In This Article:
-
Gross Operating Revenue (Q2 FY 25): INR 3,424 crores, up 8% YoY.
-
EBIT (Q2 FY 25): INR 417 crores, representing a 12% margin.
-
Profit After Tax (Q2 FY 25): INR 201 crores.
-
Gross Operating Revenue (H1 FY 25): INR 6,888 crores, up 6%.
-
Profit After Tax (H1 FY 25): INR 454 crores.
-
Chemicals Business Revenue (Q2 FY 25): INR 1,358 crores, a decline of 5%.
-
Packaging Films Business Revenue (Q2 FY 25): INR 1,421 crores, up 27% YoY.
-
Technical Textiles Business Revenue (Q2 FY 25): INR 536 crores, up 6%.
-
CapEx for New Refrigerants Project: Estimated investment of INR 1,100 crores.
-
CapEx for BOPP, BOPE Film Line: Estimated cost of INR 445 crores.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
SRF Ltd (BOM:503806) reported an 8% year-on-year increase in gross operating revenue for Q2 FY 25, reaching INR 3,424 crores.
-
The company successfully launched three new agrochemical products and three new pharmaceutical products in the first half of the year.
-
SRF Ltd (BOM:503806) increased its market share in the domestic Refrigerants segment, particularly in the room air conditioner and mobile air conditioner markets.
-
The Packaging Films Business saw a 27% year-on-year revenue growth in Q2 FY 25, supported by record production levels and sales of value-added products.
-
The company is investing in next-generation refrigerants with a significant CapEx of INR 1,100 crores, highlighting its leadership in eco-friendly technology development.
Negative Points
-
The Chemicals Business reported a 5% decline in revenues, with the Specialty Chemicals segment facing challenges due to high inventory levels and subdued demand.
-
Margins in the Fluorochemicals Business were under pressure due to lower export realizations.
-
The Technical Textiles business experienced weak margins in the Belting Fabrics segment despite higher volumes.
-
The company faced increased competition from Chinese imports, impacting several segments including Packaging Films and Specialty Chemicals.
-
Finance costs increased compared to the previous year, leading to higher expenses in the P&L statement.
Q & A Highlights
Q: With the recovery seen in the second half, along with the new molecules gaining traction, will SRF Ltd be able to make up for the margin erosion in the Chemicals Business? A: Rahul Jain, President and CFO, stated that while some key products have experienced price erosion and volume positioning issues, the company expects Q3 to be slightly better and Q4 to show significant improvement. However, providing a precise guidance is challenging due to the current environment. The company maintains its margin outlook of plus/minus 2% to 3% from FY 24 annual margins, expecting positive changes in Q4 FY 25.