Slide 1: Exchange filing cover letter for earnings call presentation
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 30.10.
Slide 2: SRF Limited Q2 & H1 FY24 Results Presentation
SRF Limited Q2 & H1 FY24 Results Presentation 30th October, 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 Q2 & H1 FY24 RESULTS OVERVIEW 15 Q2 & H1 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 15 8,000+ ₹ 14,870 cr. 90+ 4 Manufacturing 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 [Restric
Slide 7: Overview - Business Profile
Overview - Business Profile Specialty Chemicals Films for Flexible • Intermediates for AI / Packaging API / Specialized • Bi-axially Oriented Applications Polyethylene • Contract Development Terephthalate (BOPET) and Manufacturing • Bi-axially Oriented Chemicals Polypropylene (BOPP) Packaging • Alum
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: Q2 & H1 FY24 Results Overview
02. Q2 & H1 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) Q2 FY24 Q2 FY23 % Y-o-Y H1 FY24 H1 FY23 % Y-o-Y Gross Operating Revenue 3,177.4 3,727.8 -14.8% 6,515.7 7,622.5 -14.5% EBITDA 674.4 837.9 -19.5% 1,406.2 1,867.6 -24.7% EBITDA Margin (%) 21.2% 22.5% 21.6% 24.5% Depreciation 161.2 1
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) Q2 FY24 Q2 FY23 H1 FY24 H1 FY23 Total – 3,180.8 Total – 3,727.8 Total – 6,519.5 Total – 7,622.8 126.9 245.6 206.0 100.4 506.1 466.2 970.8 1,037.2 4.0% 2.7% 2.7% 3.8% 15.9% 12.5% 13.6% 14.9% 44.8% 49.1% 46.6% 47.3% 35.7% 35.3% 37.1% 34.0% 1,121.5 1
Slide 15: Results Overview - EBIT Share
Results Overview - EBIT Share EBIT (Rs. Crore) Q2 FY24 Q2 FY23 H1 FY24 H1 FY23 Total – 533.1 Total – 689.2 Total – 1,128.3 Total – 1,627.6 33.1 7.6 56.2 14.4 62.9 179.1 74.9 6.2% 1.1% 135.6 5.0% 0.9% 101.4 9.1% 396.6 11.0% 14.1% 12.0% 14.7% 128.6 11.4% 24.4% 14.5% 65.2% 63.7% 77.3 75.1% 71.6% 347.8
Slide 16: Q2 & H1 FY24 Segmental Performance
03. Q2 & H1 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 Q2 FY24 Q2 FY23 % Y-o-Y H1 FY24 H1 FY23 % Y-o-Y Segment Revenues 1,426.3 1,830.2 -22.1% 3,086.8 3,552.6 -13.1% % Contribution to Revenues 44.8% 49.1% 47.3% 46.6% EBIT 347.8 517.3 -32.8% 807.8 1,037.5 -22.1% % EBIT Margins 24.4% 28.
Slide 19: Specialty Chemicals Business - Key Highlights
Chemicals Business Specialty Chemicals Business - Key Highlights • Specialty Chemicals Business performance impacted during the Market Trends quarter due to inventory destocking caused by: o Supply chain challenges easing out post COVID • Most major agrochemical companies o Global interest rate cycl
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 and AIs • Strong internal competencies and capabilities • Equipped with state-of-the-art R&D facilities and an ingenio
Slide 21: Fluorochemicals Business - Key Highlights
Chemicals Business Fluorochemicals Business - Key Highlights Market Trends • Business performance was subdued due to: o Chinese dumping lead to low demand and weak prices in key refrigerants • Price of major ref gases seems to be better, o Sluggish growth in pharmaceuticals and agrochemical both dom
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 Q2 FY24 Q2 FY23 % Y-o-Y H1 FY24 H1 FY23 % Y-o-Y Segment Revenues 1,121.5 1,331.0 -15.7% 2,216.3 2,827.0 -21.6% % Contribution to Revenues 35.3% 35.7% 34.0% 37.1% EBIT 77.3 101.4 -23.8% 128.6 396.6 -67.6% % EBIT Margins 6.9% 7
Slide 24: Packaging Films Business - Key Highlights
Packaging Films Business Key Highlights Market Trends • Business continued facing supply overhang and pressure on margins with commissioning of several new lines • Demand-supply imbalance and margin • Enhanced share of revenue from VAPs both in BOPET and BOPP pressure to continue in medium term, esp
Slide 25: Capacitor Grade BOPP Film Capex
Packaging Films Business Capacitor Grade BOPP Film Capex Rationale • Government focus on indigenous Applications electronics manufacturing, green Capex details energy, EVs and energy storage • Use in low temperature and system frequency applications: • Expected cost ~ Rs. 275 crore, state of the art
Slide 26: 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 27: Technical Textiles Business - Results Update
Technical Textiles Business - Results Update Consolidated figures PARTICULARS Q2 FY24 Q2 FY23 % Y-o-Y H1 FY24 H1 FY23 % Y-o-Y Segment Revenues 506.1 466.2 8.6% 970.8 1037.2 -6.4% % Contribution to Revenues 15.9% 12.5% 14.9% 13.6% EBIT 74.9 62.9 19.1% 135.6 179.1 -24.3% % EBIT Margins 14.8% 13.5% 14.
Slide 28: Technical Textiles Business - Key Highlights
Technical Textiles Business Key Highlights Market Trends • Business delivered stable performance, with underlying industries showcasing healthy demand trends • Higher imports from China witnessed • Performance of Belting fabric and Polyester Industrial Yarn was • Growth across all vehicle segments t
Slide 29: Others
Others SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 27
Slide 30: Others - Results Update
Others - Results Update Consolidated figures PARTICULARS Q2 FY24 Q2 FY23 % Y-o-Y H1 FY24 H1 FY23 % Y-o-Y Segment Revenues 126.9 100.4 26.4% 245.6 206.0 19.2% % Contribution to Revenues 4.0% 2.7% 3.8% 2.7% EBIT 33.1 7.6 335.9% 56.2 14.4 292.0% % EBIT Margins 26.1% 7.6% 22.9% 7.0% % Contribution to EB
Slide 31: Others - Key Highlights
Others - Key Highlights Coated Fabrics • Achieved record quarterly sales and EBITDA; maintained domestic market leadership • Demand growing in storage liners, tarps etc. SRF captured large part of this demand with its product quality and efficient TATs. • Demand expected to remain strong in the near
Slide 32: SRF's Community Engagement
SRF’s Community Engagement • SRF Foundation honored with the Shiksha Bhushan Award at the 27th Bhamashah Samman Program by the Government of Rajasthan • SRF Foundation won the CSR Times Award 2023 (Gold) for its Rural Education Program • Eighteen trainees of the Basic Electrician Training Program co
Slide 33: Outlook
04. Outlook SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 31
Slide 34: Outlook - Chemicals Business
Outlook - Chemicals Business Specialty Chemicals • Current inventory rationalization seems transitory; may last for a couple of quarters • Customer traction still strong • Global customers’ geo-political de-risking theme continues • Focus on growth of pharma vertical • Commission new plants and thei
Slide 35: 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. • Continue focus on value-added products both in BOPP and BOPET • Aluminium foil project on the verge of commissioning, produc
Slide 36: 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 • BF and PIY to be future growth drivers • Stable business going forward, reasonable order book for ensuing quarters SRF -
Slide 37: About Us
About Us Established in 1970, SRF Limited 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 Chemicals, Packaging Films, Technical For further information ple
Slide 38: Thank You
THANK YOU SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.