Specialty Chemicals firm SRF Announced Q1FY23 Result :
- The consolidated revenue of the company grew 44% from Rs 2,699 crore to Rs 3,895 crore in Q1FY23 when compared with Corresponding Period Last Year (CPLY). The company’s Earnings before Interest and Tax (EBIT) increased 58% from Rs 595 crore to Rs 938 crore in Q1FY23 when compared with CPLY. The company’s Profit after Tax (PAT) increased 54% from Rs 395 crore to Rs 608 crore in Q1FY23 when compared with CPLY.
- The Chemicals Business reported an increase of 55% in its segment revenue from Rs 1,114 crore to 1,722 crore during Q1FY23 over CPLY. The operating profit of the Chemicals Business increased 134% from Rs 222 crore to Rs 520 crore in Q1FY23 over CPLY. During the quarter, the Fluorochemicals Business performed exceedingly well owing to higher sales volumes in the refrigerants, pharma propellants, and the blends segments with better sales realizations, especially from the export markets. In addition, healthy contribution from the chloromethanes segment augmented the overall results. The Specialty Chemicals Business performed well on account of strong demand for flagship products and the downstream derivatives. New products are gaining significant traction, resulting in SRF’s capital expenditure plans for the business being robust.
- The Packaging Films Business reported an increase of 44% in its segment revenue from Rs 1,041 crore to Rs 1,496 crore during Q1FY23 when compared with CPLY. The operating profit of the Packaging Films Business increased 25% from Rs 237 crore to Rs 295 crore in Q1FY23 over CPLY. During the quarter, the Business witnessed a slight slowdown in demand for BOPET and BOPP films, which impacted the overall margins. However, our customer centric approach of ‘Easy to do Business With’, coupled with enhanced sales of Value-Added Products (VAPs) contributed positively to the overall performance. crore to Rs 571 crore during Q1FY23 over CPLY. The operating profit of the Technical Textiles Business declined 13% from Rs 134 crore to Rs 116 crore in Q1FY23 over CPLY. The Business has performed in line with expectations with increased export volumes from the Nylon Tyre Cord and Belting Fabrics segments. However, the domestic demand for our portfolio of products remained muted.
Commenting on the results, Chairman and Managing Director, Ashish Bharat Ram said, “It has been a stellar quarter for the Company. The outlook for our Chemicals Business remains strong and we believe the investment intensity will increase in this segment. While our Packaging Films Business performed very well, we see strong headwinds for the Business with weak global demand and inventory losses in the short term."