SRF Q3 Results Review - Staying Ahead Of The Curve: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.SRF Ltd. delivered yet another earnings beat in Q3 FY23 (Ebitda growth ahead of consensus in nine out of last 11 quarters), wherein consolidated Ebitda came in ~10% above our estimate. A strong operating performance despite multiple headwinds in the commodity segments was driven by a robust performance of specialty chemicals and fluorochemicals businesses (ref gases and chloromethanes). Strong traction in new and existing products and robust demand outlook from overseas clients are the key drivers for specialty chemicals segment whereas growth in fluorochemicals was led by higher realisations in select hydrofluorocarbons, strong domestic demand and better visibility in the U.S. market. The SRF management indicated that specialty chemicals segment’s revenue growth in FY23 should be significantly ahead of the earlier guidance of ~20%. The packaging segment is expected to be under pressure in the near term on account of spread contraction, especially in BOPET. However, overall packaging segment margin should improve in FY24 from the current levels, adjusted for normalisation of Europe energy costs and other operating measures, as per the management. It also announced fresh capex in the specialty fluoropolymers space to the tune of Rs 5.95 billion and has termed it as a strategic investment..Click on the attachment to read the full report:.SRF Q3 Results Review - Specialty Chemical Continues To Influence Numbers: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SRF Q3 Results Review - Staying Ahead Of The Curve: Nirmal Bang

A strong performance despite multiple headwinds in the commodity segments was driven by specialty chemicals, fluorochemicals.

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