SRF board approves capex worth ₹235 crore to produce an agrochemical intermediate at Dahej

SRF reported its September quarter results on Friday which missed estimates on most parameters. The company's EBITDA margin also missed estimates by 100 basis points.

Last quarter, the board had approved a capex of ₹16.08 crore to expand the capacity of Anhydrous Hydrogen Chloride that is used in pharma intermediates at the Dahej plant.

SRF's board had approved a capex plan worth ₹604 crore to set up four new plants for the agrochemical space in November last year. The capex was also meant to be spent on expanding capacity at its Dahej facility. The board has also approved a project to develop a Kilo Lab to address the needs of the pharmaceutical market at a cost of ₹9.8 crore.

Additionally, the company also mentioned that its PTFE project has been commissioned at an aggregate cost of Rs 489 crore. This is higher than the earlier approved capex of Rs 424 crore, which was approved in July 2020.

The cost overrun was attributed to an increase in civil and preoperative expenses and delays caused in obtaining support from the technology partner due to the Covid-19-related restrictions.

Shares of SRF have reversed losses from the day's low and are currently trading 0.9% higher at  ₹2,125.