Srf Limited · NSE:SRF
Srf — Q2 & H1 FY23 Earnings Presentation
37 slides from Srf's earnings presentation, Nov 4, 2022
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 04.11.
Slide 2: SRF Limited Q2 & H1 FY23 Results Presentation
SRF Limited Q2 & H1 FY23 Results Presentation November 04, 2022
Slide 3: 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 contemplated by the re
Slide 4: Contents
Contents Company Overview…………………………………………………………………………………… 04 Q2 & H1 FY23 Results Overview…..…………………………………………………………….. 10 Q2 & H1 FY23 Segmental Performance……..……………………………………………….. 15 Outlook……………………………………………………………………………………………………... 31 3
Slide 5: Company Overview
COMPANY OVERVIEW 4
Slide 6: Snapshot
Snapshot Exports to Operations in 4 14 7,000+ 90+ Countries Manufacturing Facilities Global Workforce Countries 12,434 cr 38% 42% 20% Revenue Packaging Chemicals 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 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 Bi-axia
Slide 8: Manufacturing Facilities
Manufacturing Facilities FLUOROCHEMICALS & SPECIALTY CHEMICALS 2 National Operations 1. Rajasthan, India - Bhiwadi 2. Gujarat, India - Dahej PACKAGING FILMS TECHNICAL TEXTILES 3 International Operations 1 4 National Operations 1 4. KwaZulu - Natal, South Africa 1. Madhya Pradesh, India - Malanpur, B
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 marquee customers facilities extending across a developing, manufacturing Tyre Co
Slide 10: Growth Levers
Growth Levers Focus on building leadership businesses Build and maintain market leadership in business segments Build a Company known and Nurture innovation through R&D respected for its Reposition portfolio towards knowledge-based R&D capabilities products Focus on building knowledge-based value-ad
Slide 11: Q2 & H1 FY23 Results Overview
Q2 & H1 FY23 Results Overview 10
Slide 12: Abridged Results Overview
Abridged Results Overview Consolidated figures Particulars (Rs. Crore) Q2 FY23 Q2 FY22 % Y-o-Y H1 FY23 H1 FY22 % Y-o-Y Gross Operating Revenue 3,727.8 2,839.0 31.3% 7,622.5 5,538.4 37.6% EBITDA 837.9 665.5 25.9% 1,867.6 1,343.6 39.0% EBITDA Margin (%) 22.5% 23.4% 24.5% 24.3% Depreciation 139.3 130.3
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 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% 15.19%
Slide 14: Results Overview - Revenue & EBIT
Results Overview - Revenue & EBIT Consolidated figures Revenues (Rs. Crore) EBIT (Rs. Crore) Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 3,727.8 689.2 569.2 2,842.3 517.3 1,830.2 1,331.0 1,126.4 251.1 1,071.7 179.5 557.9 466.2 101.4 132.8 62.9 5.8 7.6 86.3 100.4 CB PFB TTB Others Total CB PFB TTB Others Total R
Slide 15: Results Overview - Revenue Share
Results Overview - Revenue Share Q2 FY23 Q2 FY22 CB 49.1% CB 39.7% PFB 35.7% PFB 37.7% TTB 12.5% TTB 19.6% Others 2.7% Others 3.0% H1 FY23 H1 FY22 CB 46.6% CB 40.4% PFB 37.1% PFB 38.1% TTB 13.6% TTB 19.0% Others 2.7% Others 2.5% 14 CB – Chemicals Business; PFB - Packaging Films Business; TTB – Techn
Slide 16: Q2 & H1 FY23 Segmental Performance
Q2 & H1 FY23 Segmental Performance Chemicals Packaging Films Technical Textiles Others 15
Slide 17: Chemicals Business
Chemicals Business 16
Slide 18: Chemicals Business - Results Update
Chemicals Business - Results Update Consolidated figures PARTICULARS (Rs. Crore) Q2 FY23 Q2 FY22 % Y-o-Y H1 FY23 H1 FY22 % Y-o-Y Segment Revenues 1,830.2 1,126.4 62.5% 3,552.6 2,240.0 58.6% % Contribution to Revenues 49.1% 39.6% 46.6% 40.4% EBIT 517.3 251.1 106.0% 1,037.5 473.4 119.2% % EBIT Margins
Slide 19: Chemicals Business - Specialty Chemicals
Chemicals Business Specialty Chemicals Business Capex Update Segment registered strong performance on account of: The Board approved projects aggregating ₹604 crore for four new plants in the agrochemical space and capacity New products witnessing significant traction enhancement of an existing plan
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 of scien
Slide 21: Chemicals Business - Fluorochemicals
