Srf Limited · NSE:SRF
Srf — Q2 & H1 FY21 Earnings Presentation
36 slides from Srf's earnings presentation, Nov 5, 2020
Slide 1: Cover letter to stock exchanges
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 05.11.
Slide 2: Q2 & H1 FY21 Results Presentation
SRF Limited Q2 & H1 FY21 Results Presentation November 5, 2020
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 28 29 Q2 & H1 FY21 Q2 & H1 FY21 Company Outlook Results Overview Segmental Performance Overview 3 Q2 & H1 FY21 Results Presentation | 3
Slide 5: Snapshot
Snapshot 7,209 INR Cr Revenue 1,507 Cr EBIDTA 916 Cr PAT 41% Chemicals Exports to 90+ Countries 14 Manufacturing Plants 36% Packaging Operations in 4 Countries 6,600+ Global Workforce 19% Technical Textiles FY 20 numbers pertaining to continuing operations only Q2 Q2&&H1 H1FY21 FY21Results ResultsPr
Slide 6: Overview - Business Profile
Overview - Business Profile Revenue 2,975 2,603 1,353 278 EBIT 511 556 151 32 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 API
Slide 7: 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 8: 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 9: Q2 & H1 FY21 Results Overview
Wo always find a better way Q2 & H1 FY21 RESULTS OVERVIEW
Slide 10: Abridged Results Overview - Consolidated
Abridged Results Overview - Consolidated Consolidated figures Particulars (Rs. Crore) Q2 FY21 Q2 FY20 % Y-o-Y H1 FY21 H1 FY20 % Y-o-Y Gross Operating Revenue 2,100.8 1,737.8 20.9% 3,646.0 3,501.1 4.1% EBITDA 591.8 357.2 65.7% 974.3 717.1 35.9% EBITDA Margin (%) 28.2% 20.6% - 26.7% 20.5% - Depreciati
Slide 11: Results Overview - Financial Overview
Results Overview - Financial Overview Consolidated figures Key Financial Ratios PARTICULARS FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 EBITDA Margin 17.59% 13.59% 20.43% 22.13% 21.42% 17.69% 19.00% 20.90% PAT Margin 6.69% 4.04% 8.78% 9.51% 10.87% 8.38% 8.33% 12.70% Net Debt to Equity 0.71 1.01 0.99 0.7
Slide 12: Results Overview - Revenue & EBIT
Results Overview - Revenue & EBIT Consolidated figures RE V E NUE S (Rs. C ro re ) E B I T ( Rs . C rore) Q2 FY20 Q2 FY21 Q2FY20 Q2FY21 2,100.8 1,737.8 479.6 289.8 246.1 881.2 832.9 174.4 678.0 662.6 130.8 129.9 329.9 322.8 50.2 56.9 20.9 74.4 8.8 8.1 CB P FB TTB OTHERS T O TA L CB P FB TTB OTHERS T
Slide 13: Results Overview - Revenue Share
Results Overview - Revenue Share 2.7% 4.3% Q2 FY21 Q2 FY20 15.7% 18.6% 39.7% 38.1% 41.9% 39.0% CB PFB TTB H1 FY21 2.2% H1 FY20 Others 4.3% 12.9% 20.1% 41.4% 39.0% 43.5% 36.6% CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others 12 Q2 & H1 FY21 Results Pr
Slide 14: Q2 & H1 FY21 Segmental Overview
Q2 & H1 FY21 SEGMENTAL OVERVIEW Packaging Chemicals Films Technical Textiles Others Q2 & H1 FY21 Results Presentation | 13
Slide 15: Chemicals Business
Chemicals Business Q2 & H1 FY21 Results Presentation | 14
Slide 16: Chemicals Business - Results Update
Chemicals Business - Results Update Consolidated figures PARTICULARS Q2 FY21 Q2 FY20 % SHIFT H1 FY21 H1 FY20 % SHIFT Segment Revenues 881.2 678.0 30.0% 1586.4 1281.2 24% % Contribution to Revenues 41.9% 39.0% 43.5% 36.6% EBIT 174.4 130.8 33.3% 263.0 209.5 26% % EBIT Margins 19.8% 19.3% 16.6% 16.4% %
Slide 17: Chemicals Business - Specialty Chemicals
Chemicals Business Specialty Chemicals Business o Business registered a robust performance on account of: • Higher volumes of key products leading to enhancement in operating leverage • Consistent emphasis on process enhancement & optimum utilization of resources o Continues to add new products in t
Slide 18: 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 19: Chemicals Business - Fluorochemicals
Chemicals Business Fluorochemicals Business o The segment registered a muted performance during the quarter due to: • Weak demand for refrigerants from the automobile and air conditioning segment • Low prices of refrigerants globally o The Board approved two projects related to future water security
Slide 20: Packaging Films Business
Packaging Films Business Packaging Films Q2 & H1 FY21 Results Presentation | 19
Slide 21: Packaging Films Business - Results Update
Packaging Films Business - Results Update Consolidated figures PARTICULARS (Rs. Crore) Q2 FY21 Q2 FY20 % SHIFT H1 FY21 H1 FY20 % SHIFT Segment Revenues 832.9 662.6 25.7% 1510.2 1363.9 10.7% % Contribution to Revenues 39.6% 38.1% 41.4% 39.0% EBIT 246.1 129.9 89.5% 466.9 275.5 69.5% % EBIT Margins 29.
