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SRF Reports Strong Q4 Profit Amid Project Deferral
SRF Ltd. reported a 10.6% rise in net profit for the fourth quarter, reaching ₹582 crore compared to ₹526 crore a year earlier. Total revenue for the period grew 7% to ₹4,615 crore, up from ₹4,313 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 7.1% to ₹1,026 crore, maintaining an EBITDA margin of 22.2%.
Indore Project Deferred Due to Market Changes
The company's board approved the indefinite deferral of its planned ₹490 crore BOPP film manufacturing facility in Indore, Madhya Pradesh. This decision is due to changes in the operating environment for BOPP films, leading to a need to reassess capital allocation. The move suggests a cautious stance on new investments, despite the company's otherwise strong financial performance.
Mixed Performance Across Business Segments
Across its diverse operations, the chemicals business reported a 4% revenue increase to ₹2,448 crore and a 5% rise in operating profit to ₹783 crore, driven by strong performance in fluorochemicals. The performance films and foil business also performed well, with revenue up 13% to ₹1,596 crore and operating profit soaring 47% to ₹154 crore, driven by higher volumes in BOPET and BOPP films.
Major Capex Hike for Odisha Project, Dahej Expansion Approved
SRF is substantially increasing investment plans for new generation refrigerants, more than doubling the planned expenditure to around ₹2,300 crore from ₹1,100 crore for its Odisha project. This expansion includes a new HFO production facility and a new HF plant. Additionally, an ₹88 crore project to expand HFC capacity at Dahej has been approved, expected to be commissioned shortly.
Stock Performance
Shares of SRF Ltd closed down 0.93% at ₹2,527.60 on the BSE.