SRF posted Q1FY23 numbersSRF - 2355 Change: 3.45 (0.15 %)
News: SRF reported top-line growth of 44% YoY to 3894.7 crores against our expectations of 3583.9 crores led by strong performance from all segments. The revenue from chemical was up by 55% YoY to 1722.4 crores, while the same from technical textile increased by 16% YoY to 571 crores. The revenue from packaging film and other segments stood at 1496 crores (up 44%) and 105.6 crores (up 97% YoY) respectively. OPM for the quarter expanded by 60bps YoY to 25.5% resulting into EBITDA growth of 48% YoY to 995 crores against our estimate of 945.1 crores. The expansion in operational performance is on account of better gross margins (52.3% v/s 50.7% in Q1FY22). PAT increased by 54% YoY to Rs 608 crores against our estimates of 590.1 crores.
Views: Focused capex towards speciality chemicals keeping in mind higher consumption of fluoro-compounds across agrochemical and pharma besides general themes of vertical integration and higher operating leverage Maiden foray into polytetrafluoroethylene (PTFE) through backward integration of R22 to diversify business risk, to a certain extent. Prudent and measured strategy to increase presence across other fluoropolymers is likely to enhance revenue visibility over the medium to long run.