Slide 1: Exchange filing cover letter for earnings call presentation
Pt IF' The BSE Limited BSE's Corporate Relationship National Stock Exchange of India Limited Department "Exchange Plaza" 1st Floor, New Trading Ring, Bandra-Kurla Complex Rotunda Building, P.J. Towers, Bandr6 (E) Dalai Street, Fort, Mumbai 400 051 Mumbai 400 001 SRF/SEC-D/16 05.11.2019 Dear Sir, Pre
Slide 2: SRF Limited Q2 & H1 FY20 Results Presentation
SRF Limited We always find a better way November 05, 2019 Q2 & H1 FY20 Results Presentation
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward- looking 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 ma
Slide 4: Contents
Contents Q2 & H1 FY20 Results Overview 04 Q2 & H1 FY20 Segmental Performance 09 Company Overview 24 Outlook 27 3
Slide 5: Q2 & H1 FY20 Results Overview
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Slide 6: Results Overview - Financial Overview
Results Overview - Financial Overview Abridged Statement of Profit & Loss Particulars (Rs. Crore) Q2 FY20 Q2 FY19 % Y-o-Y H1 FY20 H1 FY19 % Y-o-Y Gross Operating Revenue 1,737.8 1,755.0 -1.0% 3,501.1 3,352.7 4.4% EBITDA 357.2 320.4 11.5% 717.1 640.3 12.0% EBITDA Margin (%) 20.6% 18.3% 20.5% 19.1% De
Slide 7: Results Overview - Financial Overview (Key Financial Ratios)
Results Overview - Financial Overview Key Financial Ratios Particulars FY13 FY14 FY15 FY16 FY17 FY18 FY19 EBITDA margin 17.59% 13.59% 20.43% 22.13% 21.42% 17.69% 18.82% PAT Margin 6.69% 4.04% 8.78% 9.51% 10.87% 8.38% 8.51% Net Debt to Equity 0.71 1.01 0.99 0.73 0.67 0.82 0.83 Net Debt to EBITDA 2.06
Slide 8: Results Overview - Revenue & EBIT
Results Overview - Revenue & EBIT Revenues (Rs. crore) EBIT (Rs. crore) 678.0 662.7 695.9 130.8 129.9 120.4 542.0 453.5 69.5 62.9 323.0 74.4 65.0 20.9 8.1 5.0 TTB CB PFB Others TTB CB PFB Others Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 1,281.2 1,364.3 1,327.7 275.5 1,019.4 217.7 209.5 876.4 705.1 141.2 141.6
Slide 9: Results Overview - Revenue Share
Results Overview - Revenue Share Q2 FY20 Q2 FY19 18.6% 4.3% 3.7% 25.8% 38.1% 39.6% 39.0% 30.9% CB H1 FY20 H1 FY19 PFB 4.3% 3.9% 20.1% TTB 26.1% 39.0% Others 39.6% 36.6% 30.4% CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others 8
Slide 10: Segmental Performance
Packaging Technical Chemicals Others Films Textiles
Slide 11: Chemicals Business
Ghemicals Business
Slide 12: Chemicals Business - Results Update
Chemicals Business - Results Update % Contribution to % Contribution to (Rs. Crore) Segment Revenues EBIT % EBIT Margins Revenues EBIT Q2 FY20 678.0 39.0% 130.8 19.3% 45.2% Q2 FY19 542.0 30.9% 62.9 11.6% 24.4% % Shift 25.1% 107.9% H1 FY20 1,281.2 36.6% 209.5 16.4% 36.1% H1 FY19 1,019.4 30.4% 141.6 1
Slide 13: Chemicals Business - Key Highlights (Fluorochemicals)
Chemicals Business - Key Highlights Fluorochemicals Business • Performed in line with the expectations on account of : • Increase in domestic volumes and market share of key refrigerants, despite the auto sector slowdown and drop in global prices of refrigerants • Significant contribution from Chlor
Slide 14: Chemicals Business - Key Highlights (Specialty Chemicals)
Chemicals Business - Key Highlights Specialty Chemicals Business • Performed well with strong demand witnessed in the overseas markets • Both Agro & Pharma products gaining momentum • Dahej facility is on track to deliver customer commitments for FY20 • The Company continues to penetrate further in
Slide 15: Chemicals Business - Key Highlights (Chemicals Technology Group)
Chemicals Business - Key Highlights Chemicals Technology Group Chemicals Technology Group (CTG) is actively engaged in the development of new process technologies – Key focus on the high end molecules Strong internal competencies and capabilities – Equipped with state-of-the-art R&D facilities and a
Slide 16: Packaging Films Business
acKkaging Films Business
Slide 17: Packaging Films Business - Results Update
Packaging Films Business - Results Update Segment % Contribution % EBIT % Contribution to (Rs. Crore) EBIT Revenues to Revenues Margins EBIT Q2 FY20 662.7 38.1% 129.9 19.6% 44.8% Q2 FY19 695.9 39.6% 120.4 17.3% 46.7% % Shift -4.8% 7.9% H1 FY20 1,364.3 39.0% 275.5 20.2% 47.4% H1 FY19 1,327.7 39.6% 21
Slide 18: Packaging Films Business - Key Highlights
