On Wednesday, the large-cap company’s share price increased by 2.6% to an intraday high of ₹2,282 per share from its previous close of ₹2,223.05, despite a 50% decrease in net profit.
According to the exchange filing, SRF Limited announced its financial result for the December quarter and the interim dividend on Tuesday.
Looking at their financials, their net revenue fell 12% YoY from ₹3,470 crores to ₹3,053 crores, and on the QoQ basis, their net revenue fell by 3% from 3,177 crores.
The company’s net profit fell by 50% YoY from ₹511 crores to ₹253 crores, and on a sequential basis, the company’s net profit fell by 15.9% from 301.
The company Board has approved a second interim dividend of ₹3.60 per share as of the Record Date Wednesday, February 7, 2024. The interim dividend will be paid on Wednesday, February 28, 2024.
According to the filing, the Chemicals Business experienced a 43% decline in operating profit to ₹322 crore and a 21% decline in segment revenue to ₹1,394 crore in Q3FY24.
Specialty Chemicals faced inventory rationalization challenges, while Fluorochemicals struggled with low refrigerant demand.
The Packaging Films Business reported a 9% decrease in revenue to ₹1,091 crore and a 62% decrease in operating profit to ₹45 crore due to increased supply and a slowdown in global demand.
The Technical Textiles Business saw an 8% increase in revenue to ₹458 crore and a 101% increase in operating profit to ₹69 crore.
Due to a strong performance in the Coated Fabrics segment, Other Businesses saw a 23% increase in revenue to ₹114 crore and a 132% increase in operating profit to ₹21 crore.
In addition, the company has applied for four hundred and thirty patents. The company has been granted a total of 136 patents around the world.
The company has a low price-to-earnings ratio of 44 compared to its competitors, with a low debt-to-equity ratio of 0.42, a return on equity of 22%, a return on capital employed of 22%, and a net profit margin of 14%.
SRF Limited is a chemical conglomerate with a diverse portfolio of businesses. The Company manufactures industrial and specialty intermediates. It operates in four segments: technical textiles (TTB), chemicals (CB), packaging films (PFB), and others.
Written by Sriram KV
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