SRF Ltd. — Interim / Quarterly Report 2025

Jul 24, 2024

The Corporate Relationship Department, BSE Limited Ist Floor , New Trading Ring Rotunda Building, P.J. Towers Dalal Street,

National Stock Exchange of India Limited “Exchange Plaza” Bandra-Kurla Complex Bandra (E)

Mumbai 400 051

Mumbai 400 001

Scrip Code- 503806

Scrip Code-SRF

SRF/SEC/BSE/NSE

24.07.2024

Dear Sir,

Presentation- Earnings Call (Un-Audited Financial Results for the quarter ended 30.06.2024)

In continuation of our letter dated 18[th] July, 2024 informing about hosting of earning call to discuss UnAudited financial results for quarter ended 30[th] June, 2024, 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 Digitally signed by RAJAT LAKHANPAL LAKHANPAL Date: 2024.07.24 12:48:18 +05'30' RAJAT LAKHANPAL

Sr. VP (CORPORATE COMPLIANCE) & COMPANY SECRETARY

Encl: As above

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Q1 FY25 Results Presentation

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July 24, 2024

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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 forwardlooking 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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Table of Contents

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02

Q1 FY25 Results Overview

Company Overview

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Outlook

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Q1 FY25 Segmental Performance

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COMPANY OVERVIEW

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Snapshot

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4 100+ 16 ~9,000 CountriesCountriesManufacturing Global Operations Exports Facilities Workforce ₹ 13,139 cr. ₹ 2,744 cr. ₹ 1,336 cr. Revenue EBITDA PAT

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34% Packaging Films

18% Technical Textiles & Others

48% Chemicals

Note: On Consolidated basis as on 31st March 2024

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Overview - Business Profile

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• No of Plants - 2 Specialty Chemicals Fluorochemicals • • Intermediates for AI/API/Specialized Refrigerants

• EBIT - ₹ 1,627 cr. • Applications

• Revenue - ₹ 6,297 cr. • Contract Development & Manufacturing

• Refrigerants • Industrial Chemicals

• • Pharma Propellants • Fluoropolymers

Chemicals No of Plants - 8 Films for Flexible Packaging EBIT - ₹ 207 cr. • • Bi-axially Oriented Polypropylene (BOPP) Packaging Revenue - ₹ 4,489 cr. • Aluminium Foil Films No of Plants - 4 • Tyre Cord Fabrics (Nylon & Polyester) EBIT - ₹ 274 cr. • Belting Fabrics Technical • Polyester Industrial Yarn Revenue - ₹ 1,898 cr. Textiles

• Bi-axially Oriented Polyethylene Terephthalate (BOPET)

• Bi-axially Oriented Polypropylene (BOPP)

Others No of Plants - 2 • Coated Fabrics EBIT - ₹ 93 cr. • Laminated Fabrics Revenue - ₹ 465 cr.

Note: On Consolidated basis as on 31st March 2024

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Manufacturing Facilities

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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 -

3. a. Manali

4. b. Gummidipoondi

5. c. Viralimalai

PACKAGINGFILMS

5 National Operations

1. Uttarakhand, India - Kashipur

2. Madhya Pradesh, India -

3. a. Special Economic Zone (SEZ)

4. b. Bagdoon, Pithampur

5. c. Industrial Growth Centre, Pithampur

6. d. Jetapur

3 International Operations

1. KwaZulu - Natal, South Africa

2. Rayong, Thailand

3. Jaszfenyszaru, Hungary

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LAMINATEDFABRICS
1 National Operation
1. Uttarakhand, India - Kashipur
1
1 1 COATED FABRICS
1 1 1 National Operation
1
1. Tamil Nadu, India - Gummidipoondi
1
2a 1
2 2b2c 2
2d a2b
2c
2d
International Operations
1 1
2b 2 4
2a 2a b 3 5
2c 2
c
South Africa Thailand Hungary
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Market Leadership Across Businesses

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01
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Specialty Chemicals

• Established relationship with marquee customers

• Strong tech capability – pilot to commercial; creating value through operational excellence

• Driving customer engagement and satisfaction through world class R&D, EHS and quality management

• Handling complex reactions -Halogenation, Ethylation, Hydrogenation, Nitration, Diazotization, Grignard, Cyanation, Isomerization, Amination, Organocatalysis and Decarboxylation

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Fluorochemicals

• Unique and fully integrated facilities extending across a wide range of refrigerants and industrial chemicals

• Domestic leadership in HFC’s with strong trade distribution network; significant market share of Fluorochemicals in India with global scale operations

• One of the few global manufacturers of Pharma grade 134a/P - propellant in metered dose inhalers

• Among the top five global manufacturers of key Fluorochemical products

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Packaging Films

• 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 offering value added products near customer locations

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Technical Textiles

• Domestic market leader in Tyre Cord manufacturing and Belting Fabrics

• ~40% share in India’s Nylon Tyre Cord market. 5th largest player globally

• 2nd largest manufacturer of Conveyor Belting Fabrics in the world

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Growth Levers

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Focus on building high-end value-added products

