Gurugram, June 04, 2020: SRF Limited, a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates today announced its consolidated financial results for the fourth quarter and full year ended March 31, 2020. The Company’s audited results were approved by the board of directors in a meeting held today via video conferencing.
Consolidated Q4FY20 Financials
The consolidated revenue of the Company decreased 4% from ₹1,937 crore to ₹1,858 crore in Q4FY20 when compared with Corresponding Period Last Year (CPLY). The Company’s Earnings before Interest and Tax (EBIT) increased 2% from ₹325 crore to ₹332 crore in Q4FY20 when compared with CPLY. The Company’s Profit after Tax (PAT) rose 8% from ₹179 crore to ₹194 crore in Q4FY20 when compared with CPLY.
Commenting on the results, Managing Director, Ashish Bharat Ram said, “The demand for Specialty Chemicals has been robust and the Business has contributed as per expectations. The Packaging Films Business has also done well and continues to increase its footprint across the globe. All the Business segments were adversely affected due to the lockdown announced by the Government of India in March 2020.”
Consolidated Q4FY20 Segment Results
The Chemicals Business reported an increase of 5% in its segment revenue from ₹840 crore to ₹882 crore during Q4FY20 over CPLY. The operating profit of the Chemicals Business decreased 4% from ₹166 crore to ₹159 crore in Q4FY20 over CPLY. The Specialty Chemicals Business has performed well during the quarter and in line with the expectations. The Fluorochemicals Business was adversely impacted during the quarter as the automobile sector continued to remain under severe pressure as well as due to the low prices of key refrigerants. Impact of the COVID-19 related lockdown led to certain sales being deferred.
The Packaging Films Business reported a decrease of 3% in its segment revenue from ₹623 crore to ₹601 crore during Q4FY20 when compared with CPLY largely due to a decrease in prices of key raw materials. The operating profit of the Packaging Films Business increased 24% from ₹106 crore to ₹131 crore in Q4FY20 over CPLY. Both the BOPET and BOPP segments delivered steady returns to the overall performance due to improved margins, better plant efficiencies and an increased focus on sale of Value-Added Products.
The Technical Textiles Business reported a decrease of 22% in its segment revenue from ₹404 crore to ₹317 crore during Q4FY20 over CPLY. The operating profit of the Technical Textiles Business decreased 22% from ₹48 crore to ₹37 crore in Q4FY20 over CPLY due to a challenging operating environment. The Tyre Cord Fabric segment was particularly impacted because of a double-digit de-growth in the auto sector.
The Other Businesses reported a decrease of 19% in its segment revenue from ₹71 crore to ₹58 crore in Q4FY20 when compared with CPLY. The operating profit of the Other Businesses decreased from ₹6 crore to ₹5 crore in Q4FY20 over CPLY.
Consolidated Annual Results
In FY20, SRF’s revenue increased 2% from ₹7,100 crore to ₹7,209 crore over CPLY. The Company’s EBIT increased 16% from ₹1,079 crore to ₹1,250 crore over CPLY. The Company’s PAT increased 55% from ₹592 crore to ₹916 crore over CPLY.
Innovation and Intellectual Property
As of March 31, 2020, the Company has applied for 205 patents, with fifteen patents applied during the quarter. Till date, the Company has been granted seventy patents globally.
Awards and Recognition
Arun Bharat Ram, Chairman – SRF Limited was conferred the EY Entrepreneur of the Year 2019 in the manufacturing category.
