SRF Ltd., a multi-business entity engaged in the manufacture of chemical-based industrial intermediates, reported 82 per cent increase in its consolidated net profit after tax (PAT) at Rs. 109 crores for the quarter ended March 31, 2016, as against Rs. 60 crores posted in the year ago period. The company’s consolidated EBIDTA at Rs. 234 crores for the fourth quarter of 2015-16 also increased by 43 per cent over the corresponding period last year (CPLY). The consolidated net sales grew by three per cent at Rs. 1,093 crores during the quarter.
SRF posted 40 per cent growth in PAT at Rs. 423 crores for the fiscal ended March 31, 2016, even as the net sales grew only marginally from Rs. 4,492 crores in 2014-15 to Rs. 4,531 crores in 2015-16. The consolidated EBIDTA also improved by 26 per cent from Rs. 791 crores to Rs. 999 crores.
Reflecting on the results, Ashish Bharat Ram, SRF Managing Director, said: “In spite of a weak economic environment globally, it has been an excellent year for the company. Our stated objective of transforming SRF into a technology & innovation-oriented company across all business segments is paying dividends. The turnaround of our global operations has also vindicated our strategic intent.”
With a 23 per cent growth in the segment revenue at Rs. 1,555 crores, the Chemicals and Polymers Business of the company reported 31 per cent increase in its operating profit from Rs. 298 crores to Rs. 389 crores during April-March 2015-16 over CPLY. Riding on the improved performance of both its overseas units, the Packaging Films Business reported more than 200 per cent growth in its operating profit from Rs. 64 crores in 2014-15 to Rs. 193 crores during the same period. The segment revenue of Technical Textiles Business declined 14 per cent at Rs. 1,746 crores during the year due to low crude oil prices, coupled with the disruption of production in one of its major manufacturing units at Manali during the Chennai floods in December 2015. The operating profit for the Technical Textiles Business also declined by 12 per cent from Rs. 196 crores to Rs. 173 crores during the same period.
The consolidated net debt to equity ratio for SRF improved from 0.99 as on March 31, 2015, to 0.74 times as on March 31, 2016, and the consolidated earnings per share (EPS) of the company improved to Rs. 73.66 in 2015-16 as against Rs. 52.74 CPLY.
The Board approved a capex proposal for setting up a BOPP film line and a metallizer in the existing Domestic Tariff Area (DTA) campus at Indore at a total investment of around Rs. 269 crores. With a maiden domestic entry into the space of BOPP films, SRF aims to emerge as a ‘one-stop shop’ for its customers mainly in India. The proposed project will be the second BOPP unit for SRF. The first one was set up at Durban in South Africa in 2012. The project is scheduled to be commissioned in the last quarter of 2017-18.
In August 2015 and February 2016, the SRF Board had approved two interim dividends of 50 per cent each, aggregating to a total of Rs. 10 per share. At its latest meeting, the Board did not recommend any final dividend for 2015-16.