SRF Limited has informed the Exchange about Investor Presentation
The Corporate Relationship Department, BSE Limited Ist Floor , New Trading Ring Rotunda Building, P.J. Towers Dalal Street, Mumbai 400 001
National Stock Exchange of India Limited “Exchange Plaza” Bandra-Kurla Complex Bandra (E) Mumbai 400 051
Scrip Code- 503806
Scrip Code-SRF
SRF/SEC/BSE/NSE
Dear Sir,
31.01.2023
Presentation- Earnings Call (Un-Audited Financial Results for the quarter and nine months ended 31.12.2022)
In continuation of our letter dated 27th January, 2023 informing about hosting of earning call to discuss Un- Audited financial results for quarter and nine months ended 31st December, 2022, please find enclosed Investors presentation, of the same for your reference and record.
The same is also available on the Company’s website i.e. www.srf.com
Thanking you,
Yours faithfully,
For SRF LIMITED
Rajat Lakhanpal Sr. VP (Corporate Compliance) & Company Secretary
Encl: As above
SRF LIMITED Block-C Sector 45 Gurugram 122 003 Haryana India Tel: +91-124—4354400 Fax: +91-124—4354500 E-mail: info@srf.com Website: www.srf.com Regd. Office: Unit No. 236 & 237, 2nd Floor DLF Galleria, Mayur Place Noida Link Road Mayur Vihar Phase 1 Extension Delhi 110091
Corporate identity No. L181010L1970PLC005197
SRF Limited
Q3 & 9M FY23 Results Presentation
January 31, 2023
Disclaimer
Certain statements in this document may be forward-looking. Such statements are subject to certain risks and uncertainties like regulatory changes, local, political or economic developments, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks related to an economic downturn in any of the countries where SRF Limited has its manufacturing and / or commercial footprint.
SRF Limited may, from time to time, make additional written and oral forward-looking statements, including exports to shareholders. The company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward- looking statements to reflect subsequent events or circumstances.
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Contents
Company Overview……………………………………………………………………………… 04
Q3 & 9M FY23 Results Overview…..……………………………………………………….. 11
Q3 & 9M FY23 Segmental Performance……..………………………………………….. 15
Outlook……………………………………………………………………………………………….... 31
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COMPANY OVERVIEW
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Snapshot
Exports to 90+ Countries
Operations in 4 Countries Countries
14 Manufacturing Facilities
7,000+ Global Workforce
12,434 cr Revenue
38% Packaging
42% Chemicals
20% Technical Textiles & Others
Note: As on 31st March 2022
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3,146 cr EBITDA
1,889 cr PAT
5
Overview - Business Profile
Chemicals Specialty Chemicals
Intermediates for AI / API / Applications
Contract Manufacturing, Custom Research & Synthesis
Fluorochemicals
Refrigerants
Pharma Propellants
Industrial Chemicals
Fluoropolymers (Upcoming)
Others
Coated Fabrics
Laminated Fabrics
Packaging Films
Films for Flexible Packaging
Bi-axially Oriented Polyethylene Terephthalate (BOPET)
Bi-axially Oriented Polypropylene (BOPP)
Technical Textiles
Tyre Cord Fabrics (Nylon & Polyester)
Belting Fabrics
Polyester Industrial Yarn
Note: As on 31st March 2022
Revenue
EBIT
No of Plants
(In Rs. Crore)
(In No)
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Manufacturing Facilities
FLUOROCHEMICALS & SPECIALTY CHEMICALS 2 National Operations
1. Rajasthan, India - Bhiwadi 2. Gujarat, India - Dahej
TECHNICAL TEXTILES 4 National Operations
1. Madhya Pradesh, India - Malanpur, Bhind 2. Tamil Nadu, India - Manali 3. Gummidipoondi 4. Viralimalai
PACKAGING FILMS 3 National Operations
1. Uttarakhand, India- Kashipur 2. Madhya Pradesh, India - Special Economic Zone (SEZ), 3. Pithampur, Indore - Bagdoon, Pithampur, Indore
LAMINATED FABRICS 1 National Operation
1. Uttarakhand, India - Kashipur