Continue to build new competencies in the Chemicals Technology space

Focus on building leadership businesses

Build and maintain market leadership in business segments

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Build a Company known and respected for its R&D capabilities

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

Nurture innovation through R&D

Reposition portfolio towards knowledge-based products

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Q1 FY25 RESULTS OVERVIEW

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Abridged Results Overview

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Consolidated figures

Particulars (Rs. Crore)	Q1 FY25	Q1 FY24	% Y-o-Y
Gross Operating Revenue	3,464.1	3,338.4	3.8%
EBITDA	645.9	731.7	-11.7%
EBITDA Margin (%)	18.6%	21.9%
Depreciation	188.2	156.6	20.1%
Interest	96.5	65.6	47.1%
ECF (Gain) / Loss	17.2	23.7
Profit Before Tax	344.0	485.8	-29.2%
Profit After Tax	252.2	359.3	-29.8%
Profit After Tax Margin (%)	7.3%	10.8%
Basic and Diluted EPS (Rs.)	8.51	12.12

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Results Overview - Financial Overview

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Consolidated figures

Key Financial Ratios

Particulars	FY15	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24
EBITDA Margin	20.43%	22.13%	21.42%	17.69%	19.00%	20.90%	26.05%	25.30%	24.94%	20.88%
PAT Margin	8.78%	9.51%	10.87%	8.38%	8.33%	12.70%	14.26%	15.19%	14.54%	10.17%
Net Debt to Equity	0.98	0.71	0.67	0.82	0.83	0.76	0.39	0.32	0.32	0.35
Net Debt to EBIDTA	2.83	1.97	2.11	3.01	2.42	2.48	1.24	0.87	0.88	1.45
Asset Turnover	0.77	0.70	0.68	0.66	0.72	0.66	0.65	0.79	0.79	0.64
Debtors Turnover	7.43	8.79	7.21	8.10	6.90	8.09	6.64	6.94	8.33	6.76

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Results Overview - Revenue Share

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Q1 FY25 Q1 FY24
Total – 3,469.8 Crs. Total – 3,338.7 Crs.
126.2 118.7
525.3 3.6% 464.7
3.6%
15.1% 13.9%
42.7% 1,482.0 1,660.5
49.7%
32.8%
38.5%
1,094.8
1,336.3
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CB

PFB

TTB Others

CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others

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Results Overview - EBIT Share

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Q1 FY25 Q1 FY24
Total – 484.4 Crs. Total – 595.2 Crs.
23.2
23.6
60.7
4.9%
67.7 3.9%
10.2%
14.0%
51.3
8.6%
17.9%
86.8
63.2%
77.3%
306.4
460.1
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CB

PFB

TTB Others

CB – Chemicals Business; PFB - Packaging Films Business; TTB – Technical Textiles Business; Others

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Q1 FY25 - SEGMENTAL PERFORMANCE

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CHEMICALS BUSINESS

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Chemicals Business - Results Update

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Consolidated figures

PARTICULARS	Q1 FY25	Q1 FY24	% Y-o-Y
Segment Revenues	1,482.0	1,660.5	-10.8%
% Contribution to Revenues	42.7%	49.7%
EBIT	306.4	460.1	-33.4%
% EBIT Margins	20.7%	27.7%
% Contribution to EBIT	63.3%	77.3%

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Chemicals Business

Specialty Chemicals Business

Key Highlights

Market Trends

• Inventory rationalization trends continued in Agro chemicals market, impacted performance ➢ To prioritize process improvements and cost efficiencies through tech breakthroughs as margin improvement initiatives

• • Focus on ramp-up of multiple new plants commissioned in FY’24

• Agrochemical companies continue to focus on inventory rationalization

• Demand subdued for certain key Agro intermediates

• Focus on ramp-up of multiple new plants • Chinese manufacturers continued pushing cheaper Agrochemicals and intermediates in the market

• commissioned in FY’24

• • Multiple AIs in advanced stages of • India's momentum as a key specialty chemicals manufacturing base remains fundamentally strong

• commercialization; to contribute to future growth

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Chemicals Business

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

• 2 new process patents granted in Q1FY25

151 Global Patents granted

451

Patents applied

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Chemicals Business

Fluorochemicals Business

Key Highlights

• Refrigerant gases performed well in the domestic market

• ➢ HFC volumes witnessed significant growth over CPLY

• ➢ Demand for Dymel®/ Pharma propellant remained strong

Market Trends

• Global Ref gas demand expected to remain stable to strong, with growth in India and the Middle East, while the US market may see a decline due to reduced HFC consumption

• Implementation of Chinese HFC quotas and consumption growth should help stabilize Ref gas prices

• Witnessed reduced volumes and pricing of R125 in the US market

• Key raw material prices were stable

• CMS products continue to witness pricing pressures due to agro chemical demand being weak; pulling down the overall performance

• PTFE gaining traction in domestic market; work on free flow and fine cut grades continuing as planned

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PACKAGING FILMS BUSINESS

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Packaging Films Business - Results Update

