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 25.07.
Slide 2: SRF Limited Q1 FY24 Results Presentation
SRF Limited Q1 FY24 Results Presentation 25th July, 2023 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
Slide 3: Disclaimer
Disclaimer Some 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: Table of Contents
04 CONTENTS TABLE OF COMPANY OVERVIEW 10 Q1 FY24 RESULTS OVERVIEW 15 Q1 FY24 SEGMENTAL PERFORMANCE 31 OUTLOOK SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 3
Slide 5: Company Overview
01. Company Overview SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 4
Slide 6: Snapshot
Snapshot Exports to Operations in Close to 15 ₹ 14,870 cr. 90+ 4 Manufacturing 8,000 Revenue Countries Countries Facilities Global Workforce 35% 50% 15% ₹ 3,708 cr. ₹ 2,162 cr. Packaging Chemicals Technical Textiles & EBITDA PAT Others Note: On Consolidated basis as on 31st March 2023 SRF - General
Slide 7: Overview - Business Profile
Overview - Business Profile Specialty Chemicals Films for Flexible • Intermediates for AI / Packaging API / Applications • Bi-axially Oriented • Contract Manufacturing, Polyethylene Custom Research & Terephthalate (BOPET) Synthesis • Bi-axially Oriented Chemicals Polypropylene (BOPP) Packaging • Alu
Slide 8: Manufacturing Facilities
Manufacturing Facilities FLUOROCHEMICALS & SPECIALTY CHEMICALS LAMINATED FABRICS 2 National Operations 1 National Operation 1. Rajasthan, India - Bhiwadi 1. Uttarakhand, India - Kashipur 2. Gujarat, India - Dahej TECHNICAL TEXTILES 1 COATED FABRICS 1 4 National Operations 1 National Operation 1. Mad
Slide 9: Market Leadership Across Businesses
Market Leadership Across Businesses Specialty 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, manufact
Slide 10: Growth Levers
Growth Levers Focus on building leadership businesses Build and maintain market leadership in business segments Nurture innovation through R&D Reposition portfolio towards knowledge-based products Focus on building high-end value-added products Continue to build new competencies in the Chemicals Tec
Slide 11: Q1 FY24 Results Overview
02. Q1 FY24 Results Overview SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 10
Slide 12: Abridged Results Overview
Abridged Results Overview Consolidated figures Particulars (Rs. Crore) Q1 FY24 Q1 FY23 % Y-o-Y Gross Operating Revenue 3,338.4 3,894.7 -14.3% EBITDA 731.7 1,029.7 -28.9% EBITDA Margin (%) 21.9% 26.4% Depreciation 156.6 130.7 19.8% Interest 65.6 32.5 101.9% ECF (Gain) / Loss 23.7 24.9 Profit Before T
Slide 13: Results Overview - Financial Overview
Results Overview - Financial Overview Consolidated figures Key Financial Ratios PARTICULARS FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 EBITDA Margin 13.59% 20.43% 22.13% 21.42% 17.69% 19.00% 20.90% 26.05% 25.30% 24.94% PAT Margin 4.04% 8.78% 9.51% 10.87% 8.38% 8.33% 12.70% 14.26% 15.19% 14.54
Slide 14: Results Overview - Revenue Share
Results Overview - Revenue Share Revenue (Rs. Crore) Q1 FY24 Q1 FY23 Total – 3,338.7 Total – 3,895.1 118.7 105.6 464.7 571.0 3.6% 2.7% 13.9% 14.7% 44.2% 1,722.4 49.7% 32.8% 38.4% 1,496.0 1,094.8 1,660.5 CB PFB TTB Others CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textil
Slide 15: Results Overview - EBIT Share
Results Overview - EBIT Share EBIT (Rs. Crore) Q1 FY24 Q1 FY23 Total – 595.2 Total – 938.4 23.2 6.8 60.6 116.2 3.9% 0.7% 10.2% 12.4% 51.3 8.6% 55.4% 295.2 31.5% 520.2 77.3% 460.1 CB PFB TTB Others CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others SRF
Slide 16: Q1 FY24 Segmental Performance
03. Q1 FY24 Segmental Performance Chemicals Packaging Technical Others Films Textiles SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 15
Slide 17: Chemicals Business
Chemicals Business SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 16
Slide 18: Chemicals Business - Results Update
Chemicals Business - Results Update Consolidated figures PARTICULARS Q1 FY24 Q1 FY23 % Y-o-Y Segment Revenues 1,660.5 1,722.4 -3.6% % Contribution to Revenues 49.7% 44.2% EBIT 460.1 520.2 -11.6% % EBIT Margins 27.7% 30.2% % Contribution to EBIT 77.3% 55.4% SRF - General [Restricted use] - This mail,
Slide 19: Specialty Chemicals Business - Key Highlights
Chemicals Business Specialty Chemicals Business - Key Highlights • Inventory rationalization by customers, some PO rescheduling, Market Trends currently being witnessed • Agrochemical companies focusing on • The segment reported healthy performance through: inventory rationalization o Sustainable ef
Slide 20: Chemicals Technology Group
Chemicals Business Chemicals Technology Group • Chemicals Technology Group (CTG) is actively engaged in the development of new process technologies • Key focus on high end molecules • Strong internal competencies and capabilities • Equipped with state-of-the-art R&D facilities and an ingenious team
