SRF Limited Q1FY24 results show decline amidst challenging market conditions

SRF Limited, a multi-business entity specializing in the production of industrial and specialty intermediates, reported a 14% decline in its consolidated revenue in Q1FY24, from ₹3,895 crore to ₹3,338 crore, compared to the same period the previous year.

The Gurugram-based company also saw a significant drop in its Earnings before Interest and Tax (EBIT) and Profit after Tax (PAT), decreasing by 37% and 41% respectively.

According to Chairman and Managing Director Ashish Bharat Ram, a major part of the profit reduction is due to the expected downturn in the Packaging Films Business. The Chemicals Business was hit by lower sales due to a mild summer and general weakness in the industrial chemicals segment. Despite these challenges, the Specialty Chemicals Business performed as expected, showing growth over the previous year.

The Chemicals, Packaging Films, and Technical Textiles Businesses all reported declines in segment revenue and operating profit. The Other Businesses segment, however, saw a 12% increase in its segment revenue and a 243% increase in operating profit.

In terms of capital expenditure, the board has approved a project to expand the capacity of Anhydrous Hydrogen Chloride (AHCL), used in pharma intermediates, at Dahej. The projected cost for this expansion is ₹16.08 crore. In the same meeting, the board also approved an interim dividend at the rate of 36 percent, amounting to ₹3.60 per share.