SRF Limited, a leading Indian player in Technical Textiles, Refrigerant Gases and having operating interests in Packaging Films and Pharma Intermediates sectors, posted a net profit (Profit After Tax) of Rs. 56 crore for the first quarter of 2007-08.
The company's PAT for Q1 of the current financial year was lower by 31% over the corresponding period last year (CPLY). The revenues of the company at Rs. 405 crore during the period was lower by 11.5% over Rs. 457 crore recorded during CPLY.
The financial results of SRF were taken on record by SRF's Board in a meeting held this afternoon. Pressure on margins, higher depreciation charges due to additional impact of change in depreciation policy and reduction in the sales of carbon credits are some of the key reasons for the company's lower profitability as compared to CPLY.
Reflecting on the financial performance of the company, Mr. Ashish Bharat Ram, Managing Director, SRF Limited, explained: “The strengthening of the rupee has adversely impacted all our businesses with lower revenues and lower margins. In spite of seeing the lowest margins historically, we managed to generate a marginal profit."
"Volumes are picking up and we expect to see a corresponding increase in margins subsequently. The heartening factor in our results was the turnaround of the Packaging Film Business. While short term volatility will continue, the demand growth remains extremely robust. The other significant event for us was the commissioning of our 134-a refrigerant gas plant. This is expected to add to the topline and bottomline of the Chemical Business going forward.”
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