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,
10th May, 2023
Presentation- Earnings Call (Audited Financial Results for the quarter and year ended 31.03.2023)
In continuation of our letter dated 06th May, 2023 informing about hosting of earning call to discuss audited financial results for quarter and year ended 31st March, 2023, 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
Q4 & FY23 Results Presentation
May 10, 2023
Disclaimer
Some 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 communication to stakeholders. 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
Q4 & FY23 Results Overview…..…..………………….…………10
Q4 & 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
Close to 8,000 Global Workforce
Rs. 14,870 cr Revenue
35% Packaging
50% Chemicals
15% Technical Textiles & Others
Rs. 3,708 cr EBITDA
Rs. 2,162 cr PAT
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Note: On Consolidated basis as on 31st March 2023
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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
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Revenue
EBIT
No of Plants
(In Rs. Crore)
(In No)
Note: On Consolidated basis as on 31st March 2023
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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 of Pharma grade 134a/P - propellant in metered dose inhalers
Among the top five global manufacturers key Fluorochemical products
of
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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
chemicals 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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Q4 & FY23 Results Overview
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Abridged Results Overview Consolidated figures
Particulars (Rs. Crore)
Q4 FY23
Q4 FY22
% Y-o-Y
FY23
FY22
% Y-o-Y
Gross Operating Revenue
3,778.1
3,549.4
EBITDA
981.9
943.8
6.4%
4.0%
14,870.2
12,433.7
19.6%
3,708.1
3,146.0
17.9%
EBITDA Margin (%)
26.0%
26.6%
24.9%
25.3%
Depreciation
Interest
ECF (Gain) / Loss
Profit Before Tax
Profit After Tax
154.6
131.6
65.9
28.0
733.4
562.4
35.7
(11.4)
787.9
605.7
17.5%
84.6%
-6.9%
-7.1%
575.3
204.8
104.0
517.2
115.9
(72.7)
11.2%
76.7%
2,824.0
2,585.6
9.2%
2,162.3
1,888.9
14.5%
Profit After Tax Margin (%)
14.9%
17.1%
Basic and Diluted EPS (Rs.)
18.97
20.43
14.5%
15.2%
72.95
63.75
EPS is recalculated based on post bonus issued and paid-up capital
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Results Overview - Financial Overview Consolidated figures
Key Financial Ratios
PARTICULARS
EBITDA Margin
PAT Margin
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
13.59% 20.43% 22.13% 21.42% 17.69% 19.00% 20.90% 26.05% 25.30% 24.94%
4.04%
8.78%
9.51% 10.87% 8.38%
8.33% 12.70% 14.26% 15.19% 14.54%
Net Debt to Equity
1.00
0.98
0.71
0.67
0.82
0.83
0.76
0.39
0.32
0.32
Net Debt to EBIDTA
3.80
2.83
1.97
2.11
3.01
2.42
2.48
1.24
0.88
0.88
Asset Turnover
0.73
0.77
0.70
0.68
0.66
0.72
0.66
0.65
0.79
0.79
Debtors Turnover
5.81
7.43
8.79
7.21
8.10
6.90
8.09
6.64
6.94
8.33
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Results Overview - Revenue Share
Revenue (Rs. Crore)
Q4 FY23 Total – 3,779.7
Q4 FY22 Total – 3,552.7
FY23 Total – 14,880.1
FY22 Total – 12,445.6
94.3
2.5%
430.7
11.4%
93.4
2.6%
496.7
14.0%
392.6
1,893.9
2.7%
12.7%
340.3
2.7%
2,085.2
16.8%
30.5%
55.6%
1,153.0
2,101.7
39.1%
1,390.1
44.3%
1,572.5
34.8%
5,182.7
49.8%
7,410.9
38.4%
4,779.3
42.1%
5,240.8
CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others
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Results Overview - EBIT Share
EBIT (Rs. Crore)
Q4 FY23 Total – 839.9
Q4 FY22 Total – 875.7
FY23 Total – 3,193.4
FY22 Total – 2,835.0
48.4
11.3
1.3%
41..0
5.8%
4.9%
91.4
4.1
0.5%
10.4%
34.8
261.7
556.2
1.1%
8.2%
17.4%
20.4
0.7%
471.4
16.6%
31.5%
57.6%
88.0%
739.2
275.9
504.3
73.3%
2,340.7
33.4%
946.3
CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others
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49.3%
1,396.9
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Q4 & FY23 Segmental Performance
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Chemicals
Packaging Films
Technical Textiles
Others
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Chemicals Business
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Chemicals Business - Results Update
Consolidated figures
PARTICULARS
Q4 FY23 Q4 FY22 % Y-o-Y
FY23
FY22
% Y-o-Y
Segment Revenues
2,101.7
1,572.5
33.7%
7,410.9
5,240.8
41.4%
% Contribution to Revenues
55.6%
44.3%
49.8%
42.1%
EBIT
739.2
504.3
46.6%
2,340.7
1,396.9
67.6%
% EBIT Margins
35.2%
32.1%
31.6%
26.7%
% Contribution to EBIT
88.0%
57.6%
73.3%
49.3%
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Chemicals Business Specialty Chemicals Business
Business delivered strong growth during the quarter and year under review owing to:
New products commercialized - in FY23, SRF launched 6 new products, 4 in Agro and 2 in the Pharma segment
Key products and their derivatives witnessed increased sales over CPLY
Commissioned new plants during the year which will aid future volumes
Several ongoing projects on track and likely commissioned in the near future.
