Maintaining its sustained growth momentum, SRF Ltd., a multi-business entity engaged in the manufacture of chemical-based industrial intermediates, reported a 60 per cent jump in PAT from Rs. 48 crores recorded in the second quarter of the last financial year to Rs. 77 crores in the second quarter of the current financial year. Aided by better sales realisations and gradual strategic shift in product-mix towards specialty chemicals, the company’s revenue also increased by 10 per cent from Rs. 844 crores to Rs. 928 crores.
Commenting on its financial performance, Mr. Ashish Bharat Ram, Managing Director, SRF Ltd., said: “The overall operations were satisfactory. The company’s strategy of growing the Chemicals Business is paying dividends. Our traditional businesses should pick up once the economy rebounds.”
The surge in the company’s profitability was driven by all the three businesses. Leading the tally was the Chemicals & Polymers business which recorded 146 per cent growth in its operating profit from Rs. 35 crores to Rs. 86 crores on 54 per cent increase in the segment revenue from Rs. 208 crores to Rs. 320 crores during the second quarter ended September 2014 over CPLY. Similarly, the operating profit of the Technical Textiles business grew 11 per cent from Rs. 47 crores to Rs. 52 crores, and the operating profit of the Packaging Films business grew 14 per cent from Rs. 14 crores to Rs. 16 crores during the period.
The segment revenue for both the Technical Textiles business and the Packaging Films business, however, fell marginally by four per cent each during the period. While the segment revenue for the Technical Textiles business dropped from Rs. 453 crores to Rs. 435 crores, that of the Packaging Films business declined from Rs. 184 crores to Rs. 176 crores during July-September 2014.
In the first six months of 2014-15, the company’s revenue at Rs. 1,870 crores increased by 12 per cent over Rs. 1,669 crores recorded during the same period last year. PAT grew by 91 per cent to Rs. 176 crores during April-September 2014 as against Rs. 92 crores posted during CPLY.
The company’s profit from ordinary activities after finance costs but before exchange currency fluctuation and exceptional items increased by 77 per cent from Rs. 136 crores to Rs. 241 crores during the same period over CPLY.