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videos | IST

SRF investor presentation: Higher input costs, freight rates temporary

Chemical company SRF in a recent investor presentation has highlighted that an increase in raw material prices and export freight rates impacted the first quarter (Q1FY22) but this seems to be a short-term phenomenon.

Chemical company SRF in a recent investor presentation has highlighted that an increase in raw material prices and export freight rates impacted the first quarter (Q1FY22) but this seems to be a short-term phenomenon.
Key highlights:
On packaging business
  • Surge in export freight rates impacted adversely
  • Globally, several new lines are scheduled to commence in BOPET (Biaxially Oriented Polyethylene Terephthalate) and BOPP (Biaxially oriented polypropylene)
  • This will impact industry margins in the future
  • Exports freight costs across geographies witnessing an upward trend
  • Unrest in South Africa in July will impact Q2 performance of the business as demand will be impacted
  • Re-emergence of COVID-19 in ASEAN region could affect Thailand performance
  •  
    Technical textiles
    • Domestic tyre industry has gained significant momentum
    • Continual strong demand is observed in two / three-wheeler segment due to rise in personal mobility
    • With the reopening of the mining sector, the belting fabric industry witnessed strong demand
    •  
      Chemicals
      • Increase in raw material prices (a lot of RM used, cannot quantify) and export freight rates impacted Q1
      • This seems to be a short-term phenomenon
      • Focus on expanding Pharma product profile
      • Existing expansion plans are on track
      • Growth momentum in Agrochemicals is expected to continue across key markets