Slide 22: Packaging Films Business - Key Highlights
Packaging Films Business Key Highlights o The Business performed exceedingly well in the quarter due to: • Healthy volumes and expanded margins which further led to an increase in operational performance of both BOPET & BOPP segments • Capacity ramp up of recently commissioned BOPET film line in Tha
Slide 23: Technical Textiles Business
Technical Textiles Business Technical Textiles
Slide 24: Technical Textiles Business - Results Update
Technical Textiles Business - Results Update Consolidated figures PARTICULARS (Rs. Crore) Q2 FY21 Q2 FY20 % SHIFT H1 FY21 H1 FY20 % SHIFT Segment Revenues 329.9 322.8 2.2% 468.8 704.4 -33.4% % Contribution to Revenues 15.7% 18.6% 12.9% 20.1% EBIT 50.2 20.9 140.2% 36.2 77.8 -53.5% % EBIT Margins 15.2
Slide 25: Technical Textiles Business - Key Highlights
Technical Textiles Business Key Highlights o The segment delivered a healthy performance owing to: • Situation normalising in Q2 with most restrictions removed on operations • Higher volumes across all segments o In Polyester Industrial Yarn, margins are under pressure due to Chinese absorbing the A
Slide 26: Others
Others Others
Slide 27: Others - Results Update
Others - Results Update Consolidated figures PARTICULARS (Rs. Cr) Q2 FY21 Q2 FY20 % SHIFT H1 FY21 H1 FY20 % SHIFT Segment Revenues 56.9 74.4 -23.6% 80.6 151.6 -46.9% % Contribution to Revenues 2.7% 4.3% 2.2% 4.3% EBIT 8.8 8.1 9.2% 8.6 18.2 -53.0% % EBIT Margins 15.6% 10.9% 10.6% 12.0% % Contribution
Slide 28: Others - Key Highlights
Others - Key Highlights Coated Fabrics Laminated Fabrics • Continues to maintain its domestic market • SRF emerged as a domestic market leader both in leadership terms of pricing and volumes • Sharp decline in tarpaulin sales due to low • Severe oversupply situation persists, leading to a movement o
Slide 29: Company Overview
a COMPANY OVERVIEW
Slide 30: Overview Growth Levers
Overview 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 maint
Slide 31: Outlook
OUTLOOK
Slide 32: Outlook - Chemicals Business
Outlook - Chemicals Business • Focus on expanding to new markets / geographies and product offerings • Focus on ramping up sales from the newly commissioned HFC plants • Margin expansion expected due to higher operating leverage • Focus on moving up the value chain by accelerating qualifications of
Slide 33: Outlook - Packaging Films Business
Outlook - Packaging Films Business • Pressure on margins expected due to the start-up of new lines leading to price corrections • The business will focus on sales ramp up from newly commissioned capacities in Thailand and Hungary. However in short term, there will be supply overhang in BOPET which c
Slide 34: Outlook - Technical Textiles Business
Outlook - Technical Textiles Business • Post lockdown, there has been a faster than expected recovery in the Tyre market, leading to a full order book • Capacities rationalization across various plants to assist higher operating leverage and cost optimization • Other sub-segments of Technical Textil
Slide 35: Our Community Engagement
Our Community Engagement • SRF Foundation successfully conducted its pilot program in academics through a blended mode of Online and Offline classes, reaching more than 12,000 students in 140 Government schools across 7 states. • In collaboration with Brillio Ltd., SRF Foundation distributed 65 tabl
Slide 36: About Us
About Us Established in 1970, SRF Limited with an annual turnover of Rs. 7,062 crore (US$ 942 million) is a chemical based multi-business conglomerate engaged in the manufacturing of industrial and specialty intermediates. The company’s diversified business portfolio covers Specialty Chemicals, Fluo