SRF Ltd., a multi-business entity engaged in the manufacture of chemical-based industrial intermediates, reported a net profit after tax (PAT) of Rs. 48 crores during the second quarter of 2013-14, sequentially an increase of nine per cent over Rs. 44 crores recorded during the previous quarter ended June 2013. The current economic slowdown, coupled with forex loss against forex gain of last year, however, caused 37 per cent decline in the company’s PAT during the second quarter of the current financial year over the corresponding period last year (CPLY) when it had posted a PAT of Rs. 75 crores.
The company also absorbed a loss of Rs. 6.54 crores during the period against a gain of Rs. 41.54 crores during CPLY on account of foreign exchange fluctuations. Its revenue, however, increased by five per cent from Rs. 804 crores to Rs. 844 crores.
The company has approved an interim dividend at the rate of 30 per cent amounting to Rs. 3 per share.
Reflecting on the financial performance of the company, Mr. Ashish Bharat Ram, Managing Director, SRF Ltd., commented: “In a weak economic environment, the company has managed to do well. Operations across the board performed better than expectations. Having said that, the economic conditions remain extremely challenging with low visibility.”
While the Technical Textiles business grew by four per cent from Rs. 435 crores to Rs. 453 crores, its operating profit increased by 43 per cent from Rs. 33 crores to 47 crores during the quarter ended September 2013 over CPLY. The Packaging Films business recorded a growth of 12 per cent in its segment revenue from Rs. 164 crores to Rs. 184 crores and a growth of 145 per cent in its operating profit from Rs. 6 crores to Rs. 14 crores during the second quarter.
The Chemicals & Polymers business recorded a marginal increase in revenue from Rs. 206 crores to Rs. 208 crores. The operating profit of the business, however, declined by 17 per cent from Rs. 42 crores to Rs. 35 crores during July-September 2013.
In the first six months of 2013-14, SRF Ltd.’s revenue at Rs. 1,669 crores increased by three per cent over Rs. 1,616 crores recorded during the same period last year. Net profit after tax declined by six per cent at Rs. 92 crores against Rs. 97 crores posted during CPLY. Profit from ordinary activities after finance costs but before exchange currency fluctuations and exceptional items, however, increased by 13 per cent from Rs. 120 crores to Rs. 136 crores during the same period over CPLY.