Chemical firm SRF Ltd has announced a 37% decline in its consolidated net profit for the September quarter, reporting a figure of Rs 300.78 crore. This decrease in profit is attributed to lower income. In addition, SRF Ltd has revealed plans for a total capex of Rs 510 crore, which will be used to establish facilities for the production of agrochemical intermediate and packaging film.
Comparing the September quarter of the current financial year to the same period last year, total income has fallen from Rs 3,760.52 crore to Rs 3,206.48 crore. This information was disclosed in a regulatory filing.
Chairman and Managing Director of SRF Ltd, Ashish Bharat Ram, commented on the company’s performance during the quarter. He noted that the chemicals business faced challenges due to destocking and inventory rationalisation. However, Ram expressed optimism for the second half of the financial year, stating that positive momentum is beginning to emerge. He also mentioned that the packaging films business will continue to experience overcapacity for some time.
The board of SRF Ltd has given approval for two new projects. The first project involves setting up a manufacturing facility for capacitor-grade BOPP Film in Indore, with an estimated cost of Rs 275 crore. The second project is for the establishment of a new facility in Dahej, Gujarat, to produce agrochemical intermediate, at a cost of Rs 235 crore.
SRF Ltd has also provided an update on its capital expenditure plan for the development of PTFE (polytetrafluoroethylene). The integrated facility for this project has been commissioned and capitalized at an aggregate cost of Rs 489 crore. The company mentioned that there were cost overruns due to increased civil and preoperative expenses, as well as delays caused COVID-related restrictions in obtaining support from the technology partner.
With an annual turnover of Rs 14,592 crore, SRF Ltd is a well-established chemical-based multi-business entity. Its operations encompass the manufacturing of industrial and specialty intermediates. The company’s diverse business portfolio includes fluorochemicals, specialty chemicals, packaging films, technical textiles, and coated and laminated fabrics. SRF Ltd was founded in 1970.