to be
Witnessed increased downstream customer demand for complex and advanced products. Multiple AIs under discussion with various customers.
Continuous emphasis on improving operational efficiency parameters through optimization of and embedding sustainability initiatives resources
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Market Trends
Global agrochemical market witnessed healthy growth, leading to better sales of top agrochemical companies
‘China plus one’ procurement strategy has boosted India’s potential as an alternative specialty chemical manufacturing base. Additionally, with the emerging "Europe plus one" strategy, the Indian chemical industry is poised for further growth
Prices for certain key raw materials remained high, resulting in elevated production costs of some end- products. However, some softening witnessed during the latter part of the year.
Usage of Fungicides and Herbicides is on the rise, resulting in overall healthy growth.
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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
18 new process patents were granted in FY23, taking the tally to 132 global patents to-date. Overall, the Company has applied for 406 patents
132
Global Patents granted
406
Patents applied
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Chemicals Business Fluorochemicals Business
Business delivered a healthy performance during the period:
Strong demand for Ref Gases; NPR’s of major HFC’s remained strong
Record sales achieved for Dymel® HFA 134a/P, with an expanded geographical footprint across 20+ countries
Commissioned several new plants during the year - CMS2, CPP, and CaCl2.
Continued focus on ramping up operations commissioning of ongoing projects:
in FY24 and
PTFE facility commissioning expected in the ensuing quarter. Samples being produced for the market
PX-1/PX-2 progressing as per plan
Business to focus on building export portfolio in CMS to offset margin pressure due to domestic market slow down and oversupply situation.
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Market Trends
Global demand outlook for refrigerant gas remains strong and sustainable
Healthy opportunities in key markets of India, USA, and Middle East
Raw material prices and supply chain restrictions continue to be challenges
Some impact on HFC volumes in Q1FY24 likely due to a weak summer season, likely to be transitory
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Packaging Films Business
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Packaging Films Business - Results Update Consolidated figures
PARTICULARS
Q4 FY23 Q4 FY22 % Y-o-Y
FY23
FY22
% Y-o-Y
Segment Revenues
1,153.0
1,390.1
-17.1%
5,182.7
4,779.3
8.4%
% Contribution to Revenues
30.5%
39.1%
34.8%
38.4%
EBIT
% EBIT Margins
% Contribution to EBIT
41.0
3.6%
4.9%
275.8
-85.2%
556.2
946.3
-41.2%
19.8%
31.5%
10.7%
19.8%
17.4%
33.4%
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Packaging Films Business Key Highlights
Business continued to face headwinds including margin pressure due to
significant supply addition, global demand slowdown, and steep energy costs
Market Trends
in Europe
To navigate through the uncertain times, SRF expanded its customer
footprint and focused on VAP sales
Aluminium Foil project progressing as per plan, albeit with some cost increase;
higher output, quality and product portfolio being key reasons. SRF to become
a solution provider of
the three major substrates—BOPET, BOPP and
Aluminium Foil.
