Result Presentation For December 31, 2015 (Result)

SRF Limited
Q3 & 9M FY16 Results Presentation

February 2016
Diversity
Innovation
Performance
Disclaimer
Certain statements in this document may be forward-looking statements. Such
forward-looking statements are subject to certain risks and uncertainties like
regulatory changes, local political or economic developments, and many other factors
that could cause our actual results to differ materially from those contemplated by the
relevant forward-looking statements. SRF Limited 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.
Contents
Q3 & 9M FY16 Results Overview

Q3 & 9M FY16 Segmental Performance
Company Overview
Outlook
Q3 & 9M FY16 Results Overview
Results Overview Financial Overview

Abridged Statement of Profit & Loss
(Rs. Crore)
Net Operating Revenue
Q3 FY 15
%YOY
9M FY 16
9M FY 15
%YOY
1,097.4
1,113.2
-1.4%
3,485.1
3,458.5
0.8%
EBIDTA
236.4
185.5
27.4%
748.7
615.1
21.7%
EBIDTA Margin
21.5%
16.7%
21.5%
17.8%
Depreciation
71.3
60.8
17.2%
216.7
180.2
20.2%
Interest
30.5
36.9
-17.4%
96.8
107.1
-9.6%
PBT
134.6
87.8
53.4%
435.2
327.8
32.8%
PAT
100.7
71.4
41.0%
314.2
242.4
29.6%
PAT Margin
9.2%
6.4%
9.0%
7.0%
Diluted EPS
17.5
12.4
54.7
42.2
Consolidated figures
Q3 FY 16
41.0%
29.6%
Results Overview Financial Overview

Key Financial Ratios
Particulars
FY13
FY14
FY15
EBITDA margin
17.59%
13.59%
17.43%
PAT Margin
6.69%
4.04%
6.67%
Net Debt to Equity
0.71
1.01
0.99
Net Debt to EBITDA
2.06
3.78
2.82
Asset Turnover
0.82
0.73
0.76
Debtors Turnover
0.13
0.17
0.13
Results Overview Revenue & EBIT

Revenues (Rs. crore)
EBIT (Rs. crore)
500.8
395.0
105.1
379.0
305.8
306.6
323.4
74.6
42.4
21.2
TTB
CPB
Q3 FY15
PFB
TTB
Q3 FY16
CPB
Q3 FY15
Revenues (Rs. crore)

1,551.8
1,344.4
20.4
43.1
PFB
Q3 FY16
EBIT (Rs. crore)

284.8
237.2
1,122.8
946.7
960.0 1,018.7
149.4
152.3
123.5
57.7
TTB
CPB
9M FY15
PFB
9M FY16
TTB
CPB
9M FY15
PFB
9M FY16
TTB Technical Textiles Business; CPB Chemicals & Polymers Business; PFB - Packaging Films Business;
7
Results Overview Revenue Share

