SRF Q3 FY25 Results: Net Profit Exceeds Expectations with 7% Growth to Rs 271 Crore

SRF Limited, a leading chemical manufacturer, has reported strong financial results for the third quarter of FY 2024-25, surpassing market expectations across key metrics despite challenging market conditions.

Key Financial Highlights

The company demonstrated robust performance in Q3 FY25:

• Net Profit increased 7% to Rs 271 crore
• Revenue grew 14.4% to Rs 3,491 crore, surpassing estimates of Rs 3,398.5 crore
• EBITDA rose 9.5% to Rs 620 crore, above projected Rs 580.4 crore
• EBITDA margin stood at 17.7%, outperforming the estimated 17.1%

Dividend Announcement

The board has approved a second interim dividend of Rs 3.6 per share with key dates:

• Record Date: February 4, 2025
• Payment Date: On or before February 27, 2025
• This matches the first interim dividend of Rs 3.6 per share announced in July

Segment-wise Performance

Chemicals Business

Revenue increased 7% to Rs 1,496 crore with operating profit up 13% to Rs 364 crore. The specialty chemicals segment showed signs of gradual demand recovery, while the fluorochemicals business received strong domestic market support for refrigerants.

Packaging Films Business

Demonstrated exceptional growth with:

• Revenue surge of 27% to Rs 1,385 crore
• Operating profit doubled to Rs 90 crore
• Faced margin pressure in Aluminum Foil segment due to imports from China and Thailand

Technical Textiles Business

Showed mixed performance:

• Revenue growth of 11% to Rs 510 crore
• Operating profit declined 14% to Rs 59 crore
• Achieved full capacity utilization in polyester industrial yarn segment

Market Performance and Outlook

Despite currency fluctuations impacting quarterly results, SRF's stock closed 2.18% higher at Rs 2,657 on the NSE. Management expressed optimism about maintaining momentum and finishing the year strong, citing decent recovery in the current quarter.

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Categories: chemical sector earnings, corporate performance analysis, SRF Q3 results