Slide 21: Fluorochemicals Business - Key Highlights
Chemicals Business Fluorochemicals Business - Key Highlights Market Trends • Business performance was impacted due to: o Chinese dumping across geographies due to weak local demand • De-stocking of HFCs to continue in the o Weak domestic summer season impacted HFCs demand short-term. However, long t
Slide 22: Packaging Films Business
Business Packaging Films SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 21
Slide 23: Packaging Films Business - Results Update
Packaging Films Business - Results Update Consolidated figures PARTICULARS Q1 FY24 Q1 FY23 % Y-o-Y Segment Revenues 1,094.8 1,496.0 -26.8% % Contribution to Revenues 32.8% 38.4% EBIT 51.3 295.2 -82.6% % EBIT Margins 4.7% 19.7% % Contribution to EBIT 8.6% 31.5% SRF - General [Restricted use] - This m
Slide 24: Packaging Films Business - Key Highlights
Packaging Films Business Key Highlights Market Trends • Business continues to face significant margin pressure. Commodity prices falling leading to inventory corrections • Several BOPP & BOPET film lines commissioned in India and globally in the • Hungary operations showing improvement compared to Q
Slide 25: Technical Textiles Business
Business Technical Textiles SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 24
Slide 26: Technical Textiles Business - Results Update
Technical Textiles Business - Results Update Consolidated figures PARTICULARS Q1 FY24 Q1 FY23 % Y-o-Y Segment Revenues 464.7 571.0 -18.6% % Contribution to Revenues 13.9% 14.7% EBIT 60.6 116.2 -47.8% % EBIT Margins 13.1% 20.4% % Contribution to EBIT 10.2% 12.4% SRF - General [Restricted use] - This
Slide 27: Technical Textiles Business - Key Highlights
Technical Textiles Business Key Highlights Market Trends • Lower Caprolactum price impacted overall revenues • Government focus on infra development • NTCF volumes gaining traction when compared to Q4 FY23 to contribute to growth • Improved performance of Belting Fabrics and Polyester • Demand for N
Slide 28: Others
Others SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 27
Slide 29: Others - Results Update
Others - Results Update Consolidated figures PARTICULARS Q1 FY24 Q1 FY23 % Y-o-Y Segment Revenues 118.7 105.6 12.4% % Contribution to Revenues 3.6% 2.7% EBIT 23.2 6.8 242.6% % EBIT Margins 19.5% 6.4% % Contribution to EBIT 3.9% 0.7% SRF - General [Restricted use] - This mail, document can be used by
Slide 30: Others - Key Highlights
Others - Key Highlights Coated Fabrics • SRF continues to maintain its leadership position in the domestic market: o Achieved highest-ever domestic sales and EBITDA o Witnessed increased demand for all categories, particularly VAPs • Demand expected to be strong in the near-future Laminated Fabrics
Slide 31: SRF's Community Engagement
SRF’s Community Engagement • Under the Rural Education Program, summer camps were organized in collaboration with local communities and schools in 9 locations across the country • Within the ambit of ‘Power of 5’ initiative, free health camps, oral health checkups were organized across several villa
Slide 32: Outlook
04. Outlook SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 31
Slide 33: Outlook - Chemicals Business
Outlook - Chemicals Business Specialty Chemicals • Current inventory rationalization seems transitory; may last for a couple of quarters. However, customer traction still strong • China + 1 remains intact, global customers’ de-risking theme continues • Focus on commissioning new plants and their ram
Slide 34: Outlook - Packaging Films Business
Outlook - Packaging Films Business • Demand supply mismatch and pressure on margins expected to continue • Downcycle at its peak; industry over- capacity to taper over time • Focus on value-added products both in BOPP and BOPET • Continue to focus on sustainability initiatives and cost optimization
Slide 35: Outlook - Technical Textiles Business
Outlook - Technical Textiles Business • Higher operating leverage and cost optimization by capacity rationalization across various plants • Demand for NTCF expected to be stable • Growth in BF and PIY as expansions get completed next year • Stable business going forward, reasonable order book for en
Slide 36: About Us
About Us Established in 1970, SRF Limited with an annual turnover of ₹14,592 crore (US$ 1.8 billion) is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company’s diversified business portfolio covers For further information please co
Slide 37: Thank You
THANK YOU SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.