|
Consolidated
Net sales (including other operating income) of SRF has declined 14.77% to Rs
3177.36 crore. Sales of Technical
Textile Business segment has gone up 8.56% to Rs 506.15 crore (accounting for
15.91% of total sales). Sales of
Chemicals and Polymers Business segment has gone down 22.07% to Rs 1,426.30
crore (accounting for 44.84% of total sales).
Sales of Packing Film Business segment fell 15.74% to Rs 1,121.51 crore
(accounting for 35.26% of total sales).
Sales of Others segment has gone up 26.38% to Rs 126.86 crore
(accounting for 3.99% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 22.66% to
Rs 533.07 crore. PBIT of Technical
Textile Business segment rose 19.10% to Rs 74.95 crore (accounting for 14.06%
of total PBIT). PBIT of Chemicals and
Polymers Business segment fell 32.77% to Rs 347.77 crore (accounting for 65.24%
of total PBIT). PBIT of Packing Film
Business segment fell 23.84% to Rs 77.26 crore (accounting for 14.49% of total
PBIT). PBIT of Others segment rose
335.97% to Rs 33.09 crore (accounting for 6.21% of total PBIT).
PBIT
margin of Technical Textile Business segment rose from 13.50% to 14.81%. PBIT margin of Chemicals and Polymers
Business segment fell from 28.26% to 24.38%.
PBIT margin of Packing Film Business segment fell from 7.62% to 6.89%. PBIT margin of Others segment rose from 7.56%
to 26.08%. Overall PBIT margin fell from
18.49% to 16.76%.
The
Chemicals Business reported a decrease of 22% in its segment revenue from Rs 1,830
crore to Rs 1,426 crore during Q2FY24 over CPLY. The operating profit of the
Chemicals Business decreased 33% from Rs 517 crore to Rs 348 crore in Q2FY24
over CPLY. During the quarter, the Specialty Chemicals Business witnessed weak
global demand owing to the ongoing inventory rationalization by certain key
customers. The performance of the Fluorochemicals Business was adversely
impacted due to low demand for refrigerants and resultant pressure on margins.
In addition, sluggish growth in the pharmaceuticals and agrochemical industries
adversely impacted the demand for some industrial chemicals.
The
Packaging Films Business reported a decrease of 16% in its segment revenue from
Rs 1,331 crore to Rs 1,122 crore during Q2FY24 when compared with CPLY. The
operating profit of the Packaging Films Business declined 24% from Rs 101 crore
to Rs 77 crore in Q2FY24 over CPLY. During the quarter, the Packaging Films
Business faced headwinds on account of substantial supply addition in both
BOPET and BOPP film segments, resulting in significant pressure on margins and
an overall demand slowdown globally.
The
Technical Textiles Business reported an increase of 9% in its segment revenue
from Rs 466 crore to Rs 506 crore during Q2FY24 over CPLY. The operating profit
of the Technical Textiles Business increased 19% from Rs 63 crore to Rs 75
crore in Q2FY24 over CPLY. During the quarter, the Technical Textiles Business
performed well owing to higher sales volume of its flagship Nylon Tyre Cord
Fabric. Additionally, the Business witnessed healthy demand for its Belting
Fabrics and Polyester Yarn segments due to increased infrastructural spending
by the Government.
The
Other Businesses reported an increase of 27% in its segment revenue from Rs 100
crore to Rs 127 crore in Q2FY24 when compared with CPLY. The operating profit
of the Other Businesses increased 313% from Rs 8 crore to Rs 33 crore in Q2FY24
over CPLY. During the quarter, the Coated Fabrics segment performed well
because of strong domestic sales driven by healthy demand for its products. The
Laminated Fabrics segment also performed in line with the expectations.
Operating
profit margin has declined from 20.63% to 19.71%, leading to 18.58% decline in
operating profit to Rs 626.21 crore. Raw
material cost as a % of total sales (net of stock adjustments) decreased from
49.29% to 49.27%. Purchase of finished
goods cost fell from 1.73% to 0.94%.
Employee cost increased from 5.39% to 7.25%. Other expenses rose from 22.37% to
22.53%. Power and Oil fuel cost rose
from 10.31% to 10.99%.
Other
income fell 11.06% to Rs 29.12 crore.
PBIDT fell 18.27% to Rs 655.33 crore.
Provision for interest rose 78.30% to Rs 79.29 crore.
PBDT
fell 23.94% to Rs 576.04 crore.
Provision for depreciation rose 15.74% to Rs 161.23 crore.
Profit
before tax down 32.89% to Rs 414.81 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 114.03
crore, compared to Rs 137.09 crore.
Effective tax rate was 27.49% compared to 22.18%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 37.47% to Rs
300.78 crore.
Equity
capital stood at Rs 297.44 crore as of 30 September 2023 to Rs 297.44 crore as
of 30 September 2022. Per share face
Value remained same at Rs 10.00.
Promoters’
stake was 50.53% as of 30 September 2023 ,compared to 50.53% as of 30 September
2022 .
