Srf Limited · NSE:SRF
Srf — Q2 & H1 FY19 Earnings Presentation
33 slides from Srf's earnings presentation, Nov 2, 2018
Slide 1: Cover letter to stock exchanges
The BSE Limited BSE's Corporate Relationship National Stock Exchange of India Limited Department "Exchange Plaza" 1st Floor, New Trading Ring, Bandra-Kurla Complex Rotunda Building, P.J. Towers, Bandra (E) Dalai Street, Fort, Mumbai 400 051 Mumbai 400 001 SRF/SEC-D/16 02 11 2018 Dear Sir, Presentati
Slide 2: SRF Limited Q2 & H1 FY19 Results Presentation
SRF Limited We always find a better way November 02, 2018 Q2 & H1 FY19 Results Presentation
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 4: Contents
Contents Q2 & H1 FY19 Results Overview 04 Q2 & H1 FY19 Segmental Performance 09 Company Overview 24 Outlook 27 3
Slide 5: Results Overview
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Slide 6: Results Overview - Financial Overview
Results Overview - Financial Overview Abridged Statement of Profit & Loss (Rs. crore) Q2 FY19 Q2 FY18 % Y-o-Y H1 FY 19 H1 FY 18 % Y-o-Y Gross Operating Revenue 1,915.4 1,286.4 48.9% 3,656.6 2,675.5 36.7% EBIDTA 347.3 218.8 58.7% 677.5 436.9 55.1% EBIDTA Margin (%) 18.1% 17.0% 18.5% 16.3% Depreciatio
Slide 7: Results Overview - Key Financial Ratios
Results Overview - Financial Overview Key Financial Ratios Particulars FY13 FY14 FY15 FY16 FY17 FY18 EBITDA margin 17.59% 13.59% 20.43% 22.13% 21.42% 17.69% PAT Margin 6.69% 4.04% 8.78% 9.51% 10.87% 8.38% Net Debt to Equity 0.71 1.01 0.99 0.73 0.67 0.82 Net Debt to EBITDA 2.06 3.78 2.82 1.96 2.07 3.
Slide 8: Results Overview - Revenue & EBIT
Results Overview - Revenue & EBIT Revenues (Rs. crore) EBIT (Rs. crore) 695.9 120.4 543.6 542.0 417.2 88.0 410.7 346.2 62.9 50.7 44.3 49.5 135.3113.6 12.3 14.6 TTB CB PFB Others TTB CB PFB Others Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 1,327.7 217.7 1,045.0 1,019.4 924.4 160.2 825.4 141.6 702.9 109.8 103.7
Slide 9: Results Overview - Revenue Share
Results Overview - Revenue Share Q2 FY19 Q2 FY18 7.1% 28.4% 8.8% 32.4% 31.9% 36.3% 28.3% 26.9% CB H1 FY19 H1 FY18 PFB 7.3% 8.4% TTB 28.6% 34.5% Others 30.8% 36.3% 27.9% 26.2% CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others 8
Slide 10: Segmental Performance
Packaging Technical Chemicals Others Films Textiles
Slide 11: Chemicals Business
Ghemicals Business
Slide 12: Chemicals Business - Results Update
Chemicals Business - Results Update % Contribution to % Contribution to (Rs. Crore) Segment Revenues EBIT % EBIT Margins Revenues EBIT Q2 FY19 542.0 28.3% 62.9 11.6% 22.2% Q2 FY18 346.2 26.9% 44.3 12.8% 27.9% % Shift 56.5% 42.0% H1 FY19 1,019.4 27.9% 141.6 13.9% 26.1% H1 FY18 702.9 26.2% 103.7 14.8%
Slide 13: Chemicals Business - Key Highlights (Fluorochemicals)
Chemicals Business - Key Highlights Fluorochemicals Business • Segment reported healthy performance on account of increased penetration in the domestic markets and registered higher export volumes – SRF’s share in the Domestic Air-Conditioners market witnessed uptick in Q2 FY19 – Domestic passenger
Slide 14: Chemicals Business - Key Highlights (Specialty Chemicals)
Chemicals Business - Key Highlights Specialty Chemicals Business • Agro-Chemical segment on a path to revival– anticipate recovery in H2 FY19 • Focus continues to be on increasing the portfolio for both Agro and Pharma offerings and new customers added in existing and newer geographies • Established
Slide 15: Chemicals Business - Chemicals Technology Group
Chemicals Business - Key Highlights Chemicals Technology Group Chemicals Technology Group (CTG) is actively engaged in the development of new process technologies – Key focus on the niche area of fluorinated molecules Strong internal competencies and capabilities – Equipped with state-of-the-art R&D
Slide 16: Packaging Films Business
acKkaging Films Business
Slide 17: Packaging Films Business - Results Update
Packaging Films Business - Results Update Segment % Contribution % EBIT % Contribution to (Rs. Crore) EBIT Revenues to Revenues Margins EBIT Q2 FY19 695.9 36.3% 120.4 17.3% 42.4% Q2 FY18 410.7 31.9% 49.5 12.1% 31.1% % Shift 69.5% 143.1% H1 FY19 1,327.7 36.3% 217.7 16.4% 40.1% H1 FY18 825.4 30.8% 94.
