SRF shines on capex plan and robust earnings

SRF Limited today informed the bourses that the board of directors has approved project for setting up of an integrated facility for development of PTFE at an estimated cost of Rs. 424 crore.

This project will be financed by a mix of debt and internal accruals. The major purpose of this expansion is to enter into fluoropolymers segment of fluorocarbons to derive cost advantage from the integrated value chain.

The company has also come up with Q1FY20 results. The consolidated revenue of the company grew by 9% from Rs. 1,676 crores to Rs. 1,828 crore in Q1FY20 when compared with corresponding period last year. The company’s earnings before interest and tax (EBIT) increased by 16% from Rs. 254 crore to Rs. 295 crore in Q1FY20 when compared with corresponding period last year. The company’s profit after tax (PAT) rose 41% from Rs. 134 crore to Rs. 189 crore in Q1FY20 when compared with corresponding period last year.

With response to this development, the stock of SRF on Tuesday spiked nearly 14% and made an intra-day high of Rs. 2960 on the BSE.