AAAAAAAAAAAAAAAAAAAAAAAAAAA

NT Bureau
Chennai, July 23:
 

        SRF Limited, technical textiles, refrigerant gases major and having operating interests in Packaging Films and Pharma Intermediates sectors, posted a net profit 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 per cent over the corresponding period last year. The revenues of the company at Rs 405 crore during the period was lower by 11.5 per cent over Rs 457 crore recorded during last fiscal. The financial results of SRF were taken on record by SRF's Board at a meeting held recently.

        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 corresponding period last year.

        Reflecting on the financial performance of the company, 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.'

        The company's cash profit at Rs 84.9 crore during April-June 2007 was lower by 19 per cent against Rs 105.4 crore recorded earlier. 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 30 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.

        The SRF board also approved four capital expenditure proposals at the total investment of approximately Rs 270 crore. 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.

        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 Rs 16 crore is another important project that was approved.