New Delhi [India]: SRF, a chemical based multi-business entity engaged in the manufacturing of industrial intermediates today announced its unaudited financial results for the quarter ended 30th September 2016. The company has adopted Indian Accounting Standards (IndAS) with effect from 1 April 2016. The figures for the quarter ended 30 September 2015 have also been restated as per IndAS.
PAT rose 17 percent from Rs. 102 crore to Rs. 119 crore in Q2FY17, mainly on account of lower finance cost and gain in Exchange Currency Fluctuation. EBIT remained flat at Rs. 181 crore in Q2FY17 over the Corresponding Period Last Year (CPLY).
Impacted by a significant reduction in commodity prices when compared with CPLY, the company’s revenue declined marginally by two percent to Rs. 1215 crore in Q2FY17 over CPLY.
“Despite a weak global economy, the company has performed well. The global Agro sector continues to remain weak. The company is using this opportunity to accelerate qualifications of various new molecules for both the Agro and Pharma sectors,” said Ashish Bharat Ram, Managing Director.
“Going forward, increased capex is being undertaken to ensure that we have capacities in place to meet the expected rebound.”
Consolidated Segment Results
Segment revenue of the Chemicals and Polymers Business remained flat from Rs. 385 crore to Rs. 386 crore in Q2FY17 over CPLY. Operating profit of the Chemicals and Polymers business decreased by 21 percent in Q2FY17, impacted mainly due to global agrochemicals slowdown.
The Packaging Films Business reported a decline of two percent from Rs. 356 crore to Rs. 349 crore in its segment revenue in Q2FY17 over CPLY, but increased its operating profit by eight percent from Rs. 49 crore to Rs. 53 crore in Q2FY17.
The commodity price cycle impacted the revenues of the Technical Textiles Business that reported a decline of four percent in its segment revenue from Rs. 502 crore to Rs. 481 crore in Q2FY17 over CPLY. The operating profit of the Technical Textiles Business, however, increased by 32 percent from Rs. 46 crore to Rs. 61 crore in Q2FY17, on account of better volumes and operational cost savings.
The Board approved capex aggregating Rs. 128 crore in the Chemicals business for augmenting new facilities and the production of new products in existing Flexible Multi-Purpose Plants (FMPs) and the setting up of cGMP (Current Good Manufacturing Practices)plant to tap upcoming business opportunities in the Pharma sector that require cGMP compliance at its Dahej, Gujarat facility.
In the first six months of 2016-17, the company’s PAT grew by 22 percent from Rs. 216 crore to Rs. 263 crore over CPLY. SRF’s revenue at Rs. 2515 crore decreased by one percent during the same period. The company’s EBIT increased by seven percent from Rs. 392 crore to Rs. 420 crore during the same period over CPLY. (ANI)