Srf Limited · NSE:SRF
Srf — Q1 FY23 Earnings Presentation
37 slides from Srf's earnings presentation, Jul 22, 2022
Slide 1: Exchange filing cover letter for earnings call presentation
SF The Corporate Relationship Department, National Stock Exchange of India Limited BSE Limited "Exchange Plaza" 1st Floor , New Trading Ring Rotunda Bandra-Kurla Complex Building, P.J. Towers Bandra (E) Dalal Street, Mumbai 400 051 Mumbai 400 001 Scrip Code- 503806 Scrip Code-SRF SRF/SEC/BSE/NSE 22
Slide 2: SRF Limited Q1 FY23 Results Presentation
V SF We always find a better way SRF Limited Q1 FY23 Results Presentation July 22, 2022
Slide 3: Disclaimer
SF I vO Certain statements in this document may be forward-looking. Such statements are subject to certain risks and uncertainties like regulatory changes, local, political or economic developments, and many other factors that could cause actual results to differ materially from those contemplated b
Slide 4: Contents
Contents Company Overview…………………………………………………………………………………… 04 Q1FY23 Results Overview………………………………………………………………………….. 10 Q1FY23 Segmental Performance……………………………………………………………….. 15 Outlook…………………………………………………………………………………………………….. 31 3
Slide 5: Company Overview
vO f- Se u COMPANY SF OVERVIEW We always find a better way 4
Slide 6: Snapshot
Snapshot vO SF I Exports to Operations in 4 14 7,000+ 90+ Countries Manufacturing Facilities Global Workforce Countries 12,434 cr 42% 38% 20% Revenue Chemicals Packaging Technical Textiles & Others 3,146 cr 1,889 cr EBITDA PAT 5 Note: As on 31st March 2022
Slide 7: Overview - Business Profile
Overview - Business Profile vO SF I Chemicals Packaging Films Specialty Chemicals Fluorochemicals Films for Flexible Packaging Intermediates for AI / Refrigerants Bi-axially Oriented Polyethylene API / Applications Pharma Propellants Terephthalate (BOPET) Contract Manufacturing, Industrial Chemicals
Slide 8: Manufacturing Facilities
Manufacturing Facilities vO SF I • FLUOROCHEMICALS & SPECIALTY CHEMICALS 2 National Operations 1. Rajasthan, India - Bhiwadi 2. Gujarat, India - Dahej PACKAGING FILMS • TECHNICAL TEXTILES 4 National Operations 1. Madhya Pradesh, India - Malanpur, Bhind 2. Tamil Nadu, India - Manali 8 1 1 3 Internati
Slide 9: Market Leadership Across Businesses
Market Leadership Across Businesses vO SF I Specialty Chemicals Fluorochemicals Packaging Films Technical Textiles Established relationship with Unique and fully integrated Recognized for expertise in Domestic market leader in marquee customers facilities extending across a developing, manufacturing
Slide 10: Growth Levers
Growth Levers SF I vO Focus on building Nurture innovation leadership businesses through R&D Build and maintain market leadership I Reposition portfolio towards in business segments -'D.- - « knowledge-based products - e Innovation Led Sustainable Growth ESG initiatives in Focus on building knowledg
Slide 11: Q1 FY23 Results Overview
Q1 FY23 Results Overview 10
Slide 12: Abridged Results Overview
Abridged Results Overview vO SF I Consolidated figures Particulars (Rs. Crore) Q1 FY23 Q1 FY22 % Y-o-Y Gross Operating Revenue 3,894.7 2,699.4 44.3% EBITDA 1,029.7 678.2 51.8% EBITDA Margin (%) 26.4% 25.1% Depreciation 130.7 123.0 6.3% Interest 32.5 27.5 18.3% ECF (Gain) / Loss 24.9 (7.2) NA Profit
Slide 13: Results Overview - Financial Overview
Results Overview - Financial Overview vO SF I Consolidated figures Key Financial Ratios PARTICULARS FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 EBITDA Margin 17.59% 13.59% 20.43% 22.13% 21.42% 17.69% 19.00% 20.90% 26.05% 25.30% PAT Margin 6.69% 4.04% 8.78% 9.51% 10.87% 8.38% 8.33% 12.70% 14.26
Slide 14: Results Overview - Revenue & EBIT
Results Overview - Revenue & EBIT vO SF I Consolidated figures Revenues (Rs. Crore) EBIT (Rs. Crore) ■ Q1 FY22 ■ Q1 FY23 ■ Q1 FY22 ■ Q1FY23 938.4 3,895.1 2,701.5 594.7 520.2 1,722.4 1,496.0 295.2 1,113.7 222.3 236.8 1,041.3 571.0 133.7 116.2 492.9 105.7 6.8 53.6 1.9 CJ CB PFB TTB Others Total CB PFB
Slide 15: Results Overview - Revenue Share
Results Overview - Revenue Share vO SF I Q1 FY23 Q1 FY22 CB 44.2% CB 41.2% PFB 38.4% PFB 38.5% TTB 14.7% TTB 18.2% Others I 2.7% Others I 2.1% 14 CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others
Slide 16: Q1 FY23 Segmental Performance
0 I= Q1 FY23 Segmental Performance S Chemicals Packaging Films Technical Textiles Others 15
Slide 17: Chemicals Business
vO FE Chemicals Business • , •{: • • 16
Slide 18: Chemicals Business - Results Update
Chemicals Business - Results Update vO SF I Consolidated figures PARTICULARS (Rs. Crore) Q1 FY23 Q1 FY22 % Y-o-Y Segment Revenues 1,722.4 1,113.7 54.7% % Contribution to Revenues 44.2% 41.2% EBIT 520.2 222.3 134.0% % EBIT Margins 30.2% 20.0% % Contribution to EBIT 55.4% 37.4% 17
Slide 19: Chemicals Business - Specialty Chemicals