Packaging Films Business - Key Highlights Packaging Films Business • Segment delivered healthy results on account of higher volumes and improved margins • Both the exports and domestic market in the BOPET & BOPP segments delivered steady contribution to operating profits • Significant growth in VAP
Slide 19: Technical Textiles Business
Technical Textiles Business 18
Slide 20: Technical Textiles Business - Results Update
Technical Textiles Business - Results Update Segment % Contribution % EBIT % Contribution to (Rs. Crore) EBIT Revenues to Revenues Margins EBIT Q2 FY20 323.0 18.6% 20.9 6.5% 7.2% Q2 FY19 453.5 25.8% 69.5 15.3% 27.0% % Shift -28.8% -69.9% H1 FY20 705.1 20.1% 77.8 11.0% 13.4% H1 FY19 876.4 26.1% 141.2
Slide 21: Technical Textiles Business - Key Highlights (Tyre Cord Fabric)
Technical Textiles Business - Key Highlights Tyre Cord Fabric (TCF) • NTCF performance impacted due to slump in automotive sector • Witnessed shut downs / production cuts by tyre companies leading to an overall decline in volumes and margins of the business • Replacement demand also impacted due to
Slide 22: Technical Textiles Business - Key Highlights (Belting Fabrics & Polyester Yarn)
Technical Textiles Business - Key Highlights Belting Fabrics & Polyester Yarn • The performance of Belting Fabrics was in line with expectations: • Higher sales of value added products aided growth • Segment witnessed delayed cash flows in H1 FY20 owing to the on-going credit challenges faced by the
Slide 23: Others
SRrfe We always find a better way
Slide 24: Others - Results Update
Others - Results Update Segment % Contribution % EBIT % Contribution to (Rs. Crore) EBIT Revenues to Revenues Margins EBIT Q2 FY20 74.4 4.3% 8.10 10.9% 2.8% Q2 FY19 65.0 3.7% 4.97 7.6% 1.9% % Shift 14.5% 62.9% H1 FY20 4.3% 18.2 12.0% 3.1% 151.6 H1 FY19 132.1 3.9% 10.4 7.9% 2.0% % Shift 14.8% 75.5% C
Slide 25: Others - Key Highlights
Others- Key Highlights Coated Fabrics • SRF continues to maintain its price and volume leadership in Coated Fabrics • Challenge in the sale of truck tarpaulin on account of low movement of new chassis Laminated Fabrics • In Laminated Fabrics sales volume grew despite adverse market situation • Conti
Slide 26: Company Overview
Slide 27: Overview - Business Profile
Overview - Business Profile Revenue EBIT No. of Plants Chemicals Fluorochemicals Specialty Chemicals • Refrigerants • Organic intermediates for agro & 2445 384 2 • Pharma propellants pharma • Industrial chemicals Packaging Films for Flexible Packaging Films 2653 411 5 • Bi-axially Oriented Polyethyl
Slide 28: Overview - Growth Levers
Overview Growth Levers Focus on building Nurture innovation leadership businesses through R&D Build and maintain Reposition portfolio market leadership in towards knowledge business segments based products Build a Company known and respected for its R&D capabilities Focus on building knowledge bas
Slide 29: Outlook
Slide 30: Outlook - Chemicals Business
Outlook - Chemicals Business Focus on expanding to new markets / geographies and product offerings Integrated capacities to produce a range of current & future HFC’s to cater to customer needs Focus on moving up the value chain through accelerating qualifications for new molecules and active ingredi
Slide 31: Outlook - Packaging Films Business
Outlook - Packaging Films Business Overall the global packaging films industry is witnessing improvement in capacity utilization. However in short term, there will be supply overhang which will affect margins negatively Further improvement expected in the BOPP segment Focus on increasing pace of R&D
Slide 32: Outlook - Technical Textiles Business
Outlook - Technical Textiles Business NTCF demand is expected to remain negative in the coming months due to general economic environment Other sub segments of Technical Textiles performing as per expectations Improving macroeconomic environment may have a positive impact 31
Slide 33: About Us
About Us Established in 1970, SRF Limited with an annual turnover of ₹7,541 crore (US$ 1,077 million) is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company’s diversified business portfolio covers Technical Textiles, Fluorochemic
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