SRF Limited, a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates, announced its consolidated financial results for the third quarter and nine months ended December 31, 2021.

Consolidated Q3FY22 Financials

The consolidated revenue of the company grew 56% from Rs. 2,146 crore to Rs.3,346 crore in Q3FY22 when compared with Corresponding Period Last Year (CPLY). The company’s Earnings before Interest and Tax (EBIT) increased 66% from Rs.479 crore to Rs.796 crore in Q3FY22 when compared with CPLY. The company’s Profit after Tax (PAT) increased 56% from Rs.324 crore to Rs.506 crore in Q3FY22 when compared with CPLY.

Commenting on the results, Managing Director, Ashish Bharat Ram said, “It’s been an outstanding quarter for the company. Except for the Technical Textiles segment, which was impacted by soft market conditions, every other segment performed exceedingly well. We remain cautiously optimistic of our performance going forward.”

Consolidated Q3FY22 Segment Results

The Chemicals Business reported an increase of 58% in its segment revenue from Rs.906 crore to Rs. 1,428 crore during Q3FY22 over CPLY. The operating profit of the chemicals business increased 121% from Rs.190 crore to Rs.419 crore in Q3FY22 over CPLY. During the quarter, the fluorochemicals business performed exceedingly well on account of higher prices of certain key refrigerant products in critical international markets and increased export volumes in HFC blends. In addition, healthy contribution from the chloromethanes segment augmented the overall results.

With an expanded product portfolio, the specialty chemicals business had a healthy quarter. This was largely on account of strong demand from the overseas markets, higher capacity utilization of dedicated/multipurpose facilities and significant cost-savings across all product streams. Several new plants commissioned during the year contributed to the overall performance.

The packaging films business reported an increase of 59% in its segment revenue from Rs.802 crore to Rs. 1,276 crore during Q3FY22 when compared with CPLY. The operating profit of the packaging films business increased 20% from Rs.212 crore to Rs.254 crore in Q3FY22 over CPLY. The packaging films business performed very well during the quarter with both the domestic and international facilities delivering robust results. Scale, operating leverage, and a strong demand from global, marquee customers on the back of PFB’s ‘Easy to Do Business With’ philosophy have helped establish SRF as a renowned player in the global packaging industry.

The technical textiles business reported an increase of 47% in its segment revenue from Rs.367 crore to Rs.538 crore during Q3FY22 over CPLY. The operating profit of the technical textiles business  increased 67% from Rs.68 crore to Rs.114 crore in Q3FY22 over CPLY. The technical textiles business  witnessed healthy performance despite weak demand for nylon tyre cord fabrics during the quarter. Overall, the business continues to focus on operating efficiencies and running plants optimally.

The other businesses reported an increase of 45% in its segment revenue from Rs.74 crore to Rs.107 crore in Q3FY22 when compared with CPLY. The operating profit of the Other Businesses increased 4% from Rs.8 crore to Rs.9 crore in Q3FY22 over CPLY. Both the coated and laminated fabrics business performed very well in a difficult external environment.

9M FY22 Financials

In the 9M FY22 period, SRF’s revenue increased 53% from Rs. 5,792 crore to Rs.8,884 crore over CPLY. The company’s EBIT increased 56% from Rs. 1,253 crore to Rs. 1,959 crore over CPLY. The company’s PAT increased 57% from Rs.817 crore to Rs. 1,283 crore over CPLY.

Capex

Packaging Films Business

The Board has approved a project to set up an Aluminium Foil manufacturing facility at a new site in Jaitapur, Indore, India at a projected cost of Rs.425 crore to meet the growing demand for Aluminium Foil, which is mainly driven by packaging requirement for food products in the domestic and exports market. The project is expected to be completed in twenty months.

Chemicals Business

The Board has approved the setting up of a new pharma intermediates plant  at its chemical complex in Dahej, India at an estimated cost of Rs.190 crore to further augment its pharma manufacturing capability and become future ready to tap into new and upcoming business opportunities in the pharma vertical.

The Board has also approved the setting up of a dedicated facility to produce 300 MT per year of a key agrochemical product at its chemical complex in Dahej, India at an estimated cost of Rs.61 crore.

Innovation and Intellectual Property

As of December 31, 2021, the company has applied for 351 patents, with nineteen patents applied during the quarter. Till date, the company has been granted one hundred and six patents globally.