Tuesday, October 26, 2021

SRF Q2FY22 Result | Outlook

  


SRF Ltd reported 35.14% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs2,838.97cr. The revenues were higher by 5.17% on a sequential basis compared to Rs2,699.40cr revenues in the Jun-21 quarter.


In terms of top line revenues, the technical textiles vertical revenues grew 68.1% at Rs558cr while the chemicals business revenues grew 27.9% at Rs1,126cr. The packaging films business also saw revenue up by 28.6% at Rs1,072cr. DSCR and interest coverage has more than doubled on yoy basis.


The consolidated Profit after tax (PAT) for the Sep-21 quarter was up 21.34% at Rs382.45cr. Profits were down -3.24% compared to the profits in the sequential quarter. Like most companies in the chemicals business,


SRF also saw a sharp spike in raw material and power costs. While EBIT of technical textiles and the chemicals business was higher yoy, the packaging films vertical saw EBIT falling by -26.8% yoy at Rs180cr. Net margins at 13.47% was lower than 15% on a yoy basis and also lower than NPM of 14.64% in Jun-21 quarter.


Impact

Stock entered into mid term correction and consolidation and can test 1816 in downside which is also short term support level.




Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.


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