Chemical and packaging company SRF is expected to report profit at Rs 123 crore for April-June quarter, down 15 percent compared with Rs 144 crore in same quarter last year. Profitability may be hit by operational weakness.
Revenue during the quarter is seen rising 9 percent to Rs 1,416 crore from Rs 1,299 crore on year-on-year basis, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit is likely to decline 13 percent year-on-year to Rs 252 crore and margin may contract by 400 basis points to 18 percent in June quarter.
Negative operational leverage is seen in chemical business that may see pressure as guided by the company.
Analysts expect drop in margins across three businesses on a YoY basis. Specialty chemical business’ growth is likely to remain muted.
Packaging films segment may see a volume uptick due to new capacities.
SRF is engaged in the business of fluorochemicals, specialty chemicals, engineering plastics, packaging films and technical textiles.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
