SRF Ltd Q1 Results FY2023, PAT at Rs. 395 crores

On 21st July 2022, SRF Limited, a chemical-based multi-business entity engaged in the manufacturing of industrial and specialty intermediates announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- The consolidated revenue of the company grew 44% from Rs.2,699 crore to Rs.3,895 crores in Q1FY23 when compared with Q1FY22.

- The company’s Earnings before Interest and Tax (EBIT) increased 58% from Rs.595 crore to Rs.938 crores in Q1FY23 when compared with Q1FY22.

- The company’s Profit after Tax (PAT) increased 54% from Rs.395 crore to Rs.608 crores in Q1FY23 when compared with Q1FY22. 

Segment Revenue:

- The Chemicals Business reported an increase of 55% in its segment revenue from Rs.1,114 crores to 1,722 crores during Q1FY23 over Q1FY22. During the quarter, the Fluorochemicals Business performed exceedingly well owing to higher sales volumes in the refrigerants, pharma propellants, and the blend segments with better sales realizations, especially from the export markets. In addition, the 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 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 Q1FY22. 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.

- The Technical Textiles Business reported an increase of 16% in its segment revenue from Rs.493 crores to Rs.571 crores during Q1FY23 over Q1FY22. 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.

- The Other Businesses reported an increase of 97% in its segment revenue from Rs.54 crore to Rs.106 crores in Q1FY23 when compared with Q1FY22. Both the Coated and Laminated Fabrics Business performed well in a difficult external environment.

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.”