|
Consolidated
net sales of SRF have increased 3.70% to Rs 3469.66 crore in Q3FY23 compared to
Q3FY22. Sales of Technical Textile
Business segment has gone down 20.80% to Rs 425.94 crore (accounting for 12.25%
of total sales). Sales of Chemicals and
Polymers Business segment has gone up 22.99% to Rs 1,756.62 crore (accounting
for 50.51% of total sales). Sales of
Packing Film Business segment fell 5.75% to Rs 1,202.68 crore (accounting for
34.58% of total sales). Sales of Others
segment has gone down 13.74% to Rs 92.34 crore (accounting for 2.66% of total
sales). Inter-segment sales rose Rs 3.24
crore to Rs 7.92 crore.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 8.75% to Rs
725.89 crore. PBIT of Technical Textile
Business segment fell 69.87% to Rs 34.20 crore (accounting for 4.71% of total
PBIT). PBIT of Chemicals and Polymers
Business segment rose 34.51% to Rs 563.93 crore (accounting for 77.69% of total
PBIT). PBIT of Packing Film Business
segment fell 53.34% to Rs 118.62 crore (accounting for 16.34% of total
PBIT). PBIT of Others segment rose 6.65%
to Rs 9.14 crore (accounting for 1.26% of total PBIT).
PBIT
margin of Technical Textile Business segment fell from 21.11% to 8.03%. PBIT margin of Chemicals and Polymers
Business segment rose from 29.35% to 32.10%.
PBIT margin of Packing Film Business segment fell from 19.92% to 9.86%. PBIT margin of Others segment rose from 8.01%
to 9.90%. Overall PBIT margin fell from
23.75% to 20.87%.
During
the quarter, the Specialty Chemicals Business performed exceedingly well on
account of strong demand for certain key products and their derivatives from
the overseas markets and higher capacity utilization of dedicated/multipurpose
facilities. Several new plants commissioned during the year contributed to the
overall performance.
The
fluorochemicals business had a healthy quarter owing to higher prices of
certain key refrigerant products in critical international markets and
increased domestic volumes of HFC’s and blends. In addition, healthy
contribution from the chloromethanes segment augmented the overall results.
The
Packaging films business faced head winds on account of significant supply
addition in BOPET and BOPP film segments in India, global demand slowdown and
steep energy costs in Europe. Pressure on margins is expected to continue as
excess supply scenario in BOPET is unlikely to change in the short term. While
there is a strain on margins, we believe that demand is trending towards global
suppliers with multi-locational facilities and in this regard SRF’s packaging
Films Business is well positioned.
In
the technical textiles business demand for nylon tyre cord fabric and polyester
industrial yarn remained weak during the quarter. Overall, the Business
continued to focus on operating efficiencies and running plants optimally.
Operating
profit margin has declined from 26.34% to 24.02%, leading to 5.43% decline in
operating profit to Rs 833.52 crore. Raw
material cost as a % of total sales (net of stock adjustments) decreased from
49.86% to 46.41%. Purchase of finished
goods cost rose from 1.29% to 3.73%.
Employee cost decreased from 5.93% to 5.90%. Other expenses rose from 17.66% to
20.55%. Power and Oil fuel cost rose
from 8.60% to 9.67%.
Other
income fell 6.19% to Rs 10.01 crore.
PBIDT fell 5.44% to Rs 843.53 crore.
Provision for interest rose 110.64% to Rs 61.95 crore.
PBDT
fell 9.40% to Rs 781.58 crore. Provision
for depreciation rose 13.79% to Rs 150.65 crore.
Profit
before tax down 13.60% to Rs 630.93 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 120.03
crore, compared to Rs 224.74 crore.
Effective tax rate was 19.02% compared to 30.77%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 1.06% to Rs
510.90 crore.
Promoters’
stake was 50.53% as of 31 December 2022 ,compared to 50.73% as of 31 December
2021.
Commenting on the
results, Chairman and Managing Director, Ashish Bharat Ram said, “In spite of the expected weakness
in our Packaging Films and Technical Textiles Businesses, the Company has done
well. The performance of our Chemicals Business remains strong and the
continuing investments in this segment are a testament to our confidence going
forward.”
