SRF reports 24% decline in Q4 net profit to Rs 422 crore, revenue down 5%

SRF is a multi-business chemicals conglomerate engaged in the manufacturing of industrial and specialty intermediates

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Chemicals maker SRF Ltd on May 7 reported a 24 percent year-on-year (YoY) decline in consolidated net profit at Rs 422 crore for the fourth quarter of FY24.

In the previous corresponding quarter, the company posted a net profit of Rs 562 crore, it said in a regulatory filing.

Its revenue from operations dipped 5 percent to Rs 3570 crore as against Rs 3778 crore a year back.

At the operating level, EBITDA tanked 25 percent to Rs 696 crore as against Rs 932 crore last fiscal. EBITDA margin stood at  19.5 percent as compared to  24.6 percent in the same period a year ago.

“While the general performance has been weak, we have seen a reasonable recovery in our Chemicals Business in the fourth quarter, as we had envisaged. We believe that this recovery will pick up pace in the second half of FY25,” said Chairman and Managing Director, Ashish Bharat Ram in a press statement.

The Chemicals Business reported a decline of 14 percent in its segment revenue from Rs2,102 crore to Rs 1,816 crore during Q4FY24 over corresponding period last year .

During the quarter, the Specialty Chemicals Business continued to face headwinds due to inventory rationalization by certain key customers, while performing better than Q3FY24, the company said.

In addition, a lot of capacity has come up in China, leading to pricing pressure on intermediate products. The performance of the Fluorochemicals Business was adversely impacted owing to Chinese dumping of refrigerants in India and the international markets, leading to pricing pressure and some impact on volumes.

In addition, sluggish growth in the agrochemical and pharmaceutical industries adversely impacted the demand for some key industrial chemicals. On the positive side, the Business continues to increase market share in the Dymel/propellant vertical in both the domestic and international markets, entering new geographies and broadening customer base.

At 3:25 pm, the stock was trading at 2412.70 on NSE, down 6.76 percent from the previous day.

SRF is a multi-business chemicals conglomerate engaged in the manufacturing of industrial and specialty intermediates. Incorporated in 1970, SRF started operations with a Nylon Tyre Cord plant in Manali, Tamil Nadu. It is currently present in CB (chemicals business), PFB (packaging films business) and TTB (technical textiles business) along with some more business verticals with a revenue contribution of 50 percent, 35 percent and 13 percent and 2 percent, respectively, in fiscal 2023.