Shares of SRF surged as much as 2.35 per cent to hit an intraday high of Rs 2.345.90 apiece, on Friday, despite announcing a weak set of results.
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The rise in stock came on hopes of recovery in the chemical business, which will pick up pace in the second half of FY25.
However, in the March quarter of financial year 2024, the chemicals business declined 14 per cent to Rs 1,816 crore, from Rs 2,102 crore in the same quarter previous fiscal.
The operating profit of the chemicals business decreased 33 per cent to Rs 498 crore in Q4FY24, from Rs 739 crore Q4FY23.
During the quarter, the specialty chemicals business continued to face headwinds due to inventory rationalisation by certain key customers, while performing better than Q3FY24, the company said. A lot of capacity has come up in China, leading to pricing pressure on intermediate products, it added.
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Overall, SRF’s profit plunged 25 per cent to Rs 422 crore in Q4FY24, from Rs 562.4 crore in Q4FY23.
The company’s revenue fell 5.5 per cent to Rs 3,570 crore in the March quarter of financial year 2024, from Rs 3,778 crore in the March quarter of FY23 (Q4FY23).
The chemicals company SRF’s earnings before interest, taxes, depreciation and amortisation (Ebitda), meanwhile, dropped over 25 per cent on a year-on-year (Y-o-Y) basis to Rs 696 crore in Q4FY24, from Rs 932 crore in the same quarter a year ago.
SRF’s margin squeezed over 500 basis points (bps) to 19.5 per cent in the March quarter of financial year 2024, as opposed to 24.6 per cent in the March quarter of financial year 2023.
The company’s expenses also soared to Rs 3,149.8 crore in Q4FY24, from Rs 3,067 crore in Q4FY23.
Based in Gurugram, SRF is engaged in the manufacturing of industrial and specialty intermediates. The company's business portfolio covers fluorochemicals, specialty chemicals, packaging films, technical textiles, coated and laminated fabrics.
The 52-week high of Abbott India share is Rs 2,697.45 while its 52-week low is Rs 2,050 apiece. The market capitalisation of Abbott India is Rs 68,410.10 crore, according to Bombay Stock Exchange (BSE).
At 10:50 AM, shares of SRF were trading 0.75 per cent higher at Rs 2,309. By comparison, S&P BSE Sensex was trading 0.36 per cent higher at 72,661.73 levels.