The rally in SRF was on a high volume of 22.1 lakh shares on BSE.
The scrip of SRF had risen 17.1% to Rs 139.65 on Monday (9 April), boosted by the news of the company raising large money from the sale of carbon credits in the last financial year.
The scrip of SRF had declined sharply in the market fall during the period from early February 2007 to early March 2007, when traders offloaded derivative positions in the counter. From Rs 204.85 on 5 February 2007, it had tumbled to Rs 116.70 on 6 March 2007. The scrip moved in a tight band of Rs 116 – Rs 126, from 7 March to 5 March.
SRF has been one of the early movers in India to cash in on the carbon emission trading (CET) opportunity. Under the Kyoto Protocol, industries in developed countries can offset carbon dioxide emissions by buying carbon credits from projects that cut emissions in developing countries.
SRF’s solid surge in net profit in Q3 December 2006, was due to a huge revenue of Rs 122.28 crore from the sale of carbon credits. Its net profit jumped 417.8% to Rs 70.11 crore from Rs 13.54 crore. Net sales rose 11% to Rs 328.08 crore.
SRF has just finished doubling its capacity to produce engineering plastic, which finds varied application in several industries from auto component to electrical appliances to mobile handsets.
SRF is also banking big on coated fabrics. It is looking at procuring technology from abroad to stay ahead of the competition in this business.
SRF produces refrigerant gases — Fluorochemicals and Chloromethanes — which are used for refrigeration and air-conditioning. SRF has also formed a joint venture (JV) for making anhydrous hydrogen fluoride in China. The project will cost $9 million.