Srf Limited · NSE:SRF
Srf — Q2 & H1 FY22 Earnings Presentation
36 slides from Srf's earnings presentation, Oct 26, 2021
Slide 1: Cover letter to stock exchanges
The Corporate Relationship Department, National Stock Exchange of India Limited BSE Limited “Exchange Plaza” Ist 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 26.10.
Slide 2: Q2 & H1 FY22 Results Presentation
SRF Limited Q2 & H1 FY22 Results Presentation October 26, 2021
Slide 3: Disclaimer
Disclaimer 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 contemplate
Slide 4: Contents
Contents 04 13 10 15 31 Company Q2Q4&&H1FY21 FY22 Q2 & H1 FY22 Outlook Overview Segmental Performance Results Overview Segmental Performance 3 Q2 & H1 FY22 Results Presentation | 3
Slide 5: Company Overview
COMPANY OVERVIEW Wo always find a better way
Slide 6: Snapshot
Snapshot 8,400 INR Cr Revenue 2,188 Cr EBIDTA 1,198 Cr PAT 43% Chemicals Exports to 90+ Countries 14 Manufacturing Plants 39% Packaging Operations in 4 Countries 7,000 Global Workforce 15% Technical Textiles FY 21 numbers pertaining to continuing operations only Q2 Q2&&H1 H1FY22 FY22Results ResultsP
Slide 7: Overview - Business Profile
Overview - Business Profile Revenue 3,645 3,292 1,240 232 EBIT 728 898 177 26 No of Plants 2 6 4 2 Chemicals Packaging Films Technical Textiles Others Specialty Chemicals Films for Flexible Packaging • Tyre Cord Fabrics (Nylon & • Coated Fabrics Polyester) • Laminated Fabrics • Intermediates for AI
Slide 8: Manufacturing Facilities
Manufacturing Facilities FLUOROCHEMICALS & SPECIALTY CHEMICALS 2 National Operations LAMINATED FABRICS 1. Rajasthan, India - Bhiwadi 1 National Operation 2. Gujarat, India - Dahej 1. Uttarakhand, India - Kashipur TECHNICAL TEXTILES COATED FABRICS 1 1 National Operation 4 National Operations 1 1. Mad
Slide 9: Market Leadership Across Businesses
Market Leadership Across Businesses Speciality Chemicals Fluorochemicals Packaging Films Technical Textiles ▪ Established relationship with ▪ Unique and fully integrated ▪ Recognized for expertise in ▪ Domestic market leader in Tyre marquee customers facilities extending across a developing, manufac
Slide 10: Growth Levers
Growth Levers Build a Company known and respected for its R&D capabilities Focus on building Nurture innovation Focus on building Drive growth in new leadership through R&D knowledge-based businesses businesses Reposition portfolio value-added products De-risk from Technical Build and maintain towar
Slide 11: Q2 & H1 FY22 Results Overview
We always find a better way, Q2 & H1 FY22 RESULTS OVERVIEW
Slide 12: Abridged Results Overview - Consolidated
Abridged Results Overview - Consolidated Consolidated figures Particulars (Rs. Crore) Q2 FY22 Q2 FY21 % Y-o-Y H1 FY22 H1 FY21 % Y-o-Y Gross Operating Revenue 2,839.0 2,100.8 35.1% 5,538.4 3,646.0 51.9% EBITDA 665.5 591.8 12.4% 1,343.6 974.3 37.9% EBITDA Margin (%) 23.4% 28.2% 24.3% 26.7% Depreciatio
Slide 13: Results Overview - Financial Overview
Results Overview - Financial Overview Consolidated figures Key Financial Ratios PARTICULARS FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 EBITDA Margin 17.59% 13.59% 20.43% 22.13% 21.42% 17.69% 19.00% 20.90% 26.05% PAT Margin 6.69% 4.04% 8.78% 9.51% 10.87% 8.38% 8.33% 12.70% 14.26% Net Debt to Equity
Slide 14: Results Overview - Revenue & EBIT
Results Overview - Revenue & EBIT Consolidated figures REVENUES (Rs. Crore) EBIT (Rs. Crore) 2,842.3 Q2 FY21 Q2 FY22 Q2FY21 Q2FY22 569.2 479.6 2,103.0 1,126.4 1,071.7 251.1 246.2 179.5 174.4 881.2 832.9 132.8 557.9 332.1 86.3 50.2 56.9 8.8 5.8 CB PFB TTB OT HE RS TOTA L CB PF B TTB OT HE RS TOTA L R
Slide 15: Results Overview - Revenue Share
Results Overview - Revenue Share 3.0% 2.7% Q2 FY22 Q2 FY21 19.6% 15.8% 37.8% 39.6% 41.9% 39.6% CB PFB TTB H1 FY22 2.5% H1 FY21 Others 2.2% 19.0% 12.9% 38.1% 41.4% 43.5% 40.4% CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others 14 Q2 & H1 FY22 Results Pr
Slide 16: Q2 & H1 FY22 Segmental Overview
Q2 & H1 FY22 SEGMENTAL OVERVIEW Packaging Chemicals Films Technical Textiles Others
Slide 17: Chemicals Business
Chemicals Business Q2 & H1 FY22 Results Presentation | 16
Slide 18: Chemicals Business - Results Update
Chemicals Business - Results Update Consolidated figures PARTICULARS Q2 FY22 Q2 FY21 % SHIFT H1 FY22 H1 FY21 % SHIFT Segment Revenues 1126.4 881.2 27.8% 2240.0 1586.4 41.2% % Contribution to Revenues 39.6% 41.9% 40.4% 43.5% EBIT 251.1 174.4 43.9% 473.4 263.0 80.0% % EBIT Margins 22.3% 19.8% 21.1% 16
Slide 19: Chemicals Business - Specialty Chemicals
