Operational Highlights
- Revenues for the quarter stood at ₹3,345.9 as against ₹2146.4 Cr in Q3FY21, translating growth of 55.9% YoY
- EBITDA margins stood at 25.7%
Revenue breakup
- Chemical business-42.6%
- Packaging films-38.1
- Technical textile- 16.1%
- Others-3.2%
- Launched new pharma intermediate during the quarter and successfully conducted campaigns for 2-3 upcoming products.
- Achieved highest ever production in key products and are constantly enhancing capacity utilisation at newly commissioned facility
- Intent to keep debt at similar levels
- SRF share for HFC in domestic market is 60-70% and for non-HFC it will probably be in 40-50%
- The cycle for renewal of contracts begins in Q1 and Q2 next year
- The volumes have gone up substantially in the US markets
Chemical
- Segment delivered healthy performance during the period owing to incremental revenues, expansion in product portfolio and increased focus on cost of production
- Fluorochemicals Business delivered robust performance on the account of higher prices of certain key refrigerant products in critical international markets, Increased export volumes of HFC blends and chloromethanes.
- Capex in chemicals: Pharma Intermediates plant (PIP) at a cost of ₹190 crore; to strengthen SRF’s pharma capabilities. The new pharma plant is designed to make 2-3 different products.
- Expecting demand for refrigerant to stay healthy in the upcoming quarter with HST and R32 gaining momentum and likely to expand further.
- Refrigerant gas demand is higher in Q4 and expect the Q4 to perform better than last year
Packaging film business
- Business performed very well, with both the domestic and international facilities delivering robust results.
- Volume growth owing to additional capacities in Hungary and Thailand coming on stream. Margins pressure could be anticipated as few line will come onstream in coming quarters
- Higher margins witnessed in BOPP segment
Technical textile business
- Despite weak demand for nylon triangle fabrics, textile performed well driven by volumes in belting fabrics and industrial polyester yarn segment
- The polyester yarn segment achieved best ever results amidst challenging market situation
- Due to slow demand in tyre or OEM industry, nylon segment is impacted by lower volumes and high input costs affecting the margins profile for the company
- The company is constantly focusing on cost improvement and efficiency
Capex
- SRF is investing in the aluminium foil segment to create business adjacencies keeping in mind growth as a core strategy, at a new site in Jaitapur, Indore, India at an approximate cost of ₹425 crore
- The plant is expected to commercialise in next 20 months i.e. around Sep-Oct 2023
- Asset turn will range from 1.75-2X and IRR of 15-18%
- Total capex for the year is ₹1900-2000 Cr of which: ₹1600- ₹1700 Cr to be spent on ongoing projects, additionally ₹400- ₹500 Cr capex will get sanctioned during FY23. So FY23 capex will range in ₹2100- ₹2200 Cr