Commenting on the
results, Chairman and Managing Director, Ashish Bharat Ram said, “During the quarter, we felt the
brunt of the destocking and inventory rationalization phenomenon in our Chemicals
Business. Having said that, we are now beginning to see some positive traction
that should bode well for a better second half of FY24. The overcapacity in our
Packaging Films Business will continue for some more time.”
Capex
The
Board has approved a project for setting up a manufacturing facility for
Capacitor Grade BOPP Film at Indore, India at a projected cost of Rs 275 crore.
The
Board has also approved a project for setting up a new and dedicated facility
to produce an agrochemical intermediate at Dahej, India at a projected cost of Rs
235 crore to meet the growing demand for the product in the future.
For year-to-date (YTD)
results analysis
Net
sales (including other operating income) of SRF has declined 14.52% to Rs
6515.74 crore. Sales of Technical
Textile Business segment has gone down 6.41% to Rs 970.80 crore (accounting for
14.89% of total sales). Sales of
Chemicals and Polymers Business segment has gone down 13.11% to Rs 3,086.84
crore (accounting for 47.35% of total sales).
Sales of Packing Film Business segment fell 21.60% to Rs 2,216.32 crore
(accounting for 34.00% of total sales).
Sales of Others segment has gone up 19.22% to Rs 245.57 crore
(accounting for 3.77% of total sales).
Inter-segment sales rose Rs 0.33 crore to Rs 3.79 crore.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 30.68% to
Rs 1,128.25 crore. PBIT of Technical
Textile Business segment fell 24.31% to Rs 135.60 crore (accounting for 12.02%
of total PBIT). PBIT of Chemicals and
Polymers Business segment fell 22.14% to Rs 807.84 crore (accounting for 71.60%
of total PBIT). PBIT of Packing Film
Business segment fell 67.59% to Rs 128.56 crore (accounting for 11.39% of total
PBIT). PBIT of Others segment rose
291.99% to Rs 56.25 crore (accounting for 4.99% of total PBIT).
PBIT
margin of Technical Textile Business segment fell from 17.27% to 13.97%. PBIT margin of Chemicals and Polymers
Business segment fell from 29.20% to 26.17%.
PBIT margin of Packing Film Business segment fell from 14.03% to
5.80%. PBIT margin of Others segment
rose from 6.97% to 22.91%. Overall PBIT
margin fell from 21.35% to 17.31%.
Operating
profit margin has declined from 23.14% to 20.30%, leading to 25.03% decline in
operating profit to Rs 1,322.46 crore.
Raw material cost as a % of total sales (net of stock adjustments)
increased from 48.32% to 50.18%.
Purchase of finished goods cost fell from 1.80% to 0.84%. Employee cost increased from 5.10% to
6.82%. Other expenses rose from 21.70%
to 21.89%. Power and Oil fuel cost rose
from 10.26% to 10.68%.
Other
income fell 4.02% to Rs 40.88 crore.
PBIDT fell 24.54% to Rs 1363.34 crore.
Provision for interest rose 88.28% to Rs 144.92 crore. Loan funds rose to Rs 4,976.10 crore as of 30
September 2023 from Rs 3,833.13 crore as of 30 September 2022. Inventories declined from Rs 2,369.94 crore
as of 30 September 2022 to Rs 2,290.90 crore as of 30 September 2023. Sundry debtors were lower at Rs 1,748.28
crore as of 30 September 2023 compared to Rs 1,868.92 crore as of 30 September
2022. Cash and bank balance rose to Rs
397.19 crore as of 30 September 2023 from Rs 363.94 crore as of 30 September
2022. Investments rose to Rs 572.65
crore as of 30 September 2023 from Rs 328.66 crore as of 30 September 2022
.
PBDT
fell 29.56% to Rs 1218.42 crore.
Provision for depreciation rose 17.71% to Rs 317.84 crore. Fixed assets increased to Rs 13,422.85 crore
as of 30 September 2023 from Rs 10,892.35 crore as of 30 September 2022. Intangible assets increased from Rs 114.70
crore to Rs 116.79 crore.
Profit
before tax down 38.30% to Rs 900.58 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 240.51
crore, compared to Rs 370.68 crore.
Effective tax rate was 26.71% compared to 25.39%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 39.39% to Rs
660.07 crore.
Equity
capital stood at Rs 297.44 crore as of 30 September 2023 to Rs 297.44 crore as
of 30 September 2022. Per share face
Value remained same at Rs 10.00.
Promoters’
stake was 50.53% as of 30 September 2023 ,compared to 50.53% as of 30 September
2022 .
