SRF is a multi-business entity and one of the leading manufacturers of fluorochemicals, specialty chemicals, technical textiles and packaging flims.
In the FY18, SRF confronted sizeable challenges in its key business lines of Technical Textiles (muted revenue growth of 3.5% – led by subdued growth in NTCF), Chemicals (margins down 280bp – dragged by Specialty Chemicals, especially Agrochemicals) and Packaging (margins down 140bp – led by higher raw material prices and oversupply in BOPP business).
However, in FY19, all the moving parts worked in unison to drive accelerated growth for SRF.
SRF has successfully turned around the performance of Specialty Chemicals, with segmental revenue growing by an impressive ~75% YoY in FY19. It has guided for growth of 20-25% in Fluorochemicals and 40-50% in Specialty Chemicals in FY20.
In 1QFY20, the performance of Chemicals business was impacted to some extent by a slower-than-expected recovery post Dahej site closure in April. However, the loss of production in April-May 2019 was a temporary phenomenon and the segment should be able to meet its customers’ requirements on a full-year basis.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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