SRF Records 14% Decline In Consolidated Revenue In Q1

SRF, a chemical-based multi-business entity recorded a 14 per cent decline in consolidated revenue from Rs 3,895 crore to Rs 3,338 crore in Q1FY24 compared with the last year.

The company’s Earnings before Interest and Tax (EBIT) decreased 37 per cent from Rs 938 crore to Rs 595 crore and Profit after Tax (PAT) dropped 41 per cent from Rs 608 crore to Rs 359 crore in Q1FY24 year on year.

The Chemicals Business reported a decline of 4 per cent in its segment revenue from Rs 1,722 crore to Rs 1,661 crore. The operating profit of the Chemicals Business decreased 12 per cent from Rs 520 crore to Rs 460 crore.

During the first quarter, the Specialty Chemicals Business performed well despite weak global demand and ongoing inventory rationalisation. The performance of the Fluorochemicals Business was impacted due to mild summers in India, resulting in sluggish demand for refrigerant gases. In addition, stagnant pharmaceuticals and agrochemical industries adversely impacted the demand for some industrial chemicals.

The Packaging Films Business reported a decline of 27 per cent in its segment revenue from Rs 1,496 crore to Rs 1,095 crore. The operating profit of the Packaging Films Business decreased 83 per cent from Rs 295 crore to Rs 51 crore. During the quarter, the Business faced headwinds on account of significant supply addition in the BOPET and BOPP film segments and a global economic slowdown.

The Technical Textiles Business reported a decline of 19 per cent in its segment revenue from Rs 571 crore to Rs 465 crore. The operating profit of the Technical Textiles Business decreased by 48 per cent from Rs 116 crore to Rs 61 crore. The results of the Technical Textiles Business were impacted, largely on account of margin correction with some Nylon Tyre Cord Fabric (NTCF) customers.

However, the board of directors approved, an interim dividend at the rate of 36 per cent, amounting to Rs 3.60 per share was approved.