SRF shares rose 8% in intraday trade on Friday to a record high of Rs 8,535.95 on the BSE, gaining 11% in the previous two trading days, as the firm announced a solid operational performance for the quarter ending June 2021. (Q1FY22). A significant rise in stock prices today lifted the company’s market capitalization (m-cap) above Rs 50,000 crore for the first time.
According to BSE statistics, the stock was up 7% at Rs 8,502 at 09:58 a.m., with a market capitalization of Rs 50,364 crore.
In Q1 FY22, SRF’s consolidated net profit more than quadrupled to Rs 395.3 crore. The company’s sales increased by 75% year on year (YoY) to Rs 2,699 crore. The Ebitda margin (earnings before interest, taxes, depreciation, and amortisation) increased by 50 basis points (bps) to 24.6.
The company said during the quarter, the specialty chemicals business which accounts for 42 per cent of total revenue, performed well owing to higher sales from exports and domestic markets. The fluorochemicals business witnessed higher sales volumes in the refrigerants and the blends segments, with better sales realisations, especially from the export markets. In Q1FY22, the technical textiles business reported operating profit of Rs 134 crore as against a loss of Rs 14 crore in Q1 FY21.
SRF’s board of directors authorised a Rs 550 crore project for integrated expansion of fluorocarbon-based refrigerant production in Dahej. The same will be finished in twenty-four months. According to Motilal Oswal Financial Services, earnings momentum would likely decelerate owing to margin contraction in the packaging films industry.