Home » Business » SRF shares rise over 14% on Q1 earnings

SRF shares rise over 14% on Q1 earnings

SRF shares rise over 14% on Q1 earnings

The stock price of SRF Limited, a manufacturing company located in Gurgaon, rose over 14% intraday in today’s session in response to the company’s earnings report submitted yesterday after market hours, that gave better than expected figures, as per market analysts.

At the opening bell, the stock price of SRF formed a gap up chart pattern, registering a gain of 2.34% against the last closing of Rs 2578.45 on BSE. The stock later appreciated 14.80% intraday to Rs 2,960 on BSE.

The stock price currently trades 4.77% away from 52 week high of Rs 3,086.00. In today’s trade, the share price of SRF moved above its 30 and 50-day simple moving average and already trades above 150 and 200-day average.

With more buyers bidding than sellers offering in the stock, overall 0.80 lakh shares and 15.2 lakh shares are currently changing hands on BSE and NSE, both higher than 5,10 and 30-day average.

Profit after Tax (PAT) of the chemical-based multi-business entity rose 41% from Rs 134 crores to Rs 189 crores in Q1FY20 when compared with corresponding period of last year. Consolidated revenue of the company grew by 9% from Rs 1,676 crore to Rs 1,828 crore in Q1FY20 when compared with the corresponding period last year(CPLY).

Commenting on the results, Managing Director, Ashish Bharat Ram said, “The ChemicalsBusiness was negatively impacted due to a slower than expected recovery, post our Dahej site closure in April 2019. Having said that, our Packaging Films Business had an excellent quarter. The Technical Textiles Business was impacted negatively due to lower offtake by customers. Going forward, we remain optimistic that our diversified model will hold us in good stead.

The manufacturer of industrial and speciality intermediates reported 26% hike in revenue generated from its ‘Chemicals Business’ segment, 11% increase its revenue incurred from ‘Packaging Films Business’, while reported a decrease of 11% in it’s Technical Textiles Business’ revenue, during Q1FY20 when compared with CPLY. The ‘Other Businesses’ segment too reported an increase of 15% in its segment revenue.

Moreover, the company board after its meet has declared an interim dividend for Rs 7 per share on the paid-up equity share capital of the company.

The company has also announced approval from the board for setting up of an integrated facility for the development of PTPE at an estimated cost of Rs 424 cr. The project estimated to be finished by October 2021, will be financed through a mixture of debt and internal accruals for proposed capacity addition of 5,000 MTPA. The rationale behind the investment as per the filing is,” To enter into fluoropolymers segment of fluorocarbons to derive cost advantage from the integrated value chain.

[“source=businesstoday”]

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