For year-to-date (YTD)
results analysis
Net
sales of SRF have increased 24.85% to Rs 11092.16 crore. Sales of Technical Textile Business segment
has gone down 7.89% to Rs 1,463.18 crore (accounting for 13.18% of total
sales). Sales of Chemicals and Polymers
Business segment has gone up 44.73% to Rs 5,309.21 crore (accounting for 47.83%
of total sales). Sales of Packing Film
Business segment rose 18.90% to Rs 4,029.70 crore (accounting for 36.30% of
total sales). Sales of Others segment
has gone up 20.79% to Rs 298.32 crore (accounting for 2.69% of total
sales). Inter-segment sales came down
from Rs 8.64 crore to Rs 8.25 crore.
Profit
before interest, tax and other unallocable items (PBIT) have jumped 20.11% to
Rs 2,353.48 crore. PBIT of Technical
Textile Business segment fell 43.86% to Rs 213.34 crore (accounting for 9.06%
of total PBIT). PBIT of Chemicals and
Polymers Business segment rose 79.41% to Rs 1,601.42 crore (accounting for
68.04% of total PBIT). PBIT of Packing
Film Business segment fell 23.16% to Rs 515.23 crore (accounting for 21.89% of
total PBIT). PBIT of Others segment rose
44.46% to Rs 23.49 crore (accounting for 1.00% of total PBIT).
PBIT
margin of Technical Textile Business segment fell from 23.92% to 14.58%. PBIT margin of Chemicals and Polymers
Business segment rose from 24.33% to 30.16%.
PBIT margin of Packing Film Business segment fell from 19.78% to
12.79%. PBIT margin of Others segment
rose from 6.58% to 7.87%. Overall PBIT
margin fell from 22.03% to 21.20%.
Operating
profit margin has declined from 25.08% to 23.42%, leading to 16.59% rise in
operating profit to Rs 2,597.60 crore.
Raw material cost as a % of total sales (net of stock adjustments)
decreased from 49.81% to 47.71%.
Purchase of finished goods cost rose from 0.97% to 2.41%. Employee cost decreased from 6.22% to
5.35%. Other expenses rose from 18.52%
to 21.33%. Power and Oil fuel cost rose
from 8.74% to 10.07%.
Other
income rose 47.88% to Rs 52.6 crore.
PBIDT rose 17.09% to Rs 2650.2 crore.
Provision for interest rose 73.13% to Rs 138.92 crore.
PBDT
rose 15.03% to Rs 2511.28 crore.
Provision for depreciation rose 9.09% to Rs 420.68 crore.
Profit
before tax grew 16.30% to Rs 2,090.60 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 490.71
crore, compared to Rs 514.34 crore.
Effective tax rate was 23.47% compared to 28.61%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 24.67% to Rs
1,599.89 crore.
Promoters’
stake was 50.53% as of 31 December 2022 ,compared to 50.73% as of 31 December
2021.
Capex Update
The
board has approved a project for setting up a range of Specialty Fluoropolymers
at Dahej at a projected cost of Rs 595 crore. The project is expected to be
commissioned in 24 months. The Board has also approved a project for setting up
a new and dedicated facility to produce an agrochemical intermediate at Dahej
at a projected cost of Rs 110 crore to meet the growing demand for the product
in the future. This project is expected to be commissioned in ten months. In
addition, to cater to the growing requirements of new and upcoming plants at
Dahej, the Board has approved a project to create a structure for a new plant
building at a projected cost of Rs 40 crore.
The
scrip is currently trading at Rs 2144
|
SRF : Consolidated Results
|
|
Particulars
|
2212 (03)
|
2112 (03)
|
Var.(%)
|
2212 (09)
|
2112 (09)
|
Var.(%)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Net Sales
|
3,469.66
|
3,345.87
|
4
|
11,092.16
|
8,884.24
|
25
|
12,433.66
|
8,400.04
|
48
|
|
OPM (%)
|
24.0
|
26.3
|
|
23.4
|
25.1
|
|
25.5
|
25.5
|
|
|
OP
|
833.52
|
881.41
|
-5
|
2,597.60
|
2,227.91
|
17
|
3,175.91
|
2,145.19
|
48
|
|
Other Inc.