Slide 18: Packaging Films Business - Key Highlights
Packaging Films Business - Key Highlights Packaging Films Business • The Company reported healthy performance on account of robust contribution – BOPET segment witnessed healthy margins – In the BOPP segment supply overhang continues; margins dropped across all markets • Improved profitability of th
Slide 19: Technical Textiles Business
Technical Textiles Business 18
Slide 20: Technical Textiles Business - Results Update
Technical Textiles Business - Results Update Segment % Contribution % EBIT % Contribution to (Rs. Crore) EBIT Revenues to Revenues Margins EBIT Q2 FY19 543.6 28.4% 88.0 16.2% 31.0% Q2 FY18 417.2 32.4% 50.7 12.2% 31.9% % Shift 30.3% 73.7% H1 FY19 1,045.0 28.6% 160.2 15.3% 29.5% H1 FY18 924.4 34.5% 10
Slide 21: Technical Textiles Business - Key Highlights
Technical Textiles Business - Key Highlights Tyre Cord Fabric (TCF) • Overall focus continues to be on ramping up volumes, enhancing efficiencies in sourcing and consumption of resources • SRF continues to maintain its market leadership in NTCF - witnessed higher pre- monsoon & monsoon demand – Stro
Slide 22: Others
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Slide 23: Others - Results Update
Others - Results Update Segment % Contribution % EBIT % Contribution to (Rs. Crore) EBIT Revenues to Revenues Margins EBIT Q2 FY19 135.3 7.1% 12.3 9.1% 4.3% Q2 FY18 113.6 8.8% 14.6 12.8% 9.2% % Shift 19.1% -15.6% H1 FY19 267.5 7.3% 24.0 9.0% 4.4% H1 FY18 225.2 8.4% 21.8 9.7% 6.6% 18.8% 10.0% Consoli
Slide 24: Others - Key Highlights
Others- Key Highlights Coated Fabrics & Laminated Fabrics • In Coated Fabrics, SRF continues to maintain its domestic market leadership • Introduction of new products: Supplied mesh fabric for application in solar power plant • Laminated Fabrics segment witnessed over supply situation. In addition,
Slide 25: Company Overview
Slide 26: Overview - Business Profile
Overview - Business Profile Revenue EBIT No. of Plants Chemicals Fluorochemicals Specialty Chemicals • Refrigerants • Organic intermediates for agro & 1,611 269 2 • Pharma propellants pharma • Industrial chemicals Packaging Films for Flexible Packaging Films 1,782 230 5 • Bi-axially Oriented Polyeth
Slide 27: Overview - Growth Levers
Overview Growth Levers Focus on building Nurture innovation leadership businesses through R&D Build and maintain Reposition portfolio market leadership in towards knowledge business segments based products Build a Company known and respected for its R&D capabilities Focus on building knowledge bas
Slide 28: Outlook
Slide 29: Outlook - Chemicals Business
Outlook - Chemicals Business Focus on expanding to new markets / geographies for refrigerants and solvents Integrated capacities to produce a range of current & future HFC’s to cater to customer needs Focus on moving up the value chain through accelerating qualifications for new molecules and active
Slide 30: Outlook - Packaging Films Business
Outlook - Packaging Films Business Overall the global packaging films industry is witnessing improvement in capacity utilization Supply overhang likely to continue in the BOPP segment Focus on increasing pace of R&D efforts, efficient cost structures, enhanced capabilities and value-added products i
Slide 31: Outlook - Technical Textiles Business
Outlook - Technical Textiles Business NTCF is expected to remain a key business in the segment and a generator of steady cash flow Other sub segments of Technical Textiles started to contribute to its performance Improving macroeconomic environment to have a positive impact on belting fabric segment
Slide 32: About Us
About Us Established in 1970, SRF Limited with an annual turnover of ₹5,600 crore (US$ 860 million) is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company’s diversified business portfolio covers Technical Textiles, Fluorochemical
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