The specialty chemical maker's consolidated net profit slipped 29.80% to Rs 252.22 crore in Q1 FY25 as compared to Rs 359.29 crore recorded in Q1 FY24.
However, total revenue from operations increased 3.76% year on year (YoY) to Rs 3,464.12 crore in Q1 FY25.Profit before tax in Q4 FY24 was at Rs 343.98 crore, down 29.18% from Rs 485.77 crore recorded in the same period a year ago.
Earnings before interest and tax (EBIT) dropped 19% to Rs 484 crore in Q1 FY25 as against Rs 595 crore posted in corresponding period last year (CPLY).
The chemicals business reported a decline of 11% YoY in its segment revenue from Rs 1,661 crore to Rs 1,482 crore during Q1 FY25. The operating profit of the chemicals business decreased 33% YoY from Rs 460 crore to Rs 306 crore in Q1 FY25.
The specialty chemicals business faced headwinds in the quarter as the agrochemicals segment was sluggish due to inventory rationalization by certain key customers. The performance of the fluorochemicals business was affected due to low margin in the chloromethanes segment. However, the domestic refrigerant gases business improved during the quarter, which boosted the overall results, said the company.
Revenue from packaging films business increased 22% to Rs 1,336 crore in Q1 FY25 as compared to Rs 1,095 crore recorded in Q1 FY24. The operating profit of the packaging films business grew 69% YoY to Rs 87 crore in Q1 FY25. The business performed better when compared with CPLY. The BOPP films segment performed in line with expectations. However, the BOPET films segment continued to witness an oversupplied market. The business also had tough competition from the Chinese players in the Southeast Asian markets
The technical textiles business reported an increase of 13% YoY in its segment revenue to Rs 525 crore in Q1 FY25. The operating profit of the technical textiles business increased 12% from Rs 61 crore to Rs 68 crore in Q1 FY25 over CPLY. The Technical Textiles Business had a good performance, achieving the highest sales ever of Tyre Cord Dipped Fabrics.
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Income from other businesses grew by 6% YoY to Rs 126 crore in in the June quarter. The operating profit of the other businesses increased 2% YoY to Rs 24 crore in Q1 FY25. Both the coated and laminated fabrics business performed well in a difficult market, it added.
As of 30 June 2024, the company has applied for a total of four hundred and fifty-one patents. Till date, the company has been granted one hundred and fifty-one patents globally.
Ashish Bharat Ram, chairman and managing director of SRF, said, While this has been a weak quarter, it is on expected lines. We remain confident of a revival in the second half of this year.
Meanwhile, The company's board has approved an interim dividend of Rs 3.60 per share for the financial year 2024-25, with the record date being Wednesday, 31 July 2024. The date of payment of interim dividend will be on or before Wednesday, 21 August, 2024.
SRF is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company's diversified business portfolio covers fluorochemicals, specialty chemicals, packaging films, technical textiles, coated and laminated fabrics.
The scrip shed 0.51% to Rs 2,355.85 on the BSE.
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