SRF is the top gainer on the BSE since the opening bell. It opened at Rs.2638.85, up almost 2.5% and went on to hit an intraday high at Rs.2887.85, rising 12%.
The market is pretty enthused with its earnings for Q1FY20.
The consolidated revenue of the company grew by 9% (YoY) at Rs.1,828 crore. EBITDA was up 16% at Rs.295 crore and net profit rose by a good 41% at Rs.189 crore.
The chemicals business was negatively impacted due to a slower than expected recovery, post its Dahej site closure in April 2019. However, the company is optimistic and said that loss of production and revenues that hit the Chemicals Business in April and May 2019 is temporary and the Business will be able to meet its customers’ requirements on a full year basis.
The slowdown in chemical business was more than compensated by the Packaging Films business which reported an excellent quarter, showing a 50% rise in operating profit due to better margins in the BOPET segment and increased sales from the Value-Added Product portfolio.
The Technical Textiles business was impacted negatively due to lower offtake by customers, mainly the auto sector.
In Q1FY20, the Company entered into a definitive agreement for sale of its Engineering Plastics Business to DSM India Private Limited. The closing of the said transaction was achieved subsequently and the Business was divested effective August 1, 2019. The results of the said Business have been reported as discontinued operations for all reported periods. The company also declared a 70% interim dividend or Rs.7/share.
The Board approved the setting up of an integrated PTFE plant along with R22 plant as feedstock, at an aggregate cost of Rs.424 crores.