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SRF consolidated gross sales grew by 19.7% in Q4FY17 at Rs 1,416 crore when compared with corresponding Period Last Year (CPLY). The company reported a 15.7% increase in its consolidated Profit After Tax (PAT) from Rs 112 crore in Q4FY16 to Rs 129 crore in Q4FY17. Consolidated gross sales of the company grew by 4.9% from Rs 4,898 crore in FY16 to Rs 5,137 crore in FY17. The company reported a 19.8% increase in its consolidated PAT from Rs 430 crore in FY16 to Rs 515 crore in FY17.
Commenting on the results, Managing Director, Ashish Bharat Ram said "In spite of a very challenging environment we have performed well. The benefits of being a diversified entity have come through as seen by the performance of our Technical Textiles Business. While our long term strategy remains intact, we see challenges in the year ahead with agrochemicals remaining weak."
The company approved capex aggregating approximately Rs 200 crore in the Chemicals Business to create production capability to produce new agrochemical with a peak production capacity of 250 MT and carry out modifications in the P 11/12 plant with the objective of improving capacities to meet R 134a production requirements, both at Dahej, Gujarat.
Consolidated Performance for the quarter ended March 2017
For quarter ended March 2017, the overall top-line rose 19% to Rs 1325.81 crore. The company operating margins decreased 300 bps to 17.7%. As a result operating profits rose 2% to Rs 234.25 crore.
Cost of material consumed as a percentage of net sales (net of stock adjustment) was up 370 bps to 51% while purchase of stock in trade increased 10 bps to 1%. Employee benefit expenses fell 90 bps to 9.3% and power and fuel expenses was flat at 8.4%. Other expenses rose 80 bps to 13.8%.
Other income rose 128% to Rs 25.93 crore. Interest cost was down 29% to Rs 22.8 crore. Depreciation rose 5% to Rs 72.99 crore. PBT was up 17% to Rs 164.39 crore. The effective tax rate increased to 21.4% from 20.4% owing to which the company's net profit rose 16% at Rs 129.22 crore.
Consolidated Performance for year ended March 2017
For year ended March 2017, the overall top-line rose 5% to Rs 4821.8 crore. The company operating margins decreased 30 bps to 20.7%. As a result operating profits rose 4% to Rs 996.94 crore.
Cost of material consumed as a percentage of net sales (net of stock adjustment) was down 50 bps to 49.3% while purchase of stock in trade increased 30 bps to 1.1%. Employee benefit expenses rose 50 bps to 9% and power and fuel expenses fell 10 bps to 8.6%. Other expenses rose 100 bps to 12%.
Other income rose 63% to Rs 45.46 crore. Interest cost was down 22% to Rs 101.77 crore. Depreciation rose 3% to Rs 283.44 crore. PBT was up 12% to Rs 657.19 crore. The effective tax rate decreased to 21.7% from 26.5% owing to which the company's net profit rose 20% at Rs 514.29 crore.
Consolidated Segment Results
Technical textile business: For the quarter ended March 2017, sales increased 23% to Rs 533.18 crore representing 38% of total revenues of the company. This is primarily on account of higher volumes and improved commodity prices. PBIT increased 11% to Rs 53.57crore representing 31% of the total PBIT. The capital employed remained flat at Rs 1215.01 crore representing 38% of total capital employed.
For year ended March 2017, sales increased 6% to Rs 2010.24 crore representing 39% of the total revenues of the company. PBIT increased 40% to Rs 254.24 crore representing 33% of the total PBIT.
Chemicals and Polymers: For the quarter ended March 2017, sales increased 12% to Rs 506.28 crore representing 36% of total revenues of the company owing to significant volume growth in the refrigerants space. PBIT decreased 20% to Rs 84.06 crore representing 48% of the total PBIT. The capital employed increased 12% to Rs 2727.42 crore representing 86% of total capital employed.
For year ended March 2017, sales increased 5% to Rs 1721.4 crore representing 33% of the total revenues of the company. PBIT decreased 17% to Rs 327.32 crore representing 33% of the total PBIT.
Packaging Films Business: For the quarter ended March 2017, sales increased 26% to Rs 377.93 crore representing 27% of total revenues of the company. The newly commissioned Bi-axially Oriented Polyethylene Terephthalate (BOPET) Film and Metallizer Plants at the Greenfield Packaging Film line in the Domestic Tariff Area, Indore have witnessed vertical sales ramp up amidst tough market conditions, with all other plants operating at optimal capacity. PBIT decreased 5% to Rs 36.58 crore.
For year ended March 2017, sales increased 4% to Rs 1409.21 crore representing 27% of the total revenues of the company. PBIT increased 2% to Rs 197.04 crore representing 25% of the total PBIT.
The scrip is currently trading at Rs 1643.
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