SRF Limited Announces Fourth Quarter and Full-Year Fiscal 2024 Financial Results

GURUGRAM, India, May 7, 2024 /PRNewswire/ -- SRF Limited, a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates, today announced its consolidated financial results for the fourth quarter and year ended March 31, 2024. The company's audited results were approved by the Board of Directors in a meeting held today.

Consolidated Q4FY24 Financials  

The consolidated revenue of the company declined 6% from ₹3,778 crore to ₹3,570 crore in Q4FY24 when compared with Corresponding Period Last Year (CPLY). The company's Earnings before Interest and Tax (EBIT) decreased 27% from ₹840 crore to ₹616 crore in Q4FY24 when compared with CPLY. The company's Profit after Tax (PAT) decreased 25% from ₹562 crore to ₹422 crore in Q4FY24 when compared with CPLY.

Commenting on the results, Chairman and Managing Director, Ashish Bharat Ram said, "While the general performance has been weak, we have seen a reasonable recovery in our Chemicals Business in the fourth quarter, as we had envisaged. We believe that this recovery will pick up pace in the second half of FY25."

Consolidated Q4FY24 Segment Results

The Chemicals Business reported a decline of 14% in its segment revenue from ₹2,102 crore to ₹1,816 crore during Q4FY24 over CPLY. The operating profit of the Chemicals Business decreased 33% from ₹739 crore to ₹498 crore in Q4FY24 over CPLY. During the quarter, the Specialty Chemicals Business continued to face headwinds due to inventory rationalization by certain key customers, while performing better than Q3FY24. In addition, a lot of capacity has come up in China, leading to pricing pressure on intermediate products.

The performance of the Fluorochemicals Business was adversely impacted owing to Chinese dumping of refrigerants in India and the international markets, leading to pricing pressure and some impact on volumes. In addition, sluggish growth in the agrochemical and pharmaceutical industries adversely impacted the demand for some key industrial chemicals. On the positive side, the Business continues to increase market share in the Dymel^®/ propellant vertical in both the domestic and international markets, entering new geographies and broadening customer base.

The Packaging Films Business reported an increase of 3% in its segment revenue from ₹1,153 crore to ₹1,182 crore during Q4FY24 when compared with CPLY. The operating profit of the Packaging Films Business decreased 19% from ₹41 crore to ₹33 crore in Q4FY24 over CPLY. The Business faced strong headwinds with significant pressure on margins in Q4FY24. As stated earlier, this has been on account of several new lines getting operationalized in both BOPET and BOPP film segments in India and overseas. Moreover, we are witnessing severe competition from the Chinese players in the Southeast Asian markets.

However, we believe, as demand pivots towards global suppliers with multi-locational facilities, we remain cautiously optimistic about the prospects of this Business in the medium-term.

The Technical Textiles Business reported an increase of 9% in its segment revenue from ₹431 crore to ₹469 crore during Q4FY24 over CPLY. The operating profit of the Technical Textiles Business increased 44% from ₹48 crore to ₹70 crore in Q4FY24 over CPLY. During the quarter, the Business witnessed volume growth in the Nylon Tyre Cord Fabrics and the Polyester Industrial Yarn segments. The Business continues to focus on improving the sales of high-end, Value-Added Products, mostly in the Belting Fabrics segment.

The Other Businesses reported an increase of 13% in its segment revenue from ₹94 crore to ₹106 crore in Q4FY24 when compared with CPLY. The operating profit of the Other Businesses increased 37% from ₹11 crore to ₹16 crore in Q4FY24 over CPLY. Domestic demand for Coated Fabrics remained strong as the Business reported its highest-ever sales during the quarter. In the Laminated Fabrics Business, SRF continued to maintain its price leadership by selling full capacity.

Consolidated Annual Results

In FY24, SRF's revenue decreased 12% from ₹14,870 crore to ₹13,139 crore over CPLY. The company's EBIT decreased 31% from ₹3,193 crore to ₹2,201 crore over CPLY. The company's PAT decreased 38% from ₹2,162 crore to ₹1,336 crore over CPLY.

Innovation and Intellectual Property

As of March 31, 2024, the company has applied for 443 patents, with thirteen patents applied during the quarter. Till date, the company has been granted one-hundred and forty-nine patents globally. 

Awards and Recognition

SRF's Chairman and Managing Director, Ashish Bharat Ram was awarded the AIMA Managing India Award for the "Emerging Business Leader of the Year".

SRF's President & CFO, Rahul Jain was awarded the 'FE Visionary Leader' recognition by FinancialExpress.com.

About SRF Limited

In 2024, SRF Limited proudly commemorates 50 years of manufacturing excellence. Since the inauguration of SRF's first plant in 1974, the company has evolved into a manufacturing powerhouse with businesses spanning multiple verticals.

With an annual turnover of ₹12,910 crore (US$ 1.6 billion), the company's diversified business portfolio covers Fluorochemicals, Specialty Chemicals, Packaging Films, Technical Textiles and Coated and Laminated Fabrics. Anchored by a strong workforce of ~9,000 employees from different nationalities working across thirteen manufacturing plants in India and one each in Thailand, South Africa and Hungary, the company exports to 100+ countries.

Equipped with state-of-the-art R&D facilities, SRF has filed 443 patents for R&D and technology so far, of which 149 have been granted. A winner of the prestigious Deming Prize for two of its businesses, namely Tyre Cord and Chemicals, SRF continues to redefine its work and corporate culture with TQM as its management way.

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