)
Net Sales

2,699.40

 1,545.15

 75

 8,400.04

 7,209.41

 17
OPM (%)

 24.9

 23.5

  

 25.5

 20.2

  
OP

 671.55

 363.25

 85

 2,145.19

 1,454.94

 47
Other Inc.

 13.78

 10.1

 36

 54.49

 49.05

 11
PBIDT

 685.33

 373.35

 84

 2,199.68

 1,503.99

 46
Interest

 27.47

 43.16

 -36

 133.95

 200.68

 -33
PBDT

 657.86

 330.19

 99

 2,065.73

 1,303.31

 59
Depreciation

 122.95

 104.02

 18

 453.08

 388.61

 17
PBT

 534.91

 226.17

 137

 1,612.65

 914.7

 76
Taxation

 139.63

 49.3

 183

 414.4

 -1.2

 PL
PAT

 395.28

 176.87

 123

 1198.25

 915.9

 31
Net profit

 395.28

 176.87

 123

 1198.25

 915.9

 31
EPS (Rs)*

 #

 #

  

 202.3

 154.6

  
Notes
* EPS is on current equity of Rs 59.25 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database
 

 

SRF : Consolidated Segment Results

 

Quarter ended

Year ended

 

% of (Total)

202106

202006

Var.(%)

% of (Total)

202103

202003

Var.(%)

Sales
Technical Textile Business

 18

 492.93

 140.44

 251

 15

 1,240.11

 1,357.55

 -9
Chemicals and Polymers Business

 41

 1,113.66

 705.22

 58

 43

 3,644.89

 2,974.96

 23
Packing Film Business

 39

 1,041.28

 677.35

 54

 39

 3,291.72

 2,603.99

 26
Others

 2

 53.64

 23.7

 126

 3

 232.02

 278.34

 -17
Total Reported Sales

 100

 2,701.51

 1,546.71

 75

 100

 8,408.74

 7,214.84

 17
Less: Inter segment revenues

  

 2.11

 1.56

 35

  

 8.7

 5.43

 60
Net Sales

  

 2,699.40

 1,545.15

 75

  

 8,400.04

 7,209.41

 17

PBIT
Technical Textile Business

 22

 133.68

 -14.02

 LP

 10

 176.9

 151.49

 17
Chemicals and Polymers Business

 37

 222.29

 88.56

 151

 40

 728.14

 511.48

 42
Packing Film Business

 40

 236.78

 220.74

 7

 49

 897.87

 555.62

 62
Others

 0

 1.9

 -0.28

 LP

 1

 25.59

 31.77

 -19
Total PBIT

 100

 594.65

 295

 102

 100

 1,828.50

 1,250.36

 46
Less : Interest

  

 27.47

 43.16

 -36

  

 133.95

 200.68

 -33
Add: Other un-allcoable

  

 -32.27

 -25.42

 27

  

 -84.63

 20.87

 PL

PBT

  

 534.91

 226.42

 136

  

 1,609.92

 1,070.55

 50
 


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