SRF is showing a lot of activity today. Volume has jumped up over 5 times, going up almost 2.5% to Rs.2523. Its not too far from its 52-week high of Rs.2614.
Two good news. Firstly, it has agreed to sell its engineering plastics business to the Indian unit of Dutch multinational Royal DSM for Rs.320 crore. The deal is likely to be concluded in 6 months. The company has stated that the sale will strengthen the company's balance sheet and allow it to focus its resources on developing newer technologies for the chemicals business.
The engineering plastics division's main operations are based in Pantnagar, Uttarakhand. The business earned revenue of Rs 209 crore for 2017-18, representing 4.5% of SRF’s turnover.
Second good news is its performance for Q4FY19. Its net profit shot up 54% (YoY) at Rs.191 crore on a 28.5% jump in revenue at Rs.2072 crore. Chemical business grew 66%, contributing Rs.840 crore to revenue; technical textile business revenue grew 4% at Rs.482 crore and packaging unit revenue rose 18% at Rs.623 crore.