Chemicals Business Specialty Chemicals Business o Business delivered a steady performance mainly on account of: • Healthy demand for existing and new products • Recent capitalized projects witnessing traction o External environment and certain operating issues: • Rising crude prices, logistics conce
Slide 20: Chemicals Technology Group
Chemicals Business Chemicals Technology Group o Chemicals Technology Group (CTG) is actively engaged in the development of new process technologies o Key focus on high end molecules o Strong internal competencies and capabilities o Equipped with state-of-the-art R&D facilities and an ingenious team
Slide 21: Chemicals Business - Fluorochemicals
Chemicals Business Fluorochemicals Business o Business delivered a positive performance on account of: • Higher sales volumes and enhanced realizations across products despite impact of second wave in India • Significant sales recorded from the international markets • Healthy contribution from the c
Slide 22: Packaging Films Business
Packaging Films Business Packaging Films Q2 & H1 FY21 Results Presentation | 21 Q2 & H1 FY22 Results Presentation | 21
Slide 23: Packaging Films Business - Results Update
Packaging Films Business - Results Update Consolidated figures PARTICULARS Q2 FY22 Q2 FY21 % SHIFT H1 FY22 H1 FY21 % SHIFT Segment Revenues 1071.7 832.9 28.7% 2113.0 1510.2 39.9% % Contribution to Revenues 37.7% 39.6% 38.1% 41.4% EBIT 179.5 246.2 -27.1% 416.3 466.9 -10.8% % EBIT Margins 16.7% 29.6%
Slide 24: Packaging Films Business - Key Highlights
Packaging Films Business Key Highlights o SRF has established itself as a global major in the Packaging Films Industry: • Continues to be one of the largest exporters of BOPET Films from India • Improved traction from new capacities in Hungary and Thailand • Enhanced sales of Value-Added Products (V
Slide 25: Technical Textiles Business
Technical Textiles Business Technical Textiles Q2 & H1 FY22 Results Presentation | 24
Slide 26: Technical Textiles Business - Results Update
Technical Textiles Business - Results Update Consolidated figures PARTICULARS Q2 FY22 Q2 FY21 % SHIFT H1 FY22 H1 FY21 % SHIFT Segment Revenues 557.9 332.1 68.0% 1050.8 472.6 122.4% % Contribution to Revenues 19.6% 15.8% 19.0% 12.9% EBIT 132.8 50.2 164.6% 266.5 36.2 636.6% % EBIT Margins 23.8% 15.1%
Slide 27: Technical Textiles Business - Key Highlights
Technical Textiles Business Key Highlights o TTB reported performance in line with expectations: • Higher sales volumes from the Nylon Tyre Cord Fabrics, Belting Fabrics and Polyester Industrial Yarn segments augured well • Emphasis on improving operational efficiencies o Revenue from replacement de
Slide 28: Others
Others Others Q2 & H1 FY22 Results Presentation | 27
Slide 29: Others - Results Update
Others - Results Update Consolidated figures PARTICULARS Q2 FY22 Q2 FY21 % SHIFT H1 FY22 H1 FY21 % SHIFT Segment Revenues 86.3 56.9 51.8% 139.9 80.6 73.7% % Contribution to Revenues 3.0% 2.7% 2.5% 2.2% EBIT 5.8 8.8 -34.5% 7.7 8.6 -10.1% % EBIT Margins 6.7% 15.5% 5.5% 10.6% % Contribution to EBIT 1.0
Slide 30: Others - Key Highlights
Others - Key Highlights Coated Fabrics Laminated Fabrics • SRF retains domestic market leadership, amidst weak • SRF continues to retain volume and price leadership demand, due to its focus on operational efficiency o Sales from hot / semi hot lamination contributing measures to overall performance
Slide 31: SRF's Community Engagement
SRF’s Community Engagement • SRF has won the ROTARY CSR AWARD 2021 for exemplary work in Basic Education and Literacy • Launched the Digital Guru Portal, a collaborative platform to promote the development of digital skills in teachers • MOU signed between Global Edge Pvt. Ltd and SRF Foundation to
Slide 32: Outlook
OUTLOOK
Slide 33: Outlook - Chemicals Business
Outlook - Chemicals Business Specialty Chemicals • Moving up the value chain by accelerating qualifications of new molecules in both Agro and Pharmaceuticals sectors, capacity utilization of newly commissioned plants to remain in focus • Working on key campaigns to be run in the next few quarters •
Slide 34: Outlook - Packaging Films Business
Outlook - Packaging Films Business • Expected pressure on margins leading to price corrections, looks to be abating • Emphasis on expanding sales from the new BOPET lines in Thailand & Hungary with higher VAP sales; BOPP line, which has been recently commissioned will also contribute to the overall
Slide 35: Outlook - Technical Textiles Business
Outlook - Technical Textiles Business • 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 Q2 & H1 FY22 Results Presentation | 34
Slide 36: About Us
About Us Established in 1970, SRF Limited with an annual turnover of ₹8,400 crore (US$ 1.1 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, Specialty Chemica