COATED FABRICS 1 National Operation
1. Tamil Nadu, India - Gummidipoondi
1 1
1
2
3
1 2
3
2 1
4
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PACKAGING FILMS 3 International Operations
4. KwaZulu - Natal, South Africa 5. Rayong, Thailand 6. Jaszfenyszaru, Hungary
South Africa
4
5
Thailand
Hungary
6
7
Market Leadership Across Businesses
Specialty Chemicals
Established relationship with marquee customers
Capability in scaling up pilot processes and creating value operational through excellence
backed
customer High levels of by engagement strong technical service, product and quality management under one roof
R&D,
Handling complex reactions - ethylation, halogenation, nitration, hydrogenation, grignard, diazotization, amination, isomerization, and organocatalysis, decarboxylation
Fluorochemicals
Packaging Films
Technical Textiles
Recognized for expertise in developing, manufacturing and marketing innovative, superior film products
Flexible business model, strong and loyal customer relationships with tailored solutions; NPD Lab to ensure future readiness
Highly efficient asset base added value offering products in close proximity to customer locations
Domestic market leader in Tyre Cord manufacturing and Belting Fabrics
40% share in India’s Nylon Tyre 2nd Cord market. largest player globally
3rd largest manufacturer of Conveyor Belting Fabrics in the world
Unique and fully integrated facilities extending across a wide range of refrigerants and industrial chemicals
Domestic leadership in HFC’s trade with strong distribution network; significant market share of Fluorochemicals India with global scale operations
in
the few global One of manufacturers for Pharma grade 134a/P - propellant in metered dose inhalers
Among the top five global manufacturers key Fluorochemicals products
for
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Growth Levers
Build a Company known and respected for its R&D capabilities
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Focus on building leadership businesses
Build and maintain market leadership in business segments
Nurture innovation through R&D
Reposition portfolio towards knowledge-based
products
Focus on building knowledge-based value-added products Continue to build new competencies in the
chemical technology space
Greater focus on ESG initiatives
Benefit the communities where we work
Embrace diversity, equity & inclusion
Enhance focus on the 3R’s- Recycle, Reuse & Reduce
Increase consumption of green/renewable sources of
energy
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Results Overview - Financial Overview Consolidated figures
Key Financial Ratios
PARTICULARS
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
EBITDA Margin
17.59% 13.59% 20.43% 22.13% 21.42% 17.69% 19.00% 20.90% 26.05% 25.30%
PAT Margin
6.69%
4.04%
8.78%
9.51%
10.87%
8.38%
8.33%
12.70% 14.26% 15.19%
Net Debt to Equity
Net Debt to EBIDTA
Asset Turnover
Debtors Turnover
0.70
2.08
0.82
7.44
1.00
3.80
0.73
5.81
0.98
2.83
0.77
7.43
0.71
1.97
0.7
8.79
0.67
2.11
0.68
7.21
0.82
3.01
0.66
8.1
0.83
2.42
0.72
6.90
0.76
2.48
0.66
8.09
0.39
1.24
0.65
6.64
0.32
0.88
0.79
6.94
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Q3 & 9M FY23 Results Overview
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Abridged Results Overview Consolidated figures
Particulars (Rs. Crore)
Q3 FY23
Q3 FY22
% Y-o-Y
9M FY23
9M FY22
% Y-o-Y
Gross Operating Revenue
3,469.7
3,345.9
3.7%
11,092.2
8,884.2
24.9%
EBITDA
858.6
858.6
-
2,726.2
2,202.2
23.8%
EBITDA Margin (%)
24.7%
25.7%
24.6%
24.8%
Depreciation
Interest
ECF (Gain) / Loss
Profit Before Tax
Profit After Tax
150.7
132.4
13.8%
29.4
110.6%
420.7
138.9
385.6
9.1%
80.2
73.1%
(33.5)
-144.9%
76.0
(61.3)
-223.9%
730.3
-13.6%
2,090.6
1,797.6
16.3%
505.5
1.1%
1,599.9
1,283.3
24.7%
62.0
15.0
630.9
510.9
Profit After Tax Margin (%)
14.7%
15.1%
Basic and Diluted EPS (Rs.)
