SRF Ltd. Soars Despite Pandemic Blows, Thanks to the Chemicals and Packaging Films Sector
by Chem Analyst Chemical Database PriceSRF Ltd., a multi-business entity
engaged into manufacturing of Fluorochemicals, specialty chemicals, textiles
and packaging films, has recently reported an impressive June quarter. Despite
a significant slump in its Fluorochemicals and Tyre Cord fabric sales due to
limited buying from the automotive sector, the shares of the company rose by
20% within the year, reporting a 52-weeks hike on Tuesday. The shares soared soon after the company got
approval for setting up a Chloromethanes facility in Gujarat at an investment
of INR 315 crores.
SRF also commissioned a new
specialty chemicals unit in Gujarat this week and has recently expanded its
packaging films capacity in Europe. About the June quarter, although the
company’s revenue dropped by 12.4% as compared to the previous year’s, the strongly
performing chemicals division helped it to grow its operating profit by 6.3%.
Revenue from the division registered a growth of 16.9% in Q1FY21. The company
has also registered better margins from its packaging films business with most
of the plants operating efficiently as the segment largely encompasses the
essential goods category.
Looking opportunistically at the
outshining specialty chemicals sector, SRF is confidently looking forward to
expanding its existing capacities. SRF is also looking forward to double its
chemicals manufacturing capacity by January-end 2022. Due to widened
demand-supply gap and firming feedstocks, local Fluoropolymers players
introduced upward revision in domestic PTFE (Polytetrafluoroethylene) prices in
the quarter ending June. Ex-Depot Vadodara price for PTFE General Moulding
grade was closed around USD 5720 per MT while that of PTFE Fine-Cut grade was
assessed at USD 8650 per MT by the end of the quarter.
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Created on Aug 12th 2020 10:55. Viewed 78 times.