Chennai, Jan 23 (UNI) SRF Ltd, the market leader in tyre cord and refrigerant gases, reported nine per cent decline in revenue from Rs 453 crore and net profit by 51 per cent from Rs 70 crore on a year-on-year basis.
The downfall in profits was due to the factor that last year's figures included effect of higher sales of accumulated CERs (Certified Emission Reductions), a company release here today said.
Appreciation of Indian Rupee against the US Dollar from an average of Rs 44.95 during Q3 of 2006-07 to Rs 39.44 during Q3 of 2007-08, an appreciation of about 12 per cent, had also contributed to the adverse results, the release said.
Though the company had posted PAT of Rs 34 crore on revenue of Rs 413 crore during the third quarter of the current financial year, PAT for the first nine months of 2007-08 was down by 42 per cent and revenue was lower by 11 per cent when compared to the corresponding period last year.
During Q3 of 2007-08, the company had recorded significant improvement in sales due to increased operational and marketing efficiencies.
SRF's Technical Textile Business (TTB), which accounted for more than 50 per cent of the total revenue and registered 9.8 per cent growth in products' sales, moved up from 12,241 metric tonnes in Q3 of 2006-07 to 13,445 MT in Q3 of current fiscal. This should enable the company to increase its market share from 36 per cent to around 39 per cent by the end of the current fiscal, the release said.
In Packaging Film Business (PFB), SRF's renewed focus on producing value-added products led to an increase of 9.7 per cent in total sales. Export of the company's PFB products had increased from 2,989 MT to 3,548 MT, showing a growth of 18.7 per cent, the release added.
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