The
scrip is currently trading at Rs 2176
|
SRF : Consolidated Results
|
|
Particulars
|
2309
(03)
|
2209
(03)
|
Var.(%)
|
2309
(06)
|
2209
(06)
|
Var.(%)
|
2303
(12)
|
2203
(12)
|
Var.(%)
|
|
Net Sales
|
3,177.36
|
3,727.78
|
-15
|
6,515.74
|
7,622.50
|
-15
|
14,870.25
|
12,433.66
|
20
|
|
OPM (%)
|
19.7
|
20.6
|
|
20.3
|
23.1
|
|
23.7
|
25.5
|
|
|
OP
|
626.21
|
769.11
|
-19
|
1,322.46
|
1,764.08
|
-25
|
3,529.20
|
3,175.91
|
11
|
|
Other Inc.
|
29.12
|
32.74
|
-11
|
40.88
|
42.59
|
-4
|
74.93
|
42.8
|
75
|
|
PBIDT
|
655.33
|
801.85
|
-18
|
1,363.34
|
1,806.67
|
-25
|
3,604.13
|
3,218.71
|
12
|
|
Interest
|
79.29
|
44.47
|
78
|
144.92
|
76.97
|
88
|
204.82
|
115.93
|
77
|
|
PBDT
|
576.04
|
757.38
|
-24
|
1,218.42
|
1,729.70
|
-30
|
3,399.31
|
3,102.78
|
10
|
|
Depreciation
|
161.23
|
139.3
|
16
|
317.84
|
270.03
|
18
|
575.32
|
517.23
|
11
|
|
PBT
|
414.81
|
618.08
|
-33
|
900.58
|
1459.67
|
-38
|
2823.99
|
2585.55
|
9
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
414.81
|
618.08
|
-33
|
900.58
|
1459.67
|
-38
|
2823.99
|
2585.55
|
9
|
|
EO Income
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT after EO
|
414.81
|
618.08
|
-33
|
900.58
|
1459.67
|
-38
|
2823.99
|
2585.55
|
9
|
|
Taxation
|
114.03
|
137.09
|
-17
|
240.51
|
370.68
|
-35
|
661.65
|
696.63
|
-5
|
|
PAT
|
300.78
|
480.99
|
-37
|
660.07
|
1088.99
|
-39
|
2162.34
|
1888.92
|
14
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
300.78
|
480.99
|
-37
|
660.07
|
1088.99
|
-39
|
2162.34
|
1888.92
|
14
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
72.95
|
63.72
|
|
|
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)
|
2309
(03)
|
2209
(03)
|
Var.(%)
|
% of
(Total)
|
2309
(06)
|
2209
(06)
|
Var.(%)
|
% of
(Total)
|
2303
(12)
|
2203
(12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Technical Textile Business
|
16
|
506.15
|
466.22
|
9
|
15
|
970.8
|
1,037.24
|
-6
|
13
|
1,893.88
|
2,085.24
|
-9
|
|
Chemicals and Polymers Business
|
45
|
1,426.30
|
1,830.16
|
-22
|
47
|
3,086.84
|
3,552.59
|
-13
|
50
|
7,410.88
|
5,240.78
|
41
|
|
Packing Film Business
|
35
|
1,121.51
|
1,331.02
|
-16
|
34
|
2,216.32
|
2,827.02
|
-22
|
35
|
5,182.75
|
4,779.21
|
8
|
|
Others
|
4
|
126.86
|
100.38
|
26
|
4
|
245.57
|
205.98
|
19
|
3
|
392.61
|
340.34
|
15
|
|
Total Reported Sales
|
100
|
3,180.82
|
3,727.78
|
-15
|
100
|
6,519.53
|
7,622.83
|
-14
|
100
|
14,880.12
|
12,445.57
|
20
|
|
Less: Inter segment revenues
|
|
3.46
|
0
|
-
|
|
3.79
|
0.33
|
999
|
|
9.87
|
11.91
|
-17
|
|
Net Sales
|
|
3,177.36
|
3,727.78
|
-15
|
|
6,515.74
|
7,622.50
|
-15
|
|
14,870.25
|
12,433.66
|
20
|
|
PBIT
|
|
|
|
|
|
Technical Textile Business
|
14
|
74.95
|
62.93
|
19
|
12
|
135.6
|
179.14
|
-24
|
8
|
261.74
|
471.43
|
-44
|
|
Chemicals and Polymers Business
|
65
|
347.77
|
517.28
|
-33
|
72
|
807.84
|
1,037.49
|
-22
|
73
|
2,340.67
|
1,396.91
|
68
|
|
Packing Film Business
|
14
|
77.26
|
101.44
|
-24
|
11
|
128.56
|
396.61
|
-68
|
17
|
556.19
|
946.33
|
-41
|
|
Others
|
6
|
33.09
|
7.59
|
336
|
5
|
56.25
|
14.35
|
292
|
1
|
34.82
|
20.35
|
71
|
|
Total PBIT
|
100
|
533.07
|
689.24
|
-23
|
100
|
1,128.25
|
1,627.59
|
-31
|
100
|
3,193.42
|
2,835.02
|
13
|
|
Less : Interest
|
|
79.29
|
44.47
|
78
|
|
144.92
|
76.97
|
88
|
|
204.82
|
115.93
|
77
|
|
Add: Other un-allcoable
|
|
-38.97
|
-26.69
|
-46
|
|
-82.75
|
-90.95
|
9
|
|
-164.61
|
-133.54
|
-23
|
|
PBT
|
|
414.81
|
618.08
|
-33
|
|
900.58
|
1,459.67
|
-38
|
|
2,823.99
|
2,585.55
|
9
|
|