SRF Ltd has hit a life time high today at Rs.1688, up 8% and not surprisingly, it is the top gainer on the bourses right since the opening bell.

This surge was thanks to 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).