Q3 FY16
Q3 FY15
305.8
27%
500.8
45%
379.0
35%
306.6
28%
9M FY16
9M FY15
960.0
28%
946.7
27%
395.0
36%
323.4
29%
1551.8
45%
1018.7
29%
1344.4
39%
1122.8
32%
TTB Technical Textiles Business; CPB Chemicals & Polymers Business; PFB - Packaging Films Business;
8
Technical Textiles
Chemicals & Polymers
Packaging Films
Q3 & 9M Segmental Overview
Technical Textiles Results Update
Segment
Revenues
%
contribution
to Revenues
Q3 FY16
395.0
Q3 FY15
500.8
% Shift
(21.1)
(Rs. crore)
%
contribution
to EBIT
36.0
21.2
5.4
12.5
45.0
42.4
8.5
30.8
(50.1)
9M FY16
1,344.4
38.6
123.5
9.2
22.0
9M FY15
1,551.8
44.9
149.4
9.6
33.6
% Shift
10
EBIT
%
EBIT
Margins
(13.4)
(17.4)
Technical Textiles Key Highlights
TCF
Continued trend of low NTCF demand and significant reduction in commodity prices impacted the
revenue
Radialisation trend in the domestic market expected to grow
Flooding at Chennai affected the regular operations of the SRFs Manali plant; Operations of the
Manali plant being revived in phases
Coated Fabrics
SRF did reasonably well in the off season
SRF to focus more on emerging as a solution provider than just a product provider
Laminated Fabrics
Belting Fabrics
11
SRF able to maintain its market share and price premium in the tough competitive environment
Domestic demand for belting fabrics remained low
Technical Textiles
Packaging Films
Segment
Revenues
%
contribution
to Revenues
Q3 FY16
379.0
Q3 FY15
306.6
% Shift
23.6
(Rs. crore)
EBIT
%
EBIT
Margins
%
contribution
to EBIT
34.5
105.1
27.7
62.1
27.5
74.6
24.3
54.3
40.9
9M FY16
1,122.8
32.2
284.8
25.4
50.8
9M FY15
946.7
27.4
237.2
25.1
53.4
% Shift
18.6
13
Results Update
20.1
Key Highlights
Fluorochemicals Business
HCFC-22 export selling price under pressure
SRF improved its market share significantly in HFC Blends
Projects for manufacture of R-32 and R-134aPharma on track; This will make SRF the first domestic
producer of both these products
14
Transition of Dymel, the HFC-134a-Pharma business (acquired from Dupont in December 2014) on track
Specialty Chemicals business
Agro Industry remains under pressure globally
SRF focus on pharmaceutical intermediates yielding good results
Technical Textiles
Packaging Films
Packaging Films
Segment
Revenues
%
contribution
to Revenues
Q3 FY16
323.4
Q3 FY15
305.8
% Shift
5.7
(Rs. crore)
EBIT
%
EBIT
Margins
%
contribution
to EBIT
29.5
43.1
13.3
25.4
27.5
20.4
6.7
14.9
110.6
9M FY16
1,018.7
29.2
152.3
15.0
27.2
9M FY15
960.0
27.8
57.7
6.0
13.0
% Shift
16
Results Update
6.1
163.8
Packaging Films
Key Highlights
Packaging Films Business
The business continued to post good results
Q3, the best ever quarter for South Africa
PFB was able to run all its plants at more than full capacity
SRF continues to reap price benefits of in-house sourcing of resin, a key raw material for polyester
films
Outlook
17
Pressure on margins expected to continue globally
Company Overview
Overview
Business Profile
Technical Textiles

Fluorochemicals
Tyre cord fabrics
(nylon & polyester)
Films for Flexible Packaging
Refrigerants
Chlorinated solvents
Laminated fabrics
Industrial yarns
Operating Profit
Number of Plant Locations
Consolidated, FY15 figures in Rs. Crore
(BOPET)
Specialty Chemicals
Coated fabrics
Bi-axially Oriented
Polyethylene Terephthalate
Belting fabrics
Revenue
19
Packaging Films
Organic intermediates
Bi-axially Oriented
Polypropylene (BOPP)
Engineering Plastics
2,032
196
7
Polymer compounds
Revenue
Operating Profit
1,263
298
4
Revenue
Operating Profit
1,245
64
4
Overview
Growth Levers
Focus on
building
leadership
businesses
Nurture
innovation
through R&D
Build and
maintain
market
leadership in
business
segments
Focus on building
knowledge based
value-added
products
20
Continue to
build new
competencies
in the
chemical
technology
space
Build a Company
known and
respected for its
R&D capabilities
Reposition
portfolio
towards
knowledge
based
products
De-risk from
Technical
Textiles
Business
Drive growth
in new
businesses
Overview
Driving Innovation through R&D
The Chemicals Technology Group (CTG) is actively

engaged in the development of new process technologies
Key focus on the niche area of fluorinated 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
Filed 14 process patents during FY2016 taking the tally to

