Earnings Review
SRF PAT beats Street view, aided by higher volume, prices
This story was originally published at 17:39 IST on 12 May 2025
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--SRF Jan-Mar consol net profit INR 5.26 bln
--Analysts saw SRF Jan-Mar consol net profit INR 4.82 bln
-SRF Jan-Mar consol net profit INR 5.26 bln vs INR 4.22 bln year ago
--SRF Jan-Mar consol revenue INR 43.13 bln vs INR 35.70 bln year ago
--SRF FY25 consol net profit INR 12.51 bln vs INR 13.36 bln year ago
--SRF FY25 consol revenue INR 146.93 bln vs INR 131.39 bln year ago
--SRF Jan-Mar chemical ops revenue INR 23.55 bln vs INR 18.16 bln year ago
--SRF Jan-Mar performance films, foil revenue INR 14.12 bln vs INR 11.82 bln
--SRF Jan-Mar consol EBIT INR 9.06 bln, up 47% on year
--SRF Jan-Mar chemicals business operating profit INR 7.48 bln, up 50% YoY
--SRF Jan-Mar performance films, foil operating profit INR 1 bln, up 216% YoY
--SRF: Applied for 481 patents as of Mar 31
By Shreya Shetty
MUMBAI – SRF Ltd. reported better-than-expected profit growth in the March quarter due to strong refrigerant pricing and improved volumes in its core chemicals business. The company's net profit rose nearly 25% on-year to INR 5.26 billion, beating the Street's predictions of INR 4.82 billion. Sequentially, the net profit almost doubled. The last time the company's net profit growth was higher was in the September quarter of 2022, when the profit had increased by 26%.
The company's consolidated revenue grew nearly 21% on-year to INR 43.13 billion. Analysts had estimated the company to report a revenue of INR 40.56 billion. Sequentially, the company's net profit rose 94% and revenues grew nearly 24%.
However, the company's bottom line for 2024-25 (Apr-Mar) fell 6.4% to INR 12.51 billion, though the top line rose nearly 12% to INR 146.93 billion.
The company's earnings before interest and tax for Jan-Mar rose 47% on-year to INR 9.06 billion.
The company's total expenses for the March quarter increased nearly 16% to INR 36.40 billion. The company's cost of materials, which accounts for more than 50% of the total expenses, increased by more than 11% on-year to INR 19.95 billion.
The company spent INR 3.34 billion on its power and fuel expenses, up nearly 2% on-year. Its employee benefits expense went up by 12% on-year to INR 2.76 billion.
The company's chemical business revenue rose by 30% on year to INR 23.55 billion in the March quarter, while the operating profit rose 50% on year to INR 7.48 billion. The rise was driven by positive momentum in recently launched products and a pick-up in demand for certain key agrochemical intermediates, the company said. "Our cost-competitive pricing strategies, along with robust export market performance, further contributed to revenue growth," the company said. Refrigerant gases like R-32 and R-22 have seen firm prices, supported by domestic demand and pre-emptive stocking from overseas customers ahead of the implementation of tariffs by the US.
The performance of its fluorochemicals business was also robust due to strong domestic demand for refrigerants, particularly for room air conditioners, resulting in record-high domestic sales of refrigerant gases, the company said.
SRF's revenue from the films and foil business rose by 19% on-year to INR 14.12 billion. The operating profit rose a whopping 216% on-year to INR 1.00 billion in the March quarter. Margins improved for variants such as biaxially oriented polypropylene and biaxially oriented polyethylene terephthalate due to increased capacity utilisation driven by rising demand.
The company's technical textiles business revenue reported a fall of 2% on-year to INR 4.58 billion in the fourth quarter. The operating profit of the business fell 43% on-year to INR 400 million. During the quarter, the demand for polyester tyre cord fabric and polyester industrial yarn remained robust, while volumes of nylon tyre cord fabric were flat, the company said. The performance of belting fabrics was affected by the influx of low-cost imports from China, which impacted the overall performance of the business. "On a positive note, we successfully commissioned the full capacity expansion for belting fabrics during the March quarter," the company said.
The company has applied for a total of 481 patents as of Mar. 31, it said. The company has so far been granted 151 patents globally.
On Monday, shares of the company closed 0.3% higher at INR 3,014.5 on the National Stock Exchange. The company announced results just before the market closed for the day. End
US$1 = INR 85.37
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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