Press release from Business Wire India
Source: SRF Limited
Saturday, November 12, 2011 01:54 PM IST (08:24 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Chemicals, Financial Analyst, Stock exchanges
SRF Posts Rs. 107 crore PAT in Q2, Revenue at Rs. 914 crore
Gurgaon, Haryana, India, Saturday, November 12, 2011 -- (Business Wire India) -- -- Q2 revenue at Rs. 914 crore, a growth of 22%
-- Q2 PAT, a reduction of Rs. 14 crore
-- Exchange Currency Fluctuation, a loss of Rs. 34 crore
-- Q2 PBT at Rs. 162 crore, a reduction of 6%
-- H1 net profit after tax (PAT) at Rs. 190 crore, a growth of 8%
-- H1 revenue at Rs. 1753 crore, a growth of 28%
-- Board approves interim dividend of Rs.7 per share
SRF Limited, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, posted a net profit after tax (PAT) of Rs. 107 crore for the quarter ended September 2011. Impacted by rupee depreciation, the company's PAT declined by Rs. 14 crore during the quarter over the corresponding period last year (CPLY), registering 12% reduction. The Exchange Currency Fluctuation alone had a negative impact of Rs. 34 crore to the company during the quarter. During the same period, SRF's Profit before Interest, Exchange Currency Fluctuations and Tax improved by 22%, from Rs. 177 crore to Rs. 217 crore.
SRF's revenue increased from Rs. 748 crore to Rs. 914 crore, recording a growth of 22% during the quarter. The unaudited financial results of SRF were taken on record by SRF's Board in a meeting held today. The Board also approved an interim dividend at the rate of 70% amounting to Rs. 7 per share.
Reflecting on the financial performance of the company, Mr. Ashish Bharat Ram, Managing Director, SRF Limited, commented: "The Chemicals Business has ensured a strong performance by the company. However, the effects of the slowdown are starting to show and we expect both volumes and margins to be adversely affected in the near future."
The operating profit of the Chemicals & Polymers Business grew by 178% at Rs. 188 crore over the segment revenue of Rs. 334 crore that grew by 85% during the period over CPLY. In the Technical Textiles Business, while the segment revenue improved by 18% to Rs. 420 crore, the operating profit decreased by 12% to Rs. 30 crore during the period. The operating profit of the Packaging Films Business decreased by 88% at Rs. 11 crore mainly due to the prevailing adverse demand-supply situation. The segment revenue of the Packaging Films Business declined by 24% at Rs. 162 crore.
For the first six months of the current financial year, SRF posted 8% growth in its net profit after tax (PAT) at Rs. 190 crore over CPLY. The company's revenue at Rs. 1753 crore achieved a growth of 28% over Rs. 1367 crore recorded during the same period last year. The company's PBT at Rs. 276 crore increased by 9% during the first half of the current financial year over CPLY.
Buy-Back of Shares
SRF bought back an aggregate of 13,65,687 equity shares at an average price of Rs. 303.86 per share absorbing a total amount of Rs. 41.50 crores (approx) till 9th November 2011. The company's buy-back that commenced on 6th April 2011 may remain open up to 25th February 2012. As per approval of the Board of Directors, SRF may buy-back shares to a maximum extent of Rs. 90 crore at a price not exceeding Rs. 380 per share.
Earlier in September 2011, the company commissioned and capitalised phase I of the project for Enhancement of Capacity of Coated Fabric by 72 lakhs square metre per annum at Gummidipoondi. In the second phase of the project, the company would add balance annual capacity of 98 lakhs square metre by September next year. Currently, several projects worth Rs. 1400 crore are in various stages of completion across all businesses of SRF.
Established in 1973, SRF as a group has today grown into a global entity with operations in 4 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 Fluorospecialities. 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 Application Prize for its tyre cord business, SRF continues to redefine its work and corporate culture with the TQM as its management way.
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Mukund Trivedy, Head of Corporate Communications, SRF Limited, +91 9871709177, firstname.lastname@example.org
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