FY24 expected to see continued pressure on margins
Energy costs moderating in Europe
suppliers with multi
Global locational facilities and customer relationships likely to witness positive traction
10 new products commercialised during the year (4 in BOPET and 6 in BOPP)
Volume gains from debottlenecked South African unit capacity likely to aid
Sustainability initiatives expected to gain momentum during the year
operational efficiencies
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Technical Textiles Business
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Technical Textiles Business - Results Update Consolidated figures
PARTICULARS
Q4 FY23 Q4 FY22 % Y-o-Y
FY23
FY22
% Y-o-Y
Segment Revenues
430.7
496.7
-13.3%
1,893.9
2,085.2
-9.2%
% Contribution to Revenues
11.4%
14.0%
12.7%
16.8%
EBIT
48.4
91.4
-47.1%
261.7
471.4
-44.5%
% EBIT Margins
11.2%
18.4%
13.8%
22.6%
% Contribution to EBIT
5.8%
10.4%
8.2%
16.6%
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Technical Textiles Business Key Highlights
Demand for Nylon Tyre Cord Fabric remained subdued during the quarter
Market Trends
Belting Fabric delivered higher YoY sales
Improvement in demand for Polyester Industrial Yarn with key drivers being
geo-textiles and seat belts
Focus on high-end VAP sales giving positive results
Enhanced focus on renewable energy, with a significant percentage of the
energy requirements being met by green sources
Trends
showing slight
improvement
in
demand for Nylon Tyre Cord Fabric
Demand for Belting Fabrics is expected to
remain healthy with enhanced focus on
infrastructural development
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Others
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Others - Results Update Consolidated figures
PARTICULARS
Q4 FY23 Q4 FY22 % Y-o-Y
FY23
FY22
% Y-o-Y
Segment Revenues
% Contribution to Revenues
EBIT
% EBIT Margins
% Contribution to EBIT
94.3
2.5%
11.3
12.0%
1.3%
93.4
2.6%
4.1
4.4%
0.5%
1.0%
392.6
340.3
15.4%
177.1%
2.7%
34.8
8.9%
1.1%
2.7%
20.4
6.0%
0.7%
71.1%
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Others - Key Highlights
Coated Fabrics
SRF continues to maintain its leadership position in the domestic market
Recorded its highest ever domestic sales and EBITDA due to steady demand and a robust order book
Witnessed improved demand in all categories, with healthy contribution from VAPs
Laminated Fabrics
SRF maintained its price leadership in Q4 by selling full capacity
Margins in mass signage application were subdued and expected to remain under pressure due to oversupply in the market
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SRF’s Community Engagement
The inauguration of the Whitefield metro line in Bengaluru by the Hon'ble PM, Shri Narendra Modi on March 25, 2023, provided a unique opportunity to students from SRF Foundation's intervention schools to meet and interact with the Prime Minister
Skills for Livelihood Program launched by SRF Foundation in partnership with Microsoft and Shell. Program is expected to positively affect the lives of 5,000 students
To bridge the learning gaps and ensure appropriate class-level competencies, an activity-based remedial teaching program, Khel Khel Mein Shiksha was conducted for 5,700+ students in four locations, namely Mewat, Bhiwadi, Kamrup (M), and Bharuch
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Outlook
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Outlook - Chemicals Business
Specialty Chemicals
Recently capitalised PIP plant ramp up likely to be strong
Complex products and AIs witnessing significant traction with customers
Fungicides and Herbicides continue to show growth
Continued focus on launch of new products
Continue expanding portfolio of raw material suppliers to de risk availability
Fluorochemicals
Positive trend is likely to continue - demand in the refrigerants segment is expected to remain healthy 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
Commissioning of PTFE and getting product approvals in place to remain in focus
Strong focus on effective resource utilization
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Outlook - Packaging Films Business
Aluminium foil project progressing as per plan
Focus on value-added products both in BOPP and BOPET
Hungary expected to perform better in the ensuing quarters
Demand supply mismatch and pressure on margins expected to continue at least in the medium term
Some industry players witnessing cash losses, delay / cancellations of ordered lines likely to play out
Continued focus on increasing pace of R&D efforts, sustainability initiatives and cost optimisation
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Outlook - Technical Textiles Business
Higher operating leverage and cost optimization by capacity rationalization across various plants
Demand in NTCF witnessing revival, augurs well for the near future
PIY and NIY sales witnessing positive trends
Other sub-segments of Technical Textiles Business expected to make a significant contribution to the overall performance
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About Us
Established in 1970, SRF Limited with an annual turnover of ₹14,592 crore (US$ 1.8 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 a strong workforce of close to 8,000 employees from different 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 406 patents for R&D and technology so far, of which 132 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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