The shares of India’s largest specialty chemicals manufacturer rose nearly 1 percent to Rs 2,492.85 apiece after the company commissioned an aluminium foil manufacturing facility for Rs 536 crore.
At 12:10 p.m., SRF Ltd was quoted at Rs 2,435.80 per share, down 1.26 percent on the national stock exchange The company has a market capitalization of Rs 72,504 crore.
As per the company’s exchange filing, SRF established a wholly-owned subsidiary named SRF Altech to build a manufacturing facility for producing aluminium foil. Presently, Its subsidiary company has commissioned an aluminum foil manufacturing facility for Rs 536 crore.
In FY23, the company’s chemical Business received revenue of around 60 percent followed by 20 percent from the Packaging Films Business, and 16 percent from the technical textile business.
SRF Ltd shares have gained 7 percent in the last six months and 6 percent in a year. The company has a global presence with operations in 4 countries and a presence in more than 90 countries across the world.
In FY23, the company’s India business accounted for 40% of revenues, followed by the USA (15%), Switzerland (6%), Belgium (6%), South Africa (4%), Thailand (4%), Germany (3%), and rest of world accounting for 24% of revenues.
SRF has announced a capex of 15,000 crores between FY24 and FY28. Which company planned to invest Rs 12,000 crore in the chemical business and the rest in the packaging films business.
In FY23, the company reported a net profit margin of 14.54 percent and an operating margin of 20.36 percent.
The company’s revenue has reduced by 15 percent from Rs 3,728 crore in Q2FY23 to Rs 3,177 crore in Q2FY24. During the same period, Net profit also declined by 37 percent from Rs 481 crore to Rs 301 crore.
SRF Ltd is engaged in the business of manufacturing and marketing technical textiles, chemicals, packaging films, aluminum foils, and other polymers. In FY23, the Company was granted 18 patents.
Written by Omkar Chitnis
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