SRF Ltd

SRF Ltd had hit a life time high on the back of its very good performance for Q1FY17, mainly on account of a 2% (YoY) drop in total operating costs and interest outgo too coming down 18%. Despite consolidated net revenue coming in flat or 0.2% lower at Rs.1195 crore, the company ended the quarter with a 27% rise in net profit at Rs.144 crore. Raw material costs were down 7% while power and fuel costs dropped 1%. EBITDA was up 8% at Rs.290 crore and margins improved from 21.9% to 23.8%.

The company has also approved setting up of a chloromethanes plant at Dahej, Gujarat, at an estimated cost of Rs.165 crore. This is to be funded through a mix of debt and internal accruals. SRF’s equity is pretty high at Rs.57.42 crore and EPS is at Rs.25.11 (FV of Rs.10).