SRF Ltd., a multi-business entity engaged in the manufacture of chemical-based industrial intermediates, posted a profit after tax (PAT) of Rs. 72.62 crores in the third quarter ended December 31, 2014, as against Rs. 72.06 crores over the corresponding period last year (CPLY).
Net sales of SRF in the third quarter increased marginally to Rs. 870.22 crores from Rs. 859.44 crores in spite of reduction in commodity prices. Profit before tax declined 4.9 per cent from Rs. 91.88 crores to Rs. 87.34 crores due to increased depreciation and interest expense.
“The overall operations are as per expectations. While some adverse impact of the sharp fall in commodity prices was felt in the current quarter, a residual impact will be experienced in the next quarter. The company continues its journey on the stated strategic path by making focused investments”.
While the Technical Textiles business recorded 6.2 per cent decrease in its segment revenue from Rs. 446.16 crores to Rs. 418.4 crores, operating profit increased 7.5 per cent from Rs. 38.53 crores to Rs. 41.44 crores.
The Chemicals & Polymers business registered 13.57 per cent increase, from Rs. 269.96 crores to Rs. 306.60 crores. Operating profit of the business also grew by 7.16 per cent from Rs. 69.64 crores to Rs. 74.63 crores.
The Packaging Films business reported an operating profit of Rs. 6.94 crores as compared to a loss of Rs. 7 lakhs during the corresponding period last year (CPLY). Revenue of the Packaging Films business rose 7.5 per cent from Rs. 147.69 crores to Rs. 158.77 crores.
The Board has approved capex proposals worth about Rs. 25 crores for enhancing the R&D capability of the chemical business for a faster turnaround. A capex of Rs. 66 crores for modernization of the technical textile plant at Gwalior has also been approved.
The Board has further approved an interim dividend at the rate of 50 per cent amounting to Rs. 5 per share.