72 patents filed till date, out of which 4 have been
granted
21
Outlook
Outlook
Technical Textiles Business
NTCF is expected to remain a key business

in the segment and a generator of steady
cash flow
Demand for NTCF to mirror Indian GDP

growth as it is closely linked to the
transportation sector
Improving macroeconomic environment to
have a positive impact on coated and

belting fabric segments going forward
23
Outlook
Chemicals & Polymers Business
Future potential and prospects of the

Specialty Chemicals Business remain robust
Focus on expanding range of specialty
products and moving towards higher valueadded products in the agrochemical and
pharmaceutical sectors
Ongoing investments in R&D leading to a

healthy pipeline of new products
24
Outlook
Packaging Films Business
Driven by the robust FMCG growth and fast

urbanisation, domestic market in India is
expected to grow by 10% year-on-year
Focus on having efficient cost structures,

enhanced capabilities and incorporating
more value-added products in the portfolio
International
operations
improved profitability in FY16
25
to
report
About Us
Established in 1970, SRF as a group has today grown into a global entity with operations in 3
countries. Apart from Technical Textiles Business, in which it enjoys a global leadership position, SRF
is a domestic leader in Refrigerants, Engineering Plastics and Industrial Yarns as well.
The Company also enjoys a significant presence among the key domestic manufacturers of Polyester
Films and Specialty Chemicals. Building on its in-house R&D facilities for Chemicals Business and
Technical Textiles Business, the company strives to stay ahead in business through innovations in
operations and product development. 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 the TQM as its management way.
For further information please contact

Mukund Trivedy
Head of Corporate Communications
SRF Limited
Mobile: +919871709177
Email: [email protected]
26
Anoop Poojari / Karl Kolah

CDR India
Tel: +91 22 6645 1211 / 1220
Email: [email protected]; [email protected]
Thank you

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SRF Limited

Q3 & 9M FY16 Results Presentation

Q3 & 9M FY16 Results Overview

Q3 & 9M FY16 Results Overview

Results Overview Financial Overview

Net Operating Revenue

Results Overview Financial Overview

Net Debt to Equity

Net Debt to EBITDA

Results Overview Revenue & EBIT

EBIT (Rs. crore)

Revenues (Rs. crore)

EBIT (Rs. crore)

Results Overview Revenue Share

Q3 & 9M Segmental Overview

Technical Textiles Results Update

Technical Textiles Key Highlights

Radialisation trend in the domestic market expected to grow

Manali plant being revived in phases

SRF did reasonably well in the off season

Domestic demand for belting fabrics remained low

Q3 & 9M Segmental Overview

Chemicals & Polymers

Chemicals & Polymers

HCFC-22 export selling price under pressure

SRF improved its market share significantly in HFC Blends

Specialty Chemicals business

Agro Industry remains under pressure globally

SRF focus on pharmaceutical intermediates yielding good results

Q3 & 9M Segmental Overview

Packaging Films Business

The business continued to post good results

Q3, the best ever quarter for South Africa

Pressure on margins expected to continue globally

Chemicals & Polymers

Tyre cord fabrics

(nylon & polyester)

Films for Flexible Packaging

Consolidated, FY15 figures in Rs. Crore

Driving Innovation through R&D

The Chemicals Technology Group (CTG) is actively

Key focus on the niche area of fluorinated molecules

Strong internal competencies and capabilities

Equipped with state-of-the-art R&D facilities and an

2 R&D centres in India

Filed 14 process patents during FY2016 taking the tally to

Technical Textiles Business

NTCF is expected to remain a key business

Demand for NTCF to mirror Indian GDP

Improving macroeconomic environment to

have a positive impact on coated and

Chemicals & Polymers Business

Future potential and prospects of the

Focus on expanding range of specialty

Ongoing investments in R&D leading to a

Packaging Films Business

Driven by the robust FMCG growth and fast

Focus on having efficient cost structures,

more value-added products in the portfolio