Aided by successful stabilization of both the overseas greenfield packaging film units in the first full year of their operation and overall improvement in performance across businesses, SRF Ltd., a multi-business entity engaged in the manufacture of chemical-based industrial intermediates, reported 86 per cent increase in consolidated net profit after tax at Rs. 303 crores for the fiscal ended March 31, 2015.
The company’s consolidated net sales also grew by 13 per cent to Rs. 4,492 crores as against Rs. 3,993 crores recorded in the previous year despite softening of crude oil prices which adversely impacted the realizations for most of SRF products. The consolidated EBIDTA of the company also improved by 45 per cent from Rs. 546 crores during 2013-14 to Rs. 791 crores during 2014-15.
SRF Ltd. has reported a 11 per cent rise in its standalone net profit after tax at Rs. 59 crores for the quarter ended March 31, 2015, as against Rs. 53 crores posted in the year ago period. EBIDTA at Rs. 141 crores for the fourth quarter also increased by 25 per cent over the corresponding period last year. Profits of the company improved despite a marginal decline of four per cent in net sales at Rs. 847 crores during the period mainly due to a sharp decline in crude oil prices.
The consolidated net debt to equity ratio for the company improved from 1.01 as on March 31, 2014, to 0.99 times as on March 31, 2015, and the consolidated earnings per share (EPS) increased by 86 per cent from the previous year figure of Rs. 28.29 to Rs. 52.74 for 2014-15.
The Board approved two separate capex proposals, one for setting up a dedicated plant at Dahej to manufacture the existing range of specialty chemicals being produced at its Bhiwadi plant to cater to the increasing demand from the pharma sector and the other for improving the product development capability in engineering plastics, at a total investment of around Rs. 54 crores.
In August 2014 and in February 2015, the SRF Board had approved two interim dividends of 50 per cent each, aggregating to a total of Rs. 10 per share. At its meeting in May, the Board did not recommend any final dividend for 2014-15.
Among other things, SRF acquired the global 134a pharma business from DuPont. It completed the first order for supply of HFC 134a cans to Walmart in the US and established its leadership position in Thailand for BOPET films in the first full year of operation of its Thai plant.
Reflecting on the results, Mr. Ashish Bharat Ram, Managing Director, SRF, said: “I am happy with the overall performance of the company which has been in sync with our plan. In spite of an adverse impact of raw material prices in the second half of the year we were able to increase our profitability. Our investments in the chemicals and polyester films businesses are paying off and we remain confident of our ability to reap the benefits of an upturn in the economy.”