17.24
17.06
14.4%
14.4%
53.97
43.31
EPS is recalculated based on post bonus issued and paid-up capital
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Results Overview - Revenue Share
Revenue (Rs. Crore)
Q3 FY23 Total – 3,477.6
Q3 FY22 Total – 3,349.1
9M FY23 Total – 11,110.4
9M FY22 Total – 8,892.9
92.4
2.7%
425.9
12.2%
34.6%
1,202.7
107.0
3.2%
537.8
16.1%
298.3
2.7%
1,463.2
13.2%
247.0
2.8%
1,588.6
17.9%
50.5%
1,756.6
38.1%
1,276.0
42.6%
1,428.3
36.3%
4,029.7
47.8%
5,309.2
38.1%
3,389.0
41.2%
3,668.3
CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others
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Results Overview - EBIT Share
EBIT (Rs. Crore)
Q3 FY23 Total – 725.9
Q3 FY22 Total – 795.5
9M FY23 Total – 2,353.5
9M FY22 Total – 1,959.4
34.2
9.2
1.3%
4.7%
118.6
16.3%
8.6
1.1%
113.5
14.3%
23.6
1.0%
9.1%
213.3
21.9%
16.3
0.8%
380.0
19.4%
77.7%
563.9
32.0%
254.2
52.7%
515.2
419.2
68.0%
1,601.4
34.2%
670.5
CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others
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45.6%
892.6
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Q3 & 9M FY23 Segmental Performance
Chemicals
Packaging Films
Technical Textiles
Others
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Chemicals Business
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Chemicals Business - Results Update
Consolidated figures
PARTICULARS
Q3 FY23 Q3 FY22 % Y-o-Y 9M FY23 9M FY22 % Y-o-Y
Segment Revenues
1756.6
1428.3
23.0%
5309.2
3668.3
44.7%
% Contribution to Revenues
50.5%
42.6%
47.8%
41.2%
EBIT
563.9
419.2
34.5%
1601.4
892.6
79.4%
% EBIT Margins
32.1%
29.4%
30.2%
24.3%
% Contribution to EBIT
77.7%
52.7%
68.0%
45.6%
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Chemicals Business Specialty Chemicals Business
Segment delivered a robust performance on account of:
Addition of new products that gained substantial traction
Ramp-up of recently commissioned state-of-the- art MPP4 facility at Dahej
Healthy demand for key products and downstream derivatives
In 9M FY23, SRF successfully launched 4 new Agro products and 1 new pharma product
customer engagement with global High level of innovators. Complex and advanced products and AIs remain in focus
Continued emphasis on de-risking supply chain as well as reducing costs by improving processes
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Capex Update ❑ The Board has approved a project for setting up a new and dedicated facility to produce an agrochemical intermediate at Dahej at a projected cost of ₹110 crore to meet the growing demand for the product in the future. It is expected to be commissioned in 10 months
❑ The Board has approved a project to create a structure for a new plant building at a projected cost of ₹40 crore. Expect more plants to come in and completion of the structure pre monsoon gives a head start.
Market Trends
Global agrochemicals market continues to witness growth
India's growth as an alternative specialty chemicals manufacturing base has been bolstered via the "China plus one" procurement strategy
While input costs of certain raw materials remained elevated, it has started showing signs of softening
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Chemicals Business
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Chemicals Technology Group
Chemicals Technology Group (CTG) is actively engaged in the development of new process technologies
Key focus on high end molecules
Strong internal competencies and capabilities
Equipped with state-of-the-art R&D facilities and an ingenious team of scientists and engineers
2 R&D centres in India – Bhiwadi, Rajasthan and Gurugram, Haryana
16 new process patents were granted in 9M FY23, taking the tally to 130 global patents to-date. Overall, the Company has applied for 398 patents
130
Global Patents granted
398
Patents applied
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Chemicals Business Fluorochemicals Business
Business reported healthy growth led by:
Strong traction in the domestic market and higher prices for certain key refrigerants in critical international markets
Dymel® HFA 134a/P (pharma grade gas) expanded to new geographies and reported significant growth
New Chloromethanes plant showing traction
Successfully commissioned 2 new facilities during the quarter
Capex Update ❑ The Board has approved a project for setting up a range of Specialty Fluoropolymers at Dahej at a projected cost of ₹595 crore. It is expected to be commissioned in 24 months
❑ To establish SRFs presence in the large Fluoropolymers
space and achieve strategic goals
❑ In-house
technology integration for cost competitiveness
provides
significant
backward
Major capex plans on-track, some delay in PTFE
Market Trends
Strong demand outlook for HFCs, both in the domestic and international markets
Long-term refrigerant gas demand dynamics remain intact
Healthy opportunities in key markets of India, USA, and Middle East
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Packaging Films Business
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Packaging Films Business - Results Update Consolidated figures
PARTICULARS
Q3 FY23 Q3 FY22 % Y-o-Y 9M FY23 9M FY22 % Y-o-Y
Segment Revenues
1202.7
1276.0
-5.7%
4029.7
3389.0
18.9%
% Contribution to Revenues
34.6%
38.1%
36.3%
38.1%
EBIT
118.6
254.2
-53.3%
515.2
670.5
-23.2%
% EBIT Margins
9.9%
19.9%
12.8%
19.8%
% Contribution to EBIT
16.3%
32.0%
21.9%
34.2%
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Packaging Films Business Key Highlights
Business faced headwinds on account of:
BOPET and BOPP demand and prices remained soft
Steep energy costs in Europe, impacting overall operations in
Hungary
Focus on operational efficiencies:
Various raw material sourcing initiatives were taken to better
navigate through volatility
Commercialized 2 new products in the BOPP segment during the
quarter
Business performance aided by its position in VAPs and contracted
sales
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Market Trends
With significant capacity addition both in India and overseas, pressure on margins is expected to continue in the near-term
Energy costs witnessing a downward trend in Europe which should provide some positive
Sustainability initiatives to gain momentum during the year
Demand trending towards global suppliers with multi-locational facilities
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Technical Textiles Business
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Technical Textiles Business - Results Update Consolidated figures
PARTICULARS
Q3 FY23 Q3 FY22 % Y-o-Y
9M FY23
9M FY22 % Y-o-Y
Segment Revenues
425.9
537.8
-20.8%
1463.2
1588.6
-7.9%
% Contribution to Revenues
12.2%
16.1%
13.2%
17.9%
EBIT
% EBIT Margins
% Contribution to EBIT
34.2
8.0%
4.7%
113.5
-69.9%
213.3
380.0
-43.9%
21.1%
14.3%
14.6%
23.9%
9.1%
19.4%
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Technical Textiles Business Key Highlights
Demand for NTCF remained subdued during the quarter
Belting Fabric and Nylon Industrial Yarn segments recorded higher
Market Trends
sales YoY with healthy volumes
NTCF demand expected to remain flat
Sluggish geogrid segment resulted in weak demand for Polyester
Industrial Yarn
In line with our ESG strategy, the business commissioned a solar
plant during the quarter
Continued focus on operating efficiencies and running plants
optimally.
