SRF Q1 Results: Profit Falls 41%, Misses Estimates
SRF's Q1 revenue was down 14.28% at Rs 3,338.4 crore, while Ebitda margin was at 20.85% versus 25.54%.
SRF Ltd.'s net profit declined 40.9% in the first quarter of fiscal 2024, missing analysts' estimates.
The chemical manufacturer's profit fell to Rs 359.3 crore in comparison with Rs 608 crore in the year-ago period, according to its exchange filing on Monday. That compares with the Rs 436 crore consensus estimate of analysts tracked by Bloomberg. Sequentially, the profit plunged 36.12%.
SRF Q1 FY24 Highlights (YoY)
Revenue down 14.28% at Rs 3,338.4 crore against an estimated Rs 3,600 crore.
Ebitda down 30% at Rs 696.2 crore, as compared with the Rs 787.7 crore forecast.
Ebitda margin was 20.85% versus 25.54% over the same period last year.
Net profit of Rs 359.3 crore against an estimated Rs 436 crore.
While the firm has seen a significant drop in profit, a large portion is attributable to the expected downcycle of the packaging film business, said Ashish Bharat, chairperson at SRF. "This is expected to continue for the medium term," he said.
The chemicals business has been affected by lower sales in the firm's fluorochemicals business due to a "very mild summer" and general weakness in the industrial chemicals segment, according to Bharat.
The SRF chairperson said the specialty chemicals business performed as per the company's expectations, with growth seen over last year.
There is a lot of inventory unwinding going on globally, and this will have some impact on the business in the next couple of quarters, Bharat said. "On the positive side, the longer-term projects remain on track, and we expect to keep our capex momentum intact."
Shares of SRF were trading 3.20% lower at Rs 2,142 apiece, as compared with a 0.43% decline in the benchmark NSE Nifty 50 as of 3.29 p.m.
