Shares of a chemical-based multi-business entity engaged in the manufacturing of industrial and specialty intermediates on Tuesday surged nearly 1 percent to Rs. 2,299.95 on BSE, after the Board of the company approved capex plans of more than Rs. 1,500 crores.
With a market cap of Rs. 65,213.5 crores, the shares of SRF Limited closed in the red at Rs. 2,200, down by nearly 3.4 percent, compared to its previous closing price of Rs. 2,277.6.
What’s the news:
According to the latest regulatory filings with the stock exchanges, the Board of SRF Limited has approved a project to set up new production facilities for manufacturing fourth-generation refrigerants at Dahej, Gujarat.
These refrigerants are notable for their significantly lower Global Warming Potential (GWP) and carbon footprint, with an estimated project cost of Rs. 1,100 crore. The project is anticipated to be completed in about thirty months.
The Board has also approved a project to set up a manufacturing facility for the BOPP-BOPE film line, including a Metallizer, in Indore, India. This project presents an opportunity for the company to expand the existing substrate, BOPP, and to explore a new substrate, BOPE.
Additionally, it aligns with the company’s sustainability agenda, as polyolefin substrates like BOPP/BOPE are recognised for their sustainability advantages due to their mono-family composition and ease of recyclability.
The proposed capacity addition for BOPP is 60,000 MTPA, with an estimated project cost of Rs. 445 crores, and is expected to become operational in around twenty-five months.
Financial Results:
The fluctuations in the share prices were also observed after SRF Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges during the trading session of Tuesday.
For Q2 FY25, SRF reported consolidated revenue from operations of Rs. 3,424.3 crores, reflecting a marginal decline of around 1.2 percent QoQ from Rs. 3,464 crores in Q1 FY25, but an increase of about 8 percent YoY from Rs. 3,177.4 crores in Q2 FY24.
The company’s net profit for Q2 FY25 fell to Rs. 201.4 crores, representing a significant decline of around 20.2 percent QoQ from Rs. 252.2 crores in Q1 FY25 and a year-on-year decrease of nearly 33 percent from Rs. 301 crores in Q2 FY24.
Stock Performance:
The stock has delivered positive returns of nearly 1.3 percent in one year, but around 14.2 percent of negative returns in the last six months. So far in 2024, the shares of SRF Limited have given negative returns of about 10.8 percent.
About the company:
SRF Limited is a chemical-based, multi-business conglomerate engaged in the manufacturing of industrial and specialty intermediates. It has a diversified business portfolio covering fluorochemicals, specialty chemicals, packaging films, technical textiles and coated and laminated fabrics.
Written by Shivani Singh
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