Chemicals Business Fluorochemicals Business Segment delivered steady performance in a seasonally soft Market Trends quarter driven by: Structural demand improvement witnessed in the refrigerants segment Higher realizations and stable volumes across all HFCs Healthy opportunities in key markets of In
Slide 22: Packaging Films Business
Packaging Films Business 21
Slide 23: Packaging Films Business - Results Update
Packaging Films Business - Results Update Consolidated figures PARTICULARS (Rs. Crore) Q2 FY23 Q2 FY22 % Y-o-Y H1 FY23 H1 FY22 % Y-o-Y Segment Revenues 1,331.0 1,071.7 24.2% 2,827.0 2,113.0 33.8% % Contribution to Revenues 35.7% 37.7% 37.1% 38.1% EBIT 101.4 179.5 (43.5%) 396.6 416.2 (4.7%) % EBIT Ma
Slide 24: Packaging Films Business - Key Highlights
Packaging Films Business Key Highlights In a challenging environment, SRF has continued to focus on operational efficiency measures to ensure it remains one of the lowest-cost producers Market Trends BOPET Films - multiple new lines have gone locally in the world and globally Segment faced several h
Slide 25: Technical Textiles Business
Technical Textiles Business 24
Slide 26: Technical Textiles Business - Results Update
Technical Textiles Business - Results Update Consolidated figures PARTICULARS (Rs. Crore) Q2 FY23 Q2 FY22 % Y-o-Y H1 FY23 H1 FY22 % Y-o-Y Segment Revenues 466.2 557.9 (16.4%) 1,037.2 1,050.9 (1.3%) % Contribution to Revenues 12.5% 19.6% 13.6% 19.0% EBIT 62.9 132.8 (52.6%) 179.1 266.5 (32.8%) % EBIT
Slide 27: Technical Textiles Business - Key Highlights
Technical Textiles Business Key Highlights Business has witnessed lower offtake in Nylon Tyre Cord Fabric Market Trends segment NTCF demand dropped significantly in new and replacement market Improved volumes from the Belting Fabrics and Polyester Industrial Yarn segments contributed to the overall
Slide 28: Others
Others 27
Slide 29: Others - Results Update
Others - Results Update Consolidated figures PARTICULARS (Rs. Crore) Q2 FY23 Q2 FY22 % Y-o-Y H1 FY23 H1 FY22 % Y-o-Y Segment Revenues 100.4 86.3 16.3% 206.0 139.9 47.2% % Contribution to Revenues 2.7% 3.0% 2.7% 2.5% EBIT 7.6 5.8 31.1% 14.4 7.7 86.6% % EBIT Margins 7.6% 6.7% 7.0% 5.5% % Contribution
Slide 30: Others - Key Highlights
Others - Key Highlights Coated Fabrics SRF continues to maintain its leadership in the domestic market backed by: Consistent demand & a strong order book Improved contribution from the Value-Added Products Laminated Fabrics SRF maintained its price and volume leadership, with the plant operating opt
Slide 31: SRF's Community Engagement
SRF’s Community Engagement 523 unemployed youth trained under the Basic Electrician Training Program, 90% trainees have secured employment Under the Capgemini Digital Literacy Program, 4,638 trainees earned certification Under the Foundation’s Sports Program, 12 students won the top 3 positions in t
Slide 32: Outlook
Outlook 31
Slide 33: Outlook - Chemicals Business
Outlook - Chemicals Business Specialty Chemicals Growth momentum achieved in H1 looks sustainable given strong order book Increased complexity and addition of new products from recently commissioned capacities in Agro and Pharmaceuticals sectors to remain in focus Working on key campaigns to go on s
Slide 34: Outlook - Packaging Films Business
Outlook - Packaging Films Business Aluminum Foil project remains on track Focus on enhancing sales from new BOPP film line in India and expanding value-added product portfolio Key raw material prices witnessing softness Industry witnessing pressure on BOPET Film margins, value added product portfoli
Slide 35: Outlook - Technical Textiles Business
Outlook - Technical Textiles Business Future demand for NTCF likely to witness revival in H2 FY23 Belting Fabrics and PIY Business remains on a steady wicket Cost optimization for various plants to remain in focus 34
Slide 36: About Us
About Us 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, Specialty Chemic
Slide 37: Thank You
Thank You sre 36