Srf Limited · NSE:SRF
Srf — Q1 FY22 Earnings Presentation
36 slides from Srf's earnings presentation, Jul 29, 2021
Slide 1: Exchange filing cover letter
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 29.07.
Slide 2: Q1 FY22 Results Presentation
SRF Limited Q1 FY22 Results Presentation July 29, 2021 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
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 our actual results to differ materially from those contemp
Slide 4: Contents
Contents 04 13 10 15 31 Company Q4 Q1&FY22 FY21 Q1 FY22 Outlook Overview Segmental Performance Results Overview Segmental Performance 3 Q1 FY22 Results Presentation | 3 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
Slide 5: Company Overview
COMPANY OVERVIEW SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
Slide 6: Snapshot
Snapshot 8,400 INR Cr Revenue 2,188 Cr EBIDTA 1,198 Cr PAT 43% Chemicals Exports to 75+ 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 Q1 Q1FY22 FY22Results ResultsPresenta
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: Q1 FY22 Results Overview
Q1 FY22 RESULTS OVERVIEW SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
Slide 12: Abridged Results Overview - Consolidated
Abridged Results Overview - Consolidated Consolidated figures Particulars (Rs. Crore) Q1 FY22 Q1 FY21 % Y-o-Y Gross Operating Revenue 2,699.4 1,545.2 74.7% EBIDTA 678.1 382.4 77.3% EBIDTA Margin (%) 25.1% 24.8% Depreciation 123.0 104.0 18.2% Interest 27.5 43.2 -36.4% ECF (Gain) / Loss (7.2) 9.1 -179
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) Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 594.7 2,701.5 295.0 236.8 222.3 220.7 1,546.7 1,113.7 133.7 1,041.3 88.6 705.2 677.4 492.9 140.4 1.9 53.6 23.7 (0.3) (14.0) CB PFB TTB OT HE RS TOTA L CB PF B TTB OT HE RS TOT
Slide 15: Results Overview - Revenue Share
Results Overview - Revenue Share Q1 FY21 Q1 FY22 1.5% 2.0% 9.1% 18.2% CB PFB 38.5% TTB 43.8% Others 45.6% 41.2% CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others 14 Q1 FY22 Results Presentation | 14 SRF - General [Restricted use] - This mail, document
Slide 16: Q1 FY22 Segmental Overview
Q1 FY22 SEGMENTAL OVERVIEW Packaging Chemicals Films Technical Textiles Others SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
Slide 17: Chemicals Business
Chemicals Business Q1 FY22 Results Presentation | 16 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
Slide 18: Chemicals Business - Results Update
Chemicals Business - Results Update Consolidated figures PARTICULARS (Rs. Cr) Q1 FY22 Q1 FY21 % SHIFT Segment Revenues 1,113.7 705.2 57.9% % Contribution to Revenues 41.2% 45.6% EBIT 222.3 88.6 151.0% % EBIT Margins 20.0% 12.6% % Contribution to EBIT 37.4% 30.0% Q1 FY22 Results Presentation | 17 SRF
Slide 19: Chemicals Business - Specialty Chemicals
Chemicals Business Specialty Chemicals Business o Segment registered healthy performance over CPLY owing to: • Higher sales from exports and domestic markets • Strong focus on adding new products to strengthen the overall product range • Increase in raw material prices and export freight rates impac
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 Segment delivered a robust performance on account of: • Higher sales volumes in the refrigerants and the blends segment, especially from the export markets • Uptick in Auto sales led to higher offtake in R-134a revenues • Healthy contribution from the ch
Slide 22: Packaging Films Business
Packaging Films Business Packaging Films Q2 & H1 FY21 Results Presentation | 21 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 21
Slide 23: Packaging Films Business - Results Update
Packaging Films Business - Results Update Consolidated figures PARTICULARS (Rs. Cr) Q1 FY22 Q1 FY21 % SHIFT Segment Revenues 1,041.3 677.4 53.7% % Contribution to Revenues 38.5% 43.8% EBIT 236.8 220.7 7.3% % EBIT Margins 22.7% 32.6% % Contribution to EBIT 39.8% 74.8% Q1 FY22 Results Presentation | 2
Slide 24: Packaging Films Business - Key Highlights
Packaging Films Business Key Highlights o Segment continues to perform well, despite impact of COVID-19 second wave on domestic markets, owing to: • New capacities that came on-stream in Hungary and Thailand • Growing product portfolio with two new products and increasing contribution from value-add
Slide 25: Technical Textiles Business
Technical Textiles Business Technical Textiles Q1 FY22 Results Presentation | 24 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
Slide 26: Technical Textiles Business - Results Update
Technical Textiles Business - Results Update Consolidated figures PARTICULARS (Rs. Cr) Q1 FY22 Q1 FY21 % SHIFT Segment Revenues 492.9 140.4 251% % Contribution to Revenues 18.2% 9.1% EBIT 133.7 -14.0 NA % EBIT Margins 27.1% -10.0% % Contribution to EBIT 22.5% -4.8% 25 Q1 FY22 Results Presentation |
Slide 27: Technical Textiles Business - Key Highlights
Technical Textiles Business Key Highlights o Segment reported a significantly improved performance on account of: • Improved demand in the Nylon Tyre Cord, Belting Fabrics and Polyester Industrial Yarn segments • Re-structuring of margin profile with long-term customers o Continued focus on enhancin
Slide 28: Others
Others Others Q1 FY22 Results Presentation | 27 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
Slide 29: Others - Results Update
Others - Results Update Consolidated figures PARTICULARS (Rs. Cr) Q1 FY22 Q1 FY21 % SHIFT Segment Revenues 53.6 23.7 126.3% % Contribution to Revenues 2.0% 1.5% EBIT 1.9 -0.3 NA % EBIT Margins 3.6% -1.2% % Contribution to EBIT 0.3% -0.1% 28 Q1 FY22 Results Presentation | 28 SRF - General [Restricted
Slide 30: Others - Key Highlights
Others - Key Highlights Coated Fabrics Laminated Fabrics • Demand for Truck Tarpaulins and awnings was • SRF maintained its volume and price leadership adversely affected due to second wave of Covid-19 • Demand for signages and hoardings was adversely affected owing to the second wave of COVID-19 •
Slide 31: Our Community Engagement
Our Community Engagement • Organized COVID-19 vaccination camps for the community in Bharuch, Bhiwadi & Gurugram • Set up of oxygen generation plant at K.K. Mehta Govt. Hospital in Amreli district of Gujarat • Launched Atal Tinkering Labs (ATL) program in collaboration with Capgemini India and NITI
Slide 32: Outlook
OUTLOOK SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
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 • Pressure on margins expected due to the start-up of new lines leading to price corrections • Re-emergence of COVID-19 in ASEAN region could affect Thailand performance • Unrest in South Africa in July will impact Q2 performance of the business • Focus on sales mi
Slide 35: Outlook - Technical Textiles Business
Outlook - Technical Textiles Business • International capacities being rebalanced due to certain capacity closures, providing positive NTCF trends • Higher operating leverage and cost optimization by capacity rationalization across various plants • Other sub-segments of Technical Textiles Business e
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