SRF Group’s Annual PAT Surges 86% at Rs. 303 Crore

• FY consolidated EBIDTA at Rs. 791 crore, up 45%

• FY consolidated net sales at Rs. 4492 crore, up 13%

• SRF standalone Q4 PAT at Rs. 59 crore, up 11%

• SRF standalone Q4 net sales at Rs. 847 crore, down 4%

• Consolidated Net Debt/Equity improved to 0.99 times as on 31st March 2015

• Consolidated Annual EPS increased to Rs. 52.74, up 86%                                                                                                                                                          

Consolidated Annual Financials: SRF Limited

Aided by successful stabilization of both the overseas greenfield packaging film units in the first full year of their operation and overall improvement in performance across businesses, SRF Ltd, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, reported 86% increase in consolidated net profit after tax (PAT) at Rs. 303 crore for the fiscal ended 31^st March 2015. SRF’s audited results were approved by the Board of Directors in a meeting held this afternoon.

The company’s consolidated net sales also grew by 13% to Rs. 4492 crore as against Rs. 3993 crore recorded in the previous year despite softening of crude oil prices which adversely impacted the realizations for most of SRF products. The consolidated EBIDTA of the company also improved by 45% from Rs. 546 crore during 2013-14 to Rs. 791 crore during 2014-15.

MD’s Comments

Reflecting on the results, Ashish Bharat Ram, Managing Director, SRF, said, “I am happy with the overall performance of the company which has been in sync with our plan. In spite of an adverse impact of raw material prices in the second half of the year we were able to increase our profitability. Our investments in the chemicals and polyester films businesses are paying off and we remain confident of our ability to reap the benefits of an upturn in the economy.”

Consolidated Annual Segment Results: SRF Limited

In the segment results, riding on enhanced investments in the R&D driven fluorine based specialty chemicals, the Chemicals & Polymers Business reported 56% increase in its operating profit from Rs. 191 crore to Rs. 298 crore during April-March 2014-15 over CPLY. The segment revenue of the business also surged by 32% from Rs. 956 crore to Rs. 1263 crore during the financial year 2014-15. While the Packaging Films Business could partially offset the decline in crude oil prices and continued slowdown in the economy with higher returns from the full year operations of its newly commissioned overseas plants, an increase of 41% in its segment revenue from Rs. 883 crore to Rs. 1246 crore during the period, the Technical Textiles Business reported a reduction of 7% in its segment revenue at Rs. 2040 crore. The Packaging Films Business turned around during the year with its operating profit of Rs. 64 crore during 2014-15 as against operating loss of Rs. 5 crore recorded during the previous year and the operating profits for the Technical Textiles Business improved by 20% from Rs. 163 crore to Rs. 196 crore.

Q4 Results: SRF standalone

SRF Limited reported 11% rise in its standalone net profit after tax (PAT) at Rs. 59 crore for the quarter ended March 31 2015 as against Rs. 53 crore posted in the year ago period. The company’s EBIDTA at Rs. 141 crore for the fourth quarter also increased by 25% over the corresponding period last year (CPLY). The profits of the company improved despite a marginal decline of 4% in net sales at Rs. 847 crore during the period mainly due to sharp decline in crude oil prices as mentioned above.

Financial Ratios

The consolidated Net Debt to Equity ratio for SRF Limited improved from 1.01 as on 31st March 2014 to 0.99 times as on 31^st March 2015 and the consolidated Earnings Per Share (EPS) of the company increased by 86% from previous year’s figure of Rs. 28.29 to Rs. 52.74 for 2014-15.

Capex

The board approved two separate capex proposals, one for setting up a dedicated plant at Dahej to manufacture existing range of specialty chemicals being produced at its Bhiwadi plant to cater to the increasing demand from pharma sector and the other for improving the product development capability in Engineering Plastics at a total investment of around Rs. 54 crore.

Dividend

In August 2014 and in February 2015, the SRF Board had approved two interim dividends of 50% each, aggregating to a total of Rs.10 per share. In today’s meeting, the board did not recommend any final dividend for the year 2014-15.

Other Business Highlights

Among other things, SRF acquired the global 134a pharma business from DuPont; it completed 1^st order for supply of HFC 134a cans to Walmart in US and it established its leadership position in Thailand for BOPET Films in the first full year of operation of its Thailand plant during the year.

About SRF:

Established in 1970, SRF as a group has today grown into a global entity with operations in 3 countries. Apart from Technical Textiles Business, in which it enjoys a global leadership position, SRF is a domestic leader in Refrigerants, Engineering Plastics and Industrial Yarns as well. The company also enjoys a significant presence among the key domestic manufacturers of Polyester Films and Specialty Chemicals. Building on its in-house R&D facilities for Chemicals Business and Technical Textiles Business, the company strives to stay ahead in business through innovations in operations and product development. A winner of the prestigious Deming Prize for two of its businesses namely Tyre Cord and Chemicals, SRF continues to redefine its work and corporate culture with the TQM as its management way.  

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