SRF Limited Q1FY25 Results: Mixed Performance with Packaging Films Buoyancy

SRF Limited, a diversified chemicals manufacturer, reported its consolidated financial results for the first quarter ended June 30, 2024 (Q1FY25). The results revealed a mixed performance with revenue growth but a decline in profitability.

Revenue Up, Profitability Down

Consolidated revenue increased marginally by 4% year-on-year (YoY) to ₹3,464 crore in Q1FY25. However, Earnings Before Interest and Tax (EBIT) declined by 19% YoY to ₹484 crore, and Profit After Tax (PAT) dropped by 30% YoY to ₹252 crore.

Segmental Performance

• Chemicals Business: This segment faced headwinds, with revenue declining 11% YoY to ₹1,482 crore and operating profit decreasing 33% YoY to ₹306 crore. Both the Specialty Chemicals and Fluorochemicals businesses witnessed challenges.
• Packaging Films Business: This segment emerged as a bright spot, registering a 22% YoY growth in revenue to ₹1,336 crore and a significant 69% YoY jump in operating profit to ₹87 crore. The BOPP films segment performed well, but the BOPET films faced an oversupplied market and competition.
• Technical Textiles Business: This business reported an increase of 13% in its segment revenue from ₹465 crore to ₹525 crore during Q1FY25 over CPLY. The operating profit of the Technical Textiles Business increased 12% from ₹61 crore to ₹68 crore in Q1FY25 over CPLY. The Technical Textiles Business had a good performance, achieving the highest sales ever of Tyre Cord Dipped Fabrics
• Other Businesses: The Other Businesses reported an increase of 6% in their segment revenue from ₹119 crore to ₹126 crore in Q1FY25 compared with CPLY. Their operating profit increased 2% from ₹23 crore to ₹24 crore in Q1FY25 over CPLY. Both the Coated and Laminated Fabrics Business performed well in a difficult market.

As of June 30, 2024, the company had applied for a total of 451 patents and had been granted 151 patents globally.

About SRF Limited

Since 1974, the company has evolved into a manufacturing powerhouse with businesses spanning multiple verticals. With an annual turnover of ₹12,910 crore (US$ 1.6 billion), the company’s diversified business portfolio covers Fluorochemicals, Specialty Chemicals, Packaging Films, Technical Textiles and Coated and Laminated Fabrics.

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