SRF Q2 Results: Profit Rises 93% On Sharp Climb In Chemical Business

SRF Ltd.'s profit in the second quarter of this financial year rose 92.7% to Rs 388 crore in quarter ended September.

This is in comparison to profit of Rs 201 crore in the same quarter of the previous fiscal, according to its stock exchange notification on Monday.

Revenue rose by 6.3% year-on-year for the three months ended September, reaching Rs 3,640 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 43.8% year-on-year to Rs 774 crore. The Ebitda margin expanded to 21.3%.

In addition the company also approved revised capex of Rs 745 crore for Specialty Fluoropolymers.

• Net Profit up 92.7% at Rs 388 crore versus Rs 201 crore.

• Revenue up 6.3% at Rs 3,640 crore versus Rs 3,424 crore.

• Ebitda advances 43.8% at Rs 774 crore versus Rs 538 crore.

• Margin at 21.3% versus 15.7%.

The chemicals business reported a 23% increase in segment revenue, from Rs 1,358 crore to Rs 1,667 crore during the second quarter. Operating profit rose by 96%, from Rs 246 crore to Rs 481 crore in the same period. The fluorochemicals business reported record sales volumes for refrigerants, with prices of key refrigerants witnessing positive traction.

The specialty chemicals business reported increased volumes for some of its products, while the introduction of new products also generated positive momentum.

On the other hand, the performance films and foil business experienced a marginal decline in segment revenue, decreasing from Rs 1,421 crore to Rs 1,408 crore during quarter ended September. Operating profit, however, recorded a significant increase of 44%, rising from Rs 83 crore to Rs 119 crore in the second quarter.

The technical textiles business also reported a decrease of 11% in the segment revenue from Rs 536 crore to Rs 474 crore during the second quarter. The operating profit of the segment also decreased 41% from Rs 71 crore to Rs 42 crore in the quarter under review. During the quarter, the business faced significant headwinds due to aggressive import pricing of Nylon Tyre Cord Fabrics and Belting Fabrics from China and low demand for Polyester Industrial Yarn.

The other businesses reported a decrease of 19% in its segment revenue from Rs 113 crore to Rs 91 crore in quarter ended September. The operating profit of the Other Businesses decreased 56% from Rs 17 crore to Rs 8 crore. During the quarter, the Coated and Laminated Fabrics segments reported lower performance due to certain prevailing market conditions.

The company on Monday also noted that the market experienced reduced volumes attributable to resizing and reprinting activities to GST reforms implementation in this quarter. These adjustments are expected to yield positive outcomes in the near future, it added in its press release.