is Demand in the Belting Fabrics segment anticipated to remain healthy, with a stable outlook for end-user industries like steel, coal, and power sectors
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Others
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Others - Results Update Consolidated figures
PARTICULARS
Q3 FY23 Q3 FY22 % Y-o-Y 9M FY23 9M FY22 % Y-o-Y
Segment Revenues
% Contribution to Revenues
EBIT
% EBIT Margins
% Contribution to EBIT
92.4
2.7%
9.2
9.9%
1.3%
107.0
-13.7%
298.3
247.0
20.8%
6.8%
3.2%
8.6
8.0%
1.0%
2.7%
23.6
7.9%
1.0%
2.8%
16.3
6.6%
0.8%
45.1%
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Others - Key Highlights
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Coated Fabrics
SRF continues to maintain its leadership position in the domestic market
Consistent demand & a strong order book
Improved contribution from the Value-Added Products
Laminated Fabrics
SRF maintained its pricing and volume leadership, with the facility operating optimally in Q3 FY23
Margins were subdued and anticipated to remain under pressure as a result of ongoing surplus supply scenario and volatile raw material prices
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SRF’s Community Engagement
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SRF Foundation received the 26th Bhamashah Award from the Government of Rajasthan for outstanding contribution in Education and infrastructural development of Government Schools in Alwar, Rajasthan
Launched SmartShiksha Digital Bus in three (Uttarakhand), locations, namely Kashipur Bharuch (Gujarat), and Mewat (Haryana)
SRF Foundation organized a two-day Indian classical music concert, "SMARAN" to honour the birth centenary of Padma Vibhushan Ustad Ali Akbar Khan.
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Outlook
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Outlook - Chemicals Business
Specialty Chemicals
Moving up the value chain by accelerating qualifications of new molecules in Agro and Pharmaceuticals sectors, working on AIs to ensure a healthy product profile for the long term
Key new product campaigns also coming up in the short term
ROI accretive projects involving complex chemicals and specialty products for SRF’s global customers
Focus on launch of new products from MPP4
Fluorochemicals
Demand in the refrigerants segment is expected to remain strong in the near to medium term
Focus on expanding in new markets / geographies and product offerings, ramping up sales from refrigerants, blends and industrial solvents
Managing key in-progress capex, and ramp up volumes to achieve high asset utilization
Strong focus on effective resource utilization
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Outlook - Packaging Films Business
Aluminium foil project in SRF Altech Limited remains on track
Focus on enhancing sales from the new BOPP film line in India and introduction of new value-added products
Expected pressure on BOPET and BOPP film margins to continue in the short run
Focus on increasing pace of R&D efforts, sustainability initiatives, efficient cost structures and enhanced capabilities
Emphasis on tie-ups with strong regional channel partners to enhance presence in key strategic markets
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Outlook - Technical Textiles Business
Higher operating leverage and cost optimization by capacity rationalization across various manufacturing facilities
Other sub-segments of Technical Textiles Business expected to contribute healthy volumes leading to significant contribution to the overall performance
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About Us
Established in 1970, SRF Limited with an annual turnover of ₹12,313 crore (US$ 1.6 billion) is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company’s diversified business portfolio covers Fluorochemicals, Specialty Chemicals, Packaging Films, Technical Textiles and Coated and Laminated Fabrics. Anchored by from different a strong workforce of 7,000+ employees nationalities working across eleven manufacturing plants in India and one each in Thailand, South Africa and Hungary, the company exports to more than 90+ countries. Equipped with State-of-the- Art R&D facilities, SRF has filed 398 patents for R&D and technology so far, of which 130 have been granted. A winner of the prestigious Deming Prize for two of its businesses, namely Tyre Cord and Chemicals, SRF continues to redefine its work and corporate culture with TQM as its management way.
For further information please contact
Anoop Poojari
CDR India
Tel: +91 98330 90434
Email: anoop@cdr-india.com
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Thank You
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