Last Updated on January 31, 2024 by ethinos
Table of Content
Announcement of Financial Results:
SRF Limited, a chemical-based multi-business entity headquartered in Gurugram, disclosed its consolidated financial results for the third quarter and nine months ending on December 31, 2023. The unaudited results were endorsed by the Board of Directors during a meeting on January 30, 2024.
Consolidated Q3FY24 Financials:
- Revenue: The company witnessed a 12% decrease in consolidated revenue, dropping from ₹3,470 crore to ₹3,053 crore compared to the Corresponding Period Last Year (CPLY).
- Earnings: Earnings before Interest and Tax (EBIT) declined by 37%, plummeting from ₹726 crore to ₹457 crore in Q3FY24 when compared with CPLY. Profit after Tax (PAT) also experienced a significant decline of 50%, decreasing from ₹511 crore to ₹253 crore in Q3FY24 compared to CPLY.
- Chairman’s Comment: Ashish Bharat Ram, the Chairman and Managing Director, acknowledged the challenging quarter but expressed optimism about improvements in the Chemicals Business and anticipated a notable performance enhancement in the fourth quarter. He highlighted the focus on quickly scaling up operations with numerous plants coming online.
Additional Read: Q3 Results Dashboard
Interim Dividend:
- The Board of Directors approved a second interim dividend at a rate of 36%, equivalent to ₹3.60 per share. This follows the approval of the first interim dividend on July 24, 2023, at the same rate.
Consolidated Q3FY24 Segment Results:
- Chemicals Business: Reported a 21% decrease in segment revenue and a 43% decline in operating profit during Q3FY24 compared to CPLY. Factors impacting performance included inventory rationalisation by key customers and seasonally low demand for refrigerants.
- Packaging Films Business: Experienced a 9% decline in segment revenue and a substantial 62% decrease in operating profit during Q3FY24 compared to CPLY. Challenges included supply additions in film segments and a global demand slowdown, though the commissioning of an Aluminium Foil facility was a positive development.
- Technical Textiles Business: Witnessed an 8% increase in segment revenue and a significant 101% rise in operating profit during Q3FY24 compared to CPLY. Despite adverse impacts from Cyclone Michaung, the business performed well due to healthy domestic demand for flagship products.
- Other Businesses: Reported a 23% increase in segment revenue and a notable 132% surge in operating profit during Q3FY24 compared to CPLY. Strong domestic sales, particularly in the Coated Fabrics segment, contributed to the positive performance.
9M FY24 Financials:
During the first nine months of FY24, SRF experienced a 14% decrease in revenue and a 43% decline in PAT compared to CPLY, amounting to ₹9,569 crore and ₹914 crore, respectively.
Innovation and Intellectual Property:
As of December 31, 2023, SRF had applied for a total of 430 patents, with 146 patents granted globally, highlighting the company’s focus on innovation and intellectual property.
Additional Check: SRF Share Price
About SRF Limited
In the year of 2024, SRF Limited proudly celebrates five decades of unwavering commitment to manufacturing excellence. Since the inauguration of its inaugural plant in 1974, SRF has metamorphosed into a formidable manufacturing conglomerate, boasting a diverse array of businesses across various sectors. The company’s expansive business portfolio encompasses Fluorochemicals, Specialty Chemicals, Packaging Films, Technical Textiles, as well as Coated and Laminated Fabrics. This diversification underscores SRF’s adaptability and resilience in the face of evolving market dynamics.
Bolstered by a robust workforce exceeding 8,000 employees hailing from diverse nationalities, SRF operates across thirteen cutting-edge manufacturing facilities situated in India, complemented by additional plants in strategic locations such as Thailand, South Africa, and Hungary. These facilities enable SRF to export its products to over 90 countries, showcasing its global footprint and reach. At the forefront of innovation, SRF is equipped with state-of-the-art Research and Development (R&D) facilities, driving the company’s relentless pursuit of technological advancement. To date, SRF has filed an impressive 430 patents for R&D and technological innovations, with 146 patents already granted. This underscores SRF’s commitment to pushing the boundaries of innovation and staying at the forefront of industry trends.
Acknowledging its commitment to excellence, SRF has been honoured with the prestigious Deming Prize for two of its core businesses, namely Tyre Cord and Chemicals. This recognition underscores SRF’s unwavering dedication to quality and operational excellence. Embracing Total Quality Management (TQM) as its guiding management philosophy, SRF continually redefines its corporate culture and operational practices, ensuring it remains at the vanguard of industry standards and best practices.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For Research Disclaimers Click Here: https://bit.ly/3Tcsfuc
Sources: https://www.srf.com/wp-content/uploads/2024/01/2024-01-30-UAFR-Standalone-and-Consolidated-Dec-23.pdf
