SRF Limited reported a growth of 23% in its net profit after tax (PAT) at Rs. 136 crore for the fourth quarter of 2010-11. SRF's net sales during Q4 improved by 25% to Rs. 846 crore as against Rs. 676 crore over the corresponding period last year (
SRF Limited reported a growth of 23% in its net
profit after tax (PAT) at Rs. 136 crore for the fourth quarter of 2010-11. SRF?s
net sales during Q4 improved by 25% to Rs. 846 crore as against Rs. 676 crore
over the corresponding period last year (CPLY). The topline growth was
attributable to higher sales mainly due to full year impact of doubling of
capacity for BOPET film line and commissioning of new units such as Polyester
Industrial Yarn and Laminated Fabrics. The company?s audited results were taken
on record by the Board of Directors this afternoon.
Reflecting on the results, Ashish Bharat Ram, managing director, SRF,
said, ?It has been a good year for the company as a whole. The Packaging
Films Business has had an outstanding year but going forward the margins in this
business are likely to come under pressure due to changed business environment.
We are hopeful that our other businesses will help us bridge the gap.?
Annual Financials
Riding on the overall improvement in its business performance, SRF consolidated
recorded 49% growth in the full year PAT at Rs. 484 crore for the fiscal ended
on March 2011. The annual profit of SRF consolidated included a gain of around
Rs. 33 crore on account of gain from exchange currency fluctuation during
2010-11.
The net sales of SRF consolidated grew by 36%, from Rs. 2499 crore to Rs. 3391
crore during 2010-11. In particular, the company?s Packaging Film Business
recorded 159% growth in segment revenue at Rs. 871 crore during the period. The
segment revenue of the company?s Chemicals and Polymers Business increased by
14% at Rs. 747 crore and SRF?s consolidated Technical Textiles Business recorded
a 22% growth in segment revenue at Rs. 1861 crore during the year.
Financial Ratios
The improved financial performance of SRF standalone resulted in an improvement
in multiple performance parameters. The Debt-Equity ratio improved from 0.78 to
0.51 during the year and the Earning Per Share (EPS) of the company improved
from previous year?s figure of Rs. 51.14 to Rs. 79.90 per share for 2010-11. The
Net Debt to Equity as on 31 March 2011 has improved to 0.39 times as against
0.72 times as on 31 March 2010.
Dividend
Earlier, SRF had paid two interim dividends, each of Rs. 7 per share aggregating
to Rs. 14 per share during the year. In today?s meeting, the board recommended
NIL final dividend for the year 2010-11.
Buyback
Following the Board approval on 26th February 2011, SRF commenced buyback of the
fully paid up equity shares from the open market through the stock exchanges on
6th April 2011. An aggregate of 58,851 equity shares at an average market price
of Rs. 334.38 per share were bought back absorbing a total amount of Rs. 1.97
crore till 6th May 2011.
Capexes
The SRF Board had earlier during the year approved several projects to be set up
at a total investment of around Rs. 1500 crore. Some of the important projects
approved during the year included setting up of the company?s second HFC-134a
plant, Flexible Multipurpose Plant, Mutipurpose Chemical Plant, Intermediate
Speciality Plant and Captive Power Plant at the Dahej Chemical Complex in
Gujarat and Capacity Enhancement of Coated Fabrics at a new plant in
Gummidipoondi. The Board had also approved setting up of two overseas plants for
manufacturing Biaxially Oriented Polypropylene (BOPP) films and Biaxially
Oriented Poly Ethylene Terephthalate (BOPET) films.
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