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Consolidated figures

PARTICULARS	Q1 FY25	Q1 FY24	% Y-o-Y
Segment Revenues	1,336.3	1,094.8	22.1%
% Contribution to Revenues	38.5%	32.8%
EBIT	86.8	51.3	69.1%
% EBIT Margins	6.5%	4.7%
% Contribution to EBIT	17.9%	8.6%

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Packaging Films Business

Key Highlights

Market Trends

• BOPET witnessed some pricing improvement towards end of June; however supply still far exceeds demand

• Higher BOPP margins due to balanced demandsupply scenario

• Significant increase in VAP sales over CPLY

• Aluminium foil export sampling under way; anticipate ramp-up towards H2

• Significant global demand-supply gap remains due to new BOPP and BOPET lines being commissioned in China and India

• BOPP demand continues to benefit from sustainability related actions

• Freight costs witnessed significant uptrends due to shipping line challenges

• Severe competition from Chinese players likely to continue in South-East Asia

• Continue to focus on optimizing product mix and cost efficiencies, increase VAP sales and new product development to counter market challenges

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TECHNICAL TEXTILES BUSINESS

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Technical Textiles Business - Results Update

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Consolidated figures

PARTICULARS	Q1 FY25	Q1 FY24	% Y-o-Y
Segment Revenues	525.3	464.7	13.1%
% Contribution to Revenues	15.1%	13.9%
EBIT	67.7	60.7	11.6%
% EBIT Margins	12.9%	13.1%
% Contribution to EBIT	14.0%	10.2%

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Technical Textiles Business

Key Highlights

Market Trends

• Segment performance was steady with healthy volumes reported in Nylon Tyre Cord Fabrics (NTCF) and Polyester Industrial Yarn (PIY)

• Demand for NTCF and PIY remained strong, while demand for BF declined

• ➢ Continued emphasis on highermargin value-added sales

• 2/3-wheeler vehicle segment witnessed robust growth

• Lower volumes witnessed in Belting Fabrics (BF)

• Enhanced use of renewable energy

• Dipping and BF capacity expansion projects progressing as planned

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OTHER BUSINESSES

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Others - Results Update

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Consolidated figures

PARTICULARS	Q1 FY25	Q1 FY24	% Y-o-Y
Segment Revenues	126.2	118.7	6.3%
% Contribution to Revenues	3.6%	3.6%
EBIT	23.6	23.2	1.8%
% EBIT Margins	18.7%	19.5%
% Contribution to EBIT	4.9%	3.9%

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Others - Key Highlights

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Coated Fabrics
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Laminated Fabrics

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• SRF retained its leadership in domestic market in volume & price

• Achieved record domestic sales during the quarter, with strong demand anticipated in Q2 due to seasonal trends

• Business aims to improve profitability by enhancing domestic volumes through VAPs and expanding in new segments

• Business maintained its price leadership by selling at full capacity

• Oversupply situation continues; putting pressure on margins

• Expect demand slowdown for outdoor campaigns in Q2 due to monsoons

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SRF’s

Community Engagement

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• A 45-day summer camp was organised by the SRF Foundation Dhar team in 10 schools, with the aim to support the development of children during summer holidays. We involved volunteers from the community. They operated a camp and carried out activities such as yoga, art and craft, pot painting, clay modelling, storytelling, cooking without fire, science model making, etc. In addition, we arranged guest sessions for the students

• SRF Foundation has completed three batches of the Basic Computer Literacy Course for students above 14 years old. 65 students have benefited from the course.

• SRF Foundation trained 50 unemployed youth in electrical skills for 4 months in two batches. They finished the BETP program in April 2024. 25 of them began working as electricians, shopkeepers, or electrical entrepreneurs

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OUTLOOK

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Outlook - Chemicals Business

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Specialty Chemicals

Agrochemicals segment likely to show improvement; demand to pick up gradually Work on AIs progressing as per plan Product funnel remains strong Launch of new pharma intermediates and ramp up of recently commissioned facilities to drive growth Tech interventions in reducing costs / steps for certain key products should counter-balance pricing pressure

Fluorochemicals

Focus on maximizing HFC production SRF’s integrated play provides significant advantages CMS demand and prices likely to be stable; creating export ability to offset pricing pressure PTFE should witness traction around value added grades in H2 FY25 New HF plant commissioning in Q2; should provide cost advantages post-stabilization

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Outlook - Packaging Films Business

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Expect ongoing demandsupply imbalance and margin BOPP to perform relatively pressure to continue in BOPET better Newly commissioned Ramp-up in sales of identified Aluminium Foil facility to VAPs in both BOPET and BOPP contribute positively to the overall performance in FY25

Hungary expected to perform South Africa to continue better, owing to increased sales performing well to Mainland Europe

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Outlook - Technical Textiles Business

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Demand for NTCF likely to be stable

Focus on high-end VAPs in BF and expanded capacity to be the future growth drivers

Polyester and Nylon Industrial Yarn sales witnessing positive trends

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About Us

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