SRF (SRF) Q4 99/00 earnings summary

Executive summary

• FY99-00 delivered a turnaround: net profit rose 98% YoY to Rs. 26.8 crore, with leadership retained in nylon tyre-cord fabric and refrigerant gases.

• Strategy centered on core-business expansion, non-core divestments, financial consolidation and TQM-led productivity and cost gains.

Financial highlights

• Gross sales reached Rs. 802.27 crore, up 16.33% YoY; profit before tax, before the ESPS charge, was Rs. 40.48 crore versus Rs. 15.08 crore.

• PBIDT was Rs. 172.72 crore after a Rs. 32.01 crore NPA provision; interest fell 11% to Rs. 94.73 crore, and PAT rose to Rs. 26.80 crore after ESPS and tax charges.

• Exports increased to Rs. 81.02 crore from Rs. 79.43 crore; including SRF Overseas, international markets represented about 25% of sales.

Outlook and guidance

• FY00-01 priorities: further financial consolidation and cost competitiveness, offsetting duty cuts and cheap imports, export and market-share growth, and capacity additions through debottlenecking and acquisitions.

• Bus and truck tyre production was expected to grow 6%; nylon tyre-cord fabric margins faced pressure, while domestic coated-fabric sales were forecast to grow 33%.

• Chloromethanes capacity was targeted to rise to 180% of original design; Gummidipoondi capacity was planned to double, following the acquired plant addition.