SRF Q3 Results: Profit Rises 7%, Beats Estimates

SRF Ltd.'s consolidated net profit rose 7% in the third quarter of fiscal 2025, beating analysts' estimates.

The chemical manufacturer's bottom line stood at Rs 271 crore in the quarter ended Dec. 31, 2024, according to an exchange filing on Wednesday. That compares with the Rs 235-crore consensus estimate of analysts tracked by Bloomberg.

SRF Q3FY25 Result Highlights (YoY)

• Revenue up 14.4% at Rs 3,491 crore versus Rs 3,053 crore (Bloomberg estimate: Rs 3,398.5 crore).

• Ebitda up 9.5% at Rs 620 crore versus Rs 566 crore (Estimate: Rs 580.4 crore)

• Ebitda margin at 17.7% versus 18.5% (Estimate: 17.1%)

• Net profit up 7% at Rs 271 crore versus Rs 253 crore (Estimate: Rs 235.9 crore)

SRF also announced that its board has approved a second interim dividend of Rs 3.6 per share. The record date for the dividend has been fixed as Feb. 4, and the payment will be made to the eligible shareholders on or before Feb. 27.

Previously, on July 23, the company's board had approved the first interim dividend at the same rate of Rs 3.6 per share.

Meanwhile, commenting on the company's quarterly performance, SRF Chairman and Managing Director said, “We have seen a decent recovery this quarter. Building on the momentum, we expect to finish the year on a reasonably strong footing."

SRF's chemicals business logged a 7% increase in its segmental revenue to Rs 1,496 crore in the December quarter, from Rs 1,394 crore in the year-ago period. The operating profit increased 13% to Rs 364 crore from Rs 322 crore.

The specialty chemicals business continued to experience some overhang of inventory buildup among agrochemical customers. However, there appears to be a gradual increase in demand, the company said in a press release.

The fluorochemicals business received strong support for refrigerants from original equipment manufacturers in the domestic market. The chloromethanes segment also maintained stable performance during the quarter, it added.

SRF's packaging films business reported an increase of 27% in its segmental revenue to Rs 1,385 crore in the third quarter from Rs 1,091 crore in the year-ago period. The operating profit in this business doubled to Rs 90 crore, according to the release.

"During the quarter, the packaging films business demonstrated satisfactory performance. SRF maintained a strong position within the industry, although margins in Aluminium Foil experienced pressure due to lower-cost imports from China and Thailand," it said.

SRF's technical textiles business also reported an increase of 11% in its segment revenue from to Rs 510 crore in the December quarter from Rs 458 crore in the year-ago period. The operating profit, however, decreased 14% from Rs 69 crore to Rs 59 crore.

The business underperformed due to lower demand and margins in the belting fabrics segment, the company said. On the positive side, the polyester industrial yarn segment reached full capacity utilisation, it added.

SRF, in the release, also noted that results of the third quarter were "negatively affected" by the currency fluctuations driven by the strengthening of the US dollar.

Shares of SRF closed 2.18% higher at Rs 2,657 apiece on the NSE, compared to a 0.9% advance in the benchmark Nifty 50.