SRF did very well in the morning trades; the immediate reaction to its earnings. The stock price which had closed at Rs.1966.35, went up to Rs.2037 but profit booking at the higher levels ha snow brought down the price to Rs.1985, just about holding on to the green.
The company did well for Q3FY19. The consolidated revenue of the company grew by 41% (YoY) to Rs.1,964 crore. Earnings before Interest and Tax (EBIT) increased 15% from Rs.225 crore and net profit was up 26% at Rs.131 crore.
The Technical Textiles Business reported an increase of 21% in its segment revenue while operating profit rose 7% on the back of increased sales from the value-added products portfolio and operational cost savings. The Chemicals Business reported an increase of 46% in topline and operating profit was up 5%. Packaging firm did the best with a 63% rise in revenue and 40% increase in profit on account of increased capacities.
The Board approved a project to debottleneck certain specialty chemical plants to further increase the production capacity at Dahej at an estimated cost of Rs.140 crore. The Board also approved a proposal to install additional spinning and textile capacity at the Technical Textiles Plants in Manali and Gwalior at an estimated cost of Rs.80 crore, which will be incurred over a period of three years.
The Board also approved a second interim dividend at the rate of 60 percent amounting to Rs.6 per share. Earlier on August 7, 2018, the board had approved the first interim dividend at the rate of Rs.6 per share.