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Fibres/​Yarns/​Fabrics

SRF reports profit growth in first quarter 2016

Impacted mainly by the subdued commodity prices, the Technical Textiles Business recorded a decline of 6% in its segment revenue.

10th August 2016

Innovation in Textiles
 |  Gurgaon

Industrial

The surge in SRF’s profitability can be attributed to robust demand, operational efficiency, combined with renewed focus on cost improvement and market penetration especially in the international market, the company reports.

“We have had an excellent start to the year. All our businesses performed exceptionally well. However, the global economy remains fragile and hence the outlook has an element of uncertainty to it. We continue to invest regularly as per our strategic intent,” commented Ashish Bharat Ram, Managing Director, SRF Limited.

Consolidated segment results

Net sales of SRF consolidated during the first quarter of 2016-17, however, declined only marginally to Rs. 1195 crore, mainly due to the consistent subdued commodity prices, the company reports.

The Chemicals & Polymers Business reported a 11% increase in its segment revenue from Rs. 378 crore to Rs. 421 crore during the first three months of 2016-17, compared to the same period in 2015. Operating profit of the Chemicals & Polymers Business also increased by around 18%.

Impacted mainly by the subdued commodity prices, the Technical Textiles Business recorded a decline of 6% in its segment revenue. The operating profit of the Technical Textiles Business, however, increased by 19%. While the Packaging Films Business registered a decline of 5% in its segment revenue, it maintained its operating profit at Rs. 60 crore during the first quarter of 2016-17.

New plants

SRF Board has also announced the approval of the two proposals – to set up a Multi-Purpose Plant for specialty chemicals and a Chloromethane (CMS) plant in its Chemical Complex at Dahej in Gujarat, in tune with the company’s strategic intent of expanding its chemicals business.

The new Multi-Purpose plant is expected to further augment SRF’s capability to develop and commercialise new molecules for agrochemicals and pharmaceutical sectors. The new unit will enable SRF to cater to wider range of specialty products for emerging needs of the sector.

The new Chloromethane plant is expected to enable the company to meet the growing needs of its Pharma customers for Methylene dichloride (MDC) and to strengthen its foothold in the Indian market, which remains a net importer of Methylene dichloride (MDC).

SRF

Established in 1970, SRF has grown into a multi-business entity with operations in three countries. With R&D capabilities, especially in the niche domain of chemicals, SRF strives to stay ahead in business through innovations in operations and product development.

The company is a domestic leader in refrigerants and claims to be the only manufacturer of indigenously developed refrigerant, HFC 134a, in India. The company also enjoys a leading position in technical textiles. Besides, the company has a significant presence among the key domestic manufacturers of packaging films and specialty chemicals.

www.srf.com

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