SRF Limited Earnings Q2 FY25: Revenue Up 8%, PAT Falls 33%

SRF Limited, a chemicals-based multi-business company, has released its financial results for the second quarter (Q2) and half-year (H1) of FY25, ending September 30, 2024. The company’s Board approved the results of Directors at a meeting held earlier today.

Q2 FY25 Financial Results

SRF’s consolidated revenue for Q2 FY25 increased by 8%, reaching ₹3,424 crore, up from ₹3,177 crore in the same period last year. However, the company’s Earnings Before Interest and Tax (EBIT) dropped by 22%, from ₹533 crore to ₹417 crore. The Profit After Tax (PAT) also saw a significant decrease, falling 33% from ₹301 crore to ₹201 crore.

Q2 FY25 Segment Results

• The Chemicals Business reported a 5% drop in revenue, down to ₹1,358 crore from ₹1,426 crore. Its operating profit fell by 29%, from ₹348 crore to ₹246 crore. While the Specialty Chemicals Business gained momentum with new products, some key products saw lower demand due to customer inventory issues. The order book looks solid for the year’s second half, with better performance expected.
• The Fluorochemicals Business performed well in the domestic market, with increased volumes. However, reduced export earnings affected margins. The business anticipates better results in the second half of the year as export volumes increase and domestic demand picks up.
• In Q2 FY25, SRF Limited’s Packaging Films Business saw a 27% rise in revenue, reaching ₹1,421 crore compared to ₹1,122 crore in the same period last year. Operating profit for this segment increased by 7%, from ₹77 crore to ₹83 crore. Improved margins for BOPET films in India contributed to this growth, although Thailand’s operations were still impacted by competition from Chinese imports. The BOPP film segment performed as expected.
• The Technical Textiles Business reported a 6% increase in revenue, from ₹506 crore to ₹536 crore in Q2 FY25. However, its operating profit dropped by 5%, from ₹75 crore to ₹71 crore. The business benefited from higher sales of its key Nylon Tyre Cord Fabric and good demand for Polyester Yarn. However, lower demand and margins in the Belting Fabrics segment affected overall performance.
• SRF’s Other Businesses saw a decline of 11% in revenue, down to ₹113 crore from ₹127 crore, with operating profit falling 48%, from ₹33 crore to ₹17 crore. The Coated and Laminated Fabrics segments performed as expected during the quarter.

For the first half of FY25 (H1), SRF’s total revenue increased by 6%, reaching ₹6,888 crore compared to ₹6,516 crore in the same period last year. However, Profit After Tax (PAT) dropped 31%, from ₹660 crore to ₹454 crore.

On October 22, 2024, SRF Ltd‘s share price opened at ₹2,258.80 and closed at ₹2,203.90.

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