Chemicals Business Specialty Chemicals Business SF I vO Segment delivered a healthy performance driven by robust demand for flagship products Capex Update The Board approved several projects at the Company’s o Downstream derivatives also registered good growth leading to chemical facility at Dahej i
Slide 20: Chemicals Technology Group
Chemicals Business vO SF I Chemicals Technology Group A - Chemicals Technology Group (CTG) is actively engaged in the development of new process technologies = l .;. . I., Key focus on high end molecules .,.. « La Strong internal competencies and capabilities B ._ •• Equipped with state-of-the-art R
Slide 21: Chemicals Business - Fluorochemicals
Chemicals Business vO SF I Fluorochemicals Business Segment in structurally strong space: o Better realizations and steady volumes witnessed Market Trends across HFCs In Q1 FY23, domestic passenger vehicle o HFC facilities operating at optimal utilization levels production & sales volumes increased
Slide 22: Packaging Films Business
SSE < - • • Packaging Films - E = --tr E #5= =- Business 21
Slide 23: Packaging Films Business - Results Update
Packaging Films Business - Results Update vO SF I Consolidated figures PARTICULARS (Rs. Crore) Q1 FY23 Q1 FY22 % Y-o-Y Segment Revenues 1,496.0 1,041.3 43.7% % Contribution to Revenues 38.4% 38.5% EBIT 295.2 236.8 24.7% % EBIT Margins 19.7% 22.7% % Contribution to EBIT 31.5% 39.8% 22
Slide 24: Packaging Films Business - Key Highlights
Packaging Films Business vO SF I Key Highlights Segment registered strong results on account of: o BOPP Films delivered healthy performance o Increased sales from Value-Added Products (VAP), further enhanced Market Trends overall performance BOPET films likely to witness inventory impact due o Conti
Slide 25: Technical Textiles Business
Technical Textiles Business 24
Slide 26: Technical Textiles Business - Results Update
Technical Textiles Business - Results Update vO SF I Consolidated figures PARTICULARS (Rs. Crore) Q1 FY23 Q1 FY22 % Y-o-Y Segment Revenues 571.0 492.9 15.8% % Contribution to Revenues 14.7% 18.2% EBIT 116.2 133.7 -13.1% % EBIT Margins 20.4% 27.1% % Contribution to EBIT 12.4% 22.5% 25
Slide 27: Technical Textiles Business - Key Highlights
Technical Textiles Business vO SF I Key Highlights Performance has been healthy, on account of: o Increased export volumes from the Nylon Tyre Cord Fabrics (NTCF) and Belting Fabrics segments Market Trends Major consumers prefer domestic supplies owing to the uncertain environment, resulting o Domes
Slide 28: Others
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Slide 29: Others - Results Update
Others - Results Update vO SF I Consolidated figures PARTICULARS (Rs. Crore) Q1 FY23 Q1 FY22 % Y-o-Y Segment Revenues 105.6 53.6 96.9% % Contribution to Revenues 2.7% 2.1% EBIT 6.8 1.9 255.6% % EBIT Margins 6.4% 3.5% % Contribution to EBIT 0.7% 0.3% 28
Slide 30: Others - Key Highlights
Others - Key Highlights vO SF I Coated Fabrics SRF continues to be a leader in the domestic market with a focus on increased sourcing initiatives and superior operating performance After two years of the pandemic, the segment witnessed strong domestic demand Domestic demand for Coated Fabric is expe
Slide 31: SRF's Community Engagement
SRF’s Community Engagement vO SF I Adopted 108 Anganwadis across Bhopal, Bhind and Dhar districts 3) t,' Conducted summer camps in 7 locations (Mewat, Bhopal, Bhind, Bharuch, Kamrup, Bhiwadi, and Dhar) covering 149 Govt. schools reaching 4,110 students Swachh Vidyalaya Puruskar at the state and dist
Slide 32: Outlook
• F= • Outlook 31
Slide 33: Outlook - Chemicals Business
Outlook - Chemicals Business SF I vO Specialty Chemicals Moving up the value chain by accelerating qualifications of new molecules in Agro and Pharmaceuticals sectors, capacity utilization of newly commissioned plants to remain in focus Working on key campaigns to go on stream Strong investment plan
Slide 34: Outlook - Packaging Films Business
Outlook - Packaging Films Business SF I vO SRF Altech Limited incorporated as a wholly owned subsidiary of SRF Ltd., to engage in the manufacturing of Aluminium foil – civil work in progress Focus on enhancing sales from new BOPP film line in India and value-added products Sudden drop in raw materia
Slide 35: Outlook - Technical Textiles Business
Outlook - Technical Textiles Business vO SF I Higher operating leverage and cost optimization by capacity rationalization across various plants Other sub-segments of Technical Textiles Business expected to make a significant contribution to the overall performance Incremental investments in Belting
Slide 36: About Us
About Us vO SF I Established in 1970, SRF Limited with an annual turnover of ₹12,313 crore (US$ 1.6 billion) is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company’s diversified business portfolio covers Fluorochemicals, Specialt
Slide 37: Thank You
vO ·--·-- SE Thank You 36