SRF Q1 Review - Change In Technical Textile Business Economics Aids Margins: Systematix
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Systematix Research Report
SRF Ltd.’s Q1 FY22 result was slightly above our estimates with revenue/Ebitda/adjusted profit after tax growth of 74%/84%/123% YoY and 4%/4%/4% QoQ.
The sequential revenue growth was led by the technical textiles business (23% QoQ) and the packaging films business (6% QoQ).
Chemicals business was impacted (down 3% QoQ) by the slowdown in the refrigerants segment in the domestic market.
SRF's operating profit margin stood at 24.9% versus 24.7% QoQ (24% estimated), driven by the all-time high margin in technical textile business due to price revisions and higher nylon tyre cord fabric spreads (Rs 149/kilogram versus Rs 106/kg QoQ).
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