SRF Ltd

SRF posted very good set of numbers posted by the company for Q2FY15. Boosted by higher sales realization and cost rationalization, it ended the quarter with a 60% (YoY) jump in net profit at Rs.77 crore.  Net revenue of the company rose 9% at Rs.917 crore while other operating income rose 175%. Operating costs, as a percentage of net revenue came down from 90% to 86%. The market is celebrating two pointers – EBITDA margin rose by over 400 bps to 20.01% from 15.8% and its net profit for H1FY15 came in at Rs.176 crore, which is 81% of FY14 net profit. With two more quarters to go, clearly, SRF is headed to end current fiscal on a high note.

What really helped the company bounce back was its strategic shift to the specialty chemical business which recorded a 146% jump in its EBIT, from Rs.35 crore to Rs.86 crore. EBIT from technical textile business rose 11% and packaging films grew 14%.