Earnings Review
SRF consol PAT beats view, up 71% YoY as chemicals ops shine
This story was originally published at 18:36 IST on 23 July 2025
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--SRF Apr-Jun consol net profit INR 4.32 bln
--Analysts saw SRF Apr-Jun consol net profit at INR 4.02 bln
--SRF Apr-Jun consol net profit INR 4.32 bln vs INR 2.52 bln year ago
--SRF Apr-Jun consol revenue INR 38.19 bln vs INR 34.64 bln year ago
--SRF Apr-Jun chemical business sales INR 18.39 bln vs INR 14.82 bln yr ago
--SRF Q1 performance films, foil ops sales INR 14.18 bln vs INR 13.36 bln
--SRF to pay INR 4 per share interim dividend
--SRF Apr-Jun technical textiles business sales INR 4.67 bln vs INR 5.25 bln
--SRF Apr-Jun consol operating margin 17.17% vs 12.72% year ago
--SRF Apr-Jun consol EBIT INR 6.94 bln vs INR 4.84 bln year ago
--SRF Apr-Jun chemicals business operating profit INR 5.03 bln, up 64% on yr
--SRF Q1 performance films, foil operating profit INR 1.40 bln, up 62% on yr
--SRF Q1 technical textiles operating profit INR 380 mln, down 44% on year
--SRF to expand BOPP film mfg capacity at Indore unit for INR 4.90 bln
--SRF to set up agrochem intermediate facility at Dahej for INR 2.50 bln
--SRF: Applied for 494 patents as of Jun 30
--SRF: Specialty chemical business grew on pricing initiatives
--SRF: Specialty chemical ops grew on better demand in export mkts
--SRF: Flurochemical ops growth driven by higher refrigerant gas pricing
By P. Madhu Kumar
MUMBAI – SRF Ltd. reported a slightly higher-than-expected consolidated net profit for the June quarter. SRF witnessed a jump in its bottom line driven by profitability in its chemicals, performance films and foil businesses. The chemicals major posted a 71% on-year jump in its consolidated net profit to INR 4.32 billion. However, it fell nearly 18% quarter on quarter. Analysts had estimated the bottom line at INR 4.02 billion.
The company's consolidated net revenue rose over 10% to INR 38.19 billion but fell over 11% on quarter. The consoildated revenue of the company fell short of analysts expectations of INR 39.57 billion. SRF's Chairman and Managing Director, Ashish Bharat Ram said, "In spite of a weak summer and prevailing global uncertainties, we have had a good start to the year. We remain cautiously optimistic for the rest of the year".
Profit from the company's chemicals business rose a whopping 64% on year to INR 5.03 billion. The performance films and foil business saw a jump of over 62% on year to INR 1.40 billion.
The company did not witness any major shift in its expenses and the total expense for June quarter rose just over 4% on year to INR 32.72 billion. The cost of materials consumed rose nearly 6% to INR 19.31 billion.
The company's consolidated revenue fell short of analysts expectations as the chemical business failed to meet estimates. Sales from the chemicals business segment of the company rose over 24% on year to INR 18.39 billion against the expectations of a 35% on-year growth. The specialty chemical business continued to see growth in demand for key agrochemical intermediates and the segment's growth was driven by strong pricing and demand in export markets, the company said in a press release. The fluorochemicals business delivered a robust performance, driven by higher refrigerant gas pricing.
The revenue for the performance films and foil business segment rose to INR 14.18 billion, up over 6% on year. This was the segment's highest ever packed production and aluminium foil sales till date supported by strong market demand. The operating profit for the performance films and foil business segment rose 62% year-on-year to INR 1.40 billion.
The technical textiles business segment's top line fell 11% on year to INR 4.67 billion and the operating profit declined 44% to INR 380 million. The fall in this segment was due to a reduced demand for nylon tyre cord fabric and pricing pressures in the belting fabrics business segment, which in turn was due to persistent dumping from China.
The company's operating margin stood at 17.17% for Apr-Jun compared with 12.72% on year. SRF reported an over 43% jump on year in its earnings before interest and tax to INR 6.94 billion.
The company's board has approved an interim dividend of INR 4 per equity share. In terms of capital expenditure, the company will set up an agrochemical intermediate facility at Dahej, Gujarat to produce 12,000 tonne per annum of an agrochemical intermediate for INR 2.5 billion. The company's board has also approved INR 4.9 billion to set up a Biaxially Oriented Polypropylene film manufacturing facility in Indore, which is expected to be completed within 24 months. The company has applied for 494 patents for research and development and technology so far. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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