PERFORMANCE OVERVIEW: The company's PBIDT during the first quarter of 2007-08 was 20.7% lower at Rs. 115.4 crore against Rs. 145.5 crore during CPLY and its PBT at Rs. 81.2 crore was down by 32.3% over Rs. 120 crore recorded during CPLY.
The company's cash profit at Rs. 84.9 crore during April-June'07 was lower by 19% against Rs. 105.4 crore recorded during CPLY. SRF's earnings per share (EPS) for the first quarter of the current financial year was Rs. 8.25 while Cash EPS was Rs. 12.51 for the quarter ended on 30th June 2007.
SRF brought its interest charges down to the level of Rs. 726 lakh against Rs. 836 lakh recorded at the end of Q1 last year.
CAPEX PLAN: The SRF board also approved four capital expenditure proposals at the total investment of approximately Rs. 270 crore in a meeting. One of the major facilities will be the installation of the Polyester Industrial Yarn Spinning Unit with downstream facilities for usage in Technical Textiles at a total investment of approx Rs.250 Crore.
This will enable SRF, a leading tyre cord and belting fabric producer, to leverage the growing demand for belting fabrics on account of spurt in the user industries in infrastructure and mining globally. Besides, SRF will also be able to participate in fabric business for radial tyres for the new generation automobiles.
Responding to a query on the prospect of the expansion projects in Technical Textiles Business, Mr. Ashish Bharat Ram, said, “We believe that investing in Polyester Industrial yarn will open new business horizon for us in an exciting new area.”
Installation of a second Metalliser Project for its Packaging Films Buisness at an investment of approx Rs.16 Crore is another important project that was approved.The metallisation of the packaging films, which are primarily used in packaging of food,cosmetics, personal and health care products, will improve the films' quality mainly in terms of barrier property.
When completed, the project will increase SRF's market share in the growing market of the quality Mettalised Films in India and abroad. Currently, SRF is the largest exporter of polyester Metallised Film from India.
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