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Buzzing: SRF stock price hits all-time high after strong Q2 earnings

Buzzing: SRF stock price hits all-time high after strong Q2 earnings

Buzzing: SRF stock price hits all-time high after strong Q2 earnings
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By Sonal Bhutra  Nov 5, 2020 11:18:32 AM IST (Published)

The share price of SRF surged more than 7 percent to touch a record high level on Thursday after the company reported strong earnings for the quarter ended September 2020.

The share price of SRF surged more than 7 percent to touch a record high level on Thursday after the company reported strong earnings for the quarter ended September 2020.

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The stock rallied as much as 7.77 percent to hit an all-time high of Rs 4,785.15 apiece on the BSE. The stock is up 38 percent this year and has risen 92 percent from lows of Rs 2,492.20 level hit in March 2020.
SRF’s revenue in the second quarter of fiscal 2021 grew 21 percent YoY to Rs 2,101 crore. On the operational front, EBITDA went up by 74 percent at Rs 582 crore while EBITDA margins expanded by 840 bps to 27.7 percent.
Net profit rose 4 percent on-year to Rs 315 crore. PAT growth was limited due to higher tax expenses.
The company witnessed recovery across segments with technical textiles business revenues rising by 3 percent and EBIT increasing by 138 percent YoY.
The company said that the business delivered a healthy performance due to faster-than-expected recovery in the domestic tyre industry.
Sales volume in the Nylon Tyre Cord Fabrics segment improved by around 25 percent. Even for the chemicals business, it was a strong showing, revenues went up 30 percent EBIT went up by 33 percent and this was led by higher capacity utilization of dedicated and multipurpose plants, which led to better operating leverages and the expansion of overall margins.
However, sales of the Fluorochemicals Business remained muted owing to weak demand for refrigerants from the automobile and airconditioning segments and low prices of refrigerants globally.
The packaging films business also saw revenue growth of 26 percent and EBIT jumping around 90 percent as due to expanded margins and better capacity utilizations post the commissioning of BOPET film capacities in Thailand and Hungary.
Further, the Business’ sustained focus on the sales of Value-Added Products contributed significantly to the overall performance.
At 11:15 am, the shares of SRF were trading 7.72 percent higher at Rs 4,782.70 apiece on the BSE as against 1.40 percent gains in the benchmark Sensex.
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