SRF Ltd Q3 Results FY2023, PAT at Rs. 510.9 crores

On 30th January 2023, SRF Ltd announced its results for the third quarter of FY2023.

Key Highlights:

- The consolidated revenue of the company grew 4% YoY to Rs.3,469.66 crore in Q3FY23
- The company’s Earnings before Interest and Tax (EBIT) decreased 9% YoY to Rs.726 crore in Q3FY23 
- The company’s Profit after Tax (PAT) increased 1% YoY to Rs.510.90 crore in Q3FY23

Business Highlights:

- The Chemicals Business reported an increase of 23% YoY in its segment revenue to Rs.1,757 crore during Q3FY23. The Fluorochemicals Business had a healthy quarter owing to higher prices of certain key refrigerant products in critical international markets and increased domestic volumes of HFCs and blends. In addition, a healthy contribution from the chloromethanes segment augmented the overall results
- The Packaging Films Business reported a decline of 6% in its segment revenue from Rs.1,276 crore to Rs.1,203 crore during Q3FY23 when compared with CPLY. The Packaging Films Business faced headwinds on account of significant supply addition in BOPET and BOPP film segments in India, global demand slowdown, and steep energy costs in Europe.
- The Technical Textiles Business reported a decline of 21% in its segment revenue to Rs.426 crore during Q3FY23. Demand for Nylon Tyre Cord Fabric and Polyester Industrial Yarn remained weak during the quarter. 
- The Other Businesses reported a decline of 14% in its segment revenue to Rs.92 crore in Q3FY23 when compared with CPLY. Both the Coated and Laminated Fabrics Business performed in line with expectations in a difficult external environment.
- The Board has approved a project for setting up a range of Specialty Fluoropolymers at Dahej at a projected cost of Rs.595 crore. The project is expected to be commissioned in 24 months.
- The Board has also approved a project for setting up a new and dedicated facility to produce an agrochemical intermediate at Dahej at a projected cost of Rs.110 crore to meet the growing demand for the product in the future. This project is expected to be commissioned in ten months. 
- To cater to the growing requirements of new and upcoming plants at Dahej, the Board has approved a project to create a structure for a new plant building at a projected cost of Rs.40 crores.
- The company has applied for 398 patents, with twenty patents applied during the quarter

Commenting on the results, Chairman and Managing Director, Ashish Bharat Ram said, “In spite of the expected weakness in our Packaging Films and Technical Textiles Businesses, the Company has done well. The performance of our Chemicals Business remains strong and the continuing investments in this segment are a testament to our confidence going forward.”

 The Board also approved a second interim dividend at the rate of 36 percent amounting to Rs.3.60 per share