SRF Limited, an Indian industrial and specialty intermediates manufacturer announced its consolidated financial results for the fourth quarter and full year ended March 31, 2020.
Q4 Financials
The consolidated revenue of the Company decreased 4% to Rs. 1,858 crore ($245.9 million) in Q4FY20 as against Rs. 1,937 crore ($256.3 million) in the prior year quarter.
The Company’s Profit after Tax (PAT) rose 8% to Rs. 194 crore ($25.7 million) in Q4FY20 when compared against Rs. 179 crore ($23.7 million) in the prior year quarter.
Commenting on the results, Managing Director, Ashish Bharat Ram said, “The demand for Specialty Chemicals has been robust and the Business has contributed as per expectations. The Packaging Films Business has also done well and continues to increase its footprint across the globe. All the Business segments were adversely affected due to the lockdown announced by the Government of India in March 2020.”
Q4 Segment Results
The Chemicals Business reported an increase of 5% in its segment revenue to Rs. 882 crore ($116.7 million) during Q4FY20 as against Rs. 840 crore ($111.2 million) in the prior year quarter. The operating profit of the Chemicals Business decreased 4% to Rs. 159 crore ($21 million) in Q4FY20 as against Rs. 166 crore ($22 million) in the prior year quarter.
- The Specialty Chemicals Business has performed well during the quarter and in line with the expectations.
- The Fluorochemicals Business was adversely impacted during the quarter as the automobile sector continued to remain under severe pressure as well as due to the low prices of key refrigerants. Impact of the COVID-19 related lockdown led to certain sales being deferred.
The Packaging Films Business reported a decrease of 3% in its segment revenue to Rs. 601 crore ($79.5 million) during Q4FY20 when compared to Rs. 623 crore ($82.4 million) in the prior year quarter due to a decrease in prices of key raw materials. The operating profit of the Packaging Films Business increased 24% to Rs. 131 crore ($17.3 million) in Q4FY20 as against Rs. 106 crore ($14 million) in the prior year quarter.
- Both the BOPET and BOPP segments delivered steady returns to the overall performance due to improved margins, better plant efficiencies and an increased focus on sale of Value-Added Products.
The Technical Textiles Business reported a decrease of 22% in its segment revenue to Rs. 317 crore ($42 million) during Q4FY20 as against Rs. 404 crore ($53.5 million) in the prior quarter. The operating profit of the Technical Textiles Business decreased 22% to Rs. 37 crore ($4.9 million) in Q4FY20 as against Rs. 48 crore ($6.4 million) in the prior year quarter due to a challenging operating environment.
- The Tyre Cord Fabric segment was particularly impacted because of a double-digit de-growth in the auto sector.
The Other Businesses reported a decrease of 19% in its segment revenue to Rs. 58 crore ($7.7 million) in Q4FY20 as against Rs. 71 crore ($9.4 million) in the prior year quarter. The operating profit of the Other Businesses decreased from Rs. 6 crore ($0.8 million) to Rs. 5 crore ($0.7 million) in Q4FY20.
Full-Year Results
In FY20, SRF’s revenue increased 2% to Rs. 7,209 crore ($954 million) as against Rs. 7,100 crore ($939.6 million) in the prior year.
The Company’s EBIT increased 16% from Rs. 1,079 crore ($142.8 million) in FY19 to Rs. 1,250 crore ($165.4 million) in FY20.
The Company’s Profit after Tax increased 55% to Rs. 916 crore ($121.2 million) compared to Rs. 592 crore ($78.3 million) in the previous year.