Dolat Capital: SRF Q2 Review - Packaging Films Margins Propel Consecutively, Chemicals Business In-Line
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Dolat Capital Report
SRF Ltd. reported a strong Q2 FY21 performance led by growth in chemicals business (up 30.0% YoY) and packaging films (up 25.7% YoY).
Consolidated sales grew by 20.9% YoY to Rs 21.0 billion (our estimate Rs 19.1 billion).
Gross margins saw a strong improvement of 538 basis points YoY to 54.5% led by higher margins garnered from packaging films (Ebit of 29.6%).
Ebitda, consequently saw a strong growth of 73.6% YoY to Rs 5.82 billion (our estimate Rs 4.17 billion) led by gross margin expansion and low Opex (up 1.4% YoY to Rs 2.23 billion).
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