SRF Limited, an Indian industrial and specialty intermediates manufacturer announced its consolidated financial results for the fourth quarter and full year ended March 31, 2021.
Q4 Financials
The consolidated revenue of the Company increased 40.6% to Rs 2620.61 crore ($356 million) in Q4FY21 as against Rs 1864.15 crore ($253.2 million) in the prior year quarter.
The Company’s Profit after Tax (PAT) rose 105.1% to Rs 380.92 crore ($51.7 million) in Q4FY21 when compared against Rs 185.75 crore ($25.2 million) in the prior year quarter.
Q4 Segment Results
The packaging films business reported an increase of 63% in its segment revenue to Rs 980 crore ($133.1 million) during Q4FY21 from Rs 601 crore ($81.6 million) in Q4 FY20. Volume growth, better cost efficiencies, and higher customer-centricity have resulted in the Business establishing itself as a global major in the packaging films industry.
The technical textiles business reported an increase of 26% in its segment revenue to Rs 401 crore ($54.5 million) in Q4FY21 from Rs 317 crore ($43.1 million) in Q4 FY20. Fast recovery in the tyre industry and a healthy contribution from the belting fabrics segment augured well for the technical textiles business.
The other businesses reported an increase of 35% in its segment revenue to Rs 78 crore ($10.6 million) in Q4FY21 from Rs 58 crore ($7.9 million) in Q4 FY20. Both the coated and laminated fabrics business performed very well in a difficult external environment.
During the quarter, the specialty chemicals business performed exceptionally well owing to a strong demand from the overseas markets and enhanced volumes of certain key products supplied to our major customers in Europe.
The fluorochemicals business is witnessing an impact of the micro lockdowns and certain restrictions imposed by the local authorities as a part of COVID-19 response measures which, though currently not significant, may have an adverse impact on business performance in the short term.
Full-Year Results
In FY20, SRF’s revenue increased 16.5% to Rs 8454.53 crore ($1.15 billion) as against Rs 7258.46 crore ($986 million) in the prior year.
The Company’s Profit after Tax increased 17.6% to Rs 1197.94 crore ($162.7 million) compared to Rs 1019.09 crore ($138.4 million) in the previous year.
Commenting on the results, managing director, Ashish Bharat Ram, said: “The Company has had an excellent quarter all around, with the specialty chemicals and the packaging films businesses performing exceedingly well. While I remain reasonably optimistic of the year ahead, we are seeing some disruptions at our workplace emanating from the second wave of the COVID-19 outbreak.”
The company’s board has approved the setting up of the fourth multi-purpose plant (MPP) at Dahej, India at an approximate cost of Rs 375 crore ($50.9 million). A need was being felt to augment the existing MPPs, to be able to capitalize on emerging business opportunities to ensure robust pipeline of new products in the future.