Dolat Capital: SRF Q2 Review - Packaging Films  Margins Propel Consecutively, Chemicals Business In-Line  
Packaging films facility at SRF Ltd. (Source: Company website)

Dolat Capital: SRF Q2 Review - Packaging Films Margins Propel Consecutively, Chemicals Business In-Line  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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).

Click on the attachment to read the full report:

Dolat Capital SRF Q2FY21 Result Update.pdf

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