SRF Ltd, an Indian chemicals manufacturer announced its results for the third quarter and nine months ended Dec 31, 2022.
Q3 Results- QoQ
The company’s net profit grew by 6.24% to Rs 5.11 billion for the period ended Dec 31, 2022 as against net profit of Rs 4.81 billion for the previous quarter.
Net sales decreased 6.9% to Rs 34.69 billion during the period ended Dec 31, 2022 as compared to Rs 37.27 billion during the previous quarter.
Q3 Results- YoY
The company reported 1.19% increase in net profit to Rs 5.11 billion for the period ended Dec 31, 2022 as against net profit of Rs 5.05 billion for the prior-year quarter.
Net sales grew 3.7% to Rs 34.69 billion during the period ended Dec 31, 2022 as compared to Rs 33.45 billion during the prior-year quarter.
The chemicals business reported a 23% increase in segment revenue to Rs 17.57 billion from Rs 14.28 billion in Q3 FY23. The specialty chemicals business performed exceptionally well during the quarter, according to the company, due to strong demand for certain key products and their derivatives from overseas markets and higher capacity utilisation of dedicated/multipurpose facilities. Several new plants that were put into service during the year aided the overall performance.
The fluorochemicals business performed well in the third quarter, thanks to higher prices for key refrigerant products in key international markets and increased domestic volumes of HFCs and blends. Furthermore, a healthy contribution from the chloromethanes segment boosted overall results, according to the company.
When compared to the prior year quarter, the packaging films business reported a 6% decrease in segment revenue to Rs 12.03 billion from Rs 12.76 billion during Q3 FY23. The company that this arm represents faced challenges due to significant supply addition in the BOPET and BOPP film segments in India, a global demand slowdown, and high energy costs in Europe. Margin pressure is expected to persist as the excess supply scenario in BOPET is unlikely to change in the near term.
Furthermore, the company’s board of directors has approved a project to build a new and dedicated facility in Dahej to produce an agrochemical intermediate at a cost of Rs 1.10 billion in order to meet future demand for the product. This project is scheduled to be completed in 10 months.
Furthermore, to meet the growing needs of new and upcoming plants in Dahej, the board of directors has approved a project to build a structure for a new plant building at a cost of Rs 400 million.
Ashish Bharat Ram, chairman and managing director said, “In spite of the expected weakness in our packaging films and technical textiles businesses, the company has done well. The performance of our chemicals business remains strong and the continuing investments in this segment are a testament to our confidence going forward.”
9 Months – YoY
The company reported 24.6% growth in net profit to Rs 15.99 billion for the period ended Dec 31, 2022 as against net profit of Rs 12.83 billion for the prior-year 9 months period.
Net sales increased 24.8% to Rs 110.92 billion during the period ended Dec 31, 2022 as compared to Rs 88.84 billion during the 9 months period last year.
SRF Ltd is a leading player in the Indian chemical industry engaged in the manufacture and sale of fluorochemicals, specialty chemicals, packaging films, technical textiles, coated and laminated fabrics.