|
10.01
|
10.67
|
-6
|
52.6
|
35.57
|
48
|
42.8
|
54.49
|
-21
|
|
PBIDT
|
843.53
|
892.08
|
-5
|
2,650.20
|
2,263.48
|
17
|
3,218.71
|
2,199.68
|
46
|
|
Interest
|
61.95
|
29.41
|
111
|
138.92
|
80.24
|
73
|
115.93
|
133.95
|
-13
|
|
PBDT
|
781.58
|
862.67
|
-9
|
2,511.28
|
2,183.24
|
15
|
3,102.78
|
2,065.73
|
50
|
|
Depreciation
|
150.65
|
132.39
|
14
|
420.68
|
385.63
|
9
|
517.23
|
453.08
|
14
|
|
PBT
|
630.93
|
730.28
|
-14
|
2090.6
|
1797.61
|
16
|
2585.55
|
1612.65
|
60
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
630.93
|
730.28
|
-14
|
2090.6
|
1797.61
|
16
|
2585.55
|
1612.65
|
60
|
|
EO Income
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT after EO
|
630.93
|
730.28
|
-14
|
2090.6
|
1797.61
|
16
|
2585.55
|
1612.65
|
60
|
|
Taxation
|
120.03
|
224.74
|
-47
|
490.71
|
514.34
|
-5
|
696.63
|
414.4
|
68
|
|
PAT
|
510.9
|
505.54
|
1
|
1599.89
|
1283.27
|
25
|
1888.92
|
1198.25
|
58
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
510.9
|
505.54
|
1
|
1599.89
|
1283.27
|
25
|
1888.92
|
1198.25
|
58
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
63.7
|
40.4
|
|
|
Notes
|
|
* EPS is on current equity of Rs 296.42 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
|
|
|
% of (Total)
|
2212 (03)
|
2112 (03)
|
Var.(%)
|
% of (Total)
|
2212 (09)
|
2112 (09)
|
Var.(%)
|
% of (Total)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Technical Textile Business
|
12
|
425.94
|
537.77
|
-21
|
13
|
1,463.18
|
1,588.58
|
-8
|
17
|
2,085.24
|
1,240.11
|
68
|
|
Chemicals and Polymers Business
|
51
|
1,756.62
|
1,428.30
|
23
|
48
|
5,309.21
|
3,668.31
|
45
|
42
|
5,240.78
|
3,644.89
|
44
|
|
Packing Film Business
|
35
|
1,202.68
|
1,275.99
|
-6
|
36
|
4,029.70
|
3,389.01
|
19
|
38
|
4,779.21
|
3,291.72
|
45
|
|
Others
|
3
|
92.34
|
107.05
|
-14
|
3
|
298.32
|
246.98
|
21
|
3
|
340.34
|
232.02
|
47
|
|
Total Reported Sales
|
100
|
3,477.58
|
3,349.11
|
4
|
100
|
11,100.41
|
8,892.88
|
25
|
100
|
12,445.57
|
8,408.74
|
48
|
|
Less: Inter segment revenues
|
|
7.92
|
3.24
|
144
|
|
8.25
|
8.64
|
-5
|
|
11.91
|
8.7
|
37
|
|
Net Sales
|
|
3,469.66
|
3,345.87
|
4
|
|
11,092.16
|
8,884.24
|
25
|
|
12,433.66
|
8,400.04
|
48
|
|
PBIT
|
|
|
|
|
|
Technical Textile Business
|
5
|
34.2
|
113.51
|
-70
|
9
|
213.34
|
380.01
|
-44
|
17
|
471.43
|
176.9
|
167
|
|
Chemicals and Polymers Business
|
78
|
563.93
|
419.24
|
35
|
68
|
1,601.42
|
892.6
|
79
|
49
|
1,396.91
|
728.14
|
92
|
|
Packing Film Business
|
16
|
118.62
|
254.21
|
-53
|
22
|
515.23
|
670.5
|
-23
|
33
|
946.33
|
897.87
|
5
|
|
Others
|
1
|
9.14
|
8.57
|
7
|
1
|
23.49
|
16.26
|
44
|
1
|
20.35
|
25.59
|
-20
|
|
Total PBIT
|
100
|
725.89
|
795.53
|
-9
|
100
|
2,353.48
|
1,959.37
|
20
|
100
|
2,835.02
|
1,828.50
|
55
|
|
Less : Interest
|
|
61.95
|
29.41
|
111
|
|
138.92
|
80.24
|
73
|
|
115.93
|
133.95
|
-13
|
|
Add: Other un-allcoable
|
|
-33.01
|
-35.84
|
8
|
|
-123.96
|
-81.52
|
-52
|
|
-133.54
|
-84.63
|
-58
|
|
PBT
|
|
630.93
|
730.28
|
-14
|
|
2,090.60
|
1,797.61
|
16
|
|
2,585.55
|
1,609.92
|
61
|
|