Chemical firm SRF profit falls 37% to Rs 301 cr in Q2 2023-24

New Delhi, Chemical firm SRF Ltd on Friday reported a 37 per cent decline in its consolidated net profit to Rs 300.78 crore for the September quarter on lower income and announced a total capex of Rs 510 crore for setting up of facilities to produce agrochemical intermediate and packaging film. Its net profit stood at Rs 480.99 crore in the year-ago period.

Total income fell to Rs 3,206.48 crore during the July-September period of the 2023-24 financial year from Rs 3,760.52 crore in the corresponding period of the previous year, according to a regulatory filing.

SRF Chairman and Managing Director Ashish Bharat Ram said, "During the (second) quarter, we felt the brunt of the destocking and inventory rationalisation phenomenon in our chemicals business. Having said that, we are now beginning to see some positive traction that should bode well for a better second half of FY24. The overcapacity in our packaging films business will continue for some more time."

The board has approved projects for setting up a manufacturing facility for capacitor-grade BOPP Film in Indore at a projected cost of Rs 275 crore. It also approved a project for setting up a new facility to produce agrochemical intermediate in Dahej, Gujarat at a cost of Rs 235 crore.

Updating on a capital expenditure plan for setting up an integrated facility for the development of PTFE at an estimated cost of Rs 424 crore, SRF informed that the project has been commissioned and capitalised at an aggregate cost of Rs 489 crore.

"The cost over-run is due to an increase in civil and preoperative expenses and delays caused in obtaining support from the technology partner due to COVID imposed restrictions," it added.

With an annual turnover of Rs 14,592 crore, SRF Ltd is a chemical-based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. Established in 1970, the company's diversified business portfolio covers fluorochemicals, speciality chemicals, packaging films, technical textiles, and coated and laminated fabrics.