Chemicals firm SRF Ltd on Tuesday reported a 7.1 percent year-on-year (YoY) decline in net profit at Rs 562.4 crore for the fourth quarter that ended on March 31, 2023.
In the corresponding quarter last year, the company had posted a net profit of Rs 605.6 crore. A CNBC-TV18 poll had projected a profit of Rs 560 crore for the quarter under review.
In the March quarter, SRF's total revenue stood at Rs 3,778.1 crore, up 1.7 percent, as against Rs 948 crore in the corresponding period of the preceding fiscal. A CNBC-TV18 poll had predicted a revenue of Rs 3,769 crore for the quarter under review.
At the operating level, EBITDA declined 1.7 percent to Rs 931.7 crore in the fourth quarter, compared to Rs 948 crore in the corresponding period in the previous fiscal.
The EBITDA margin stood at 24.6 percent in the reporting quarter as compared to 26.7 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
The company's Profit after Tax (PAT) decreased 7 percent from Rs 606 crore to Rs 562 crore in the March quarter as againstthe corresponding period last year.
A look at the fiscal
In FY23, SRF's revenue increased 20 percent from Rs 12,434 crore to Rs 14,870 crore over the corresponding period last year; EBIT increased 13 percent from Rs 2,835 crore to Rs 3,193 crore; and PAT increased 14 percent from Rs 1,889 crore to Rs 2,162 crore.
The chemicals business reported an increase of 34 percent in its segment revenue from Rs 1,572 crore to Rs 2,102 crore, while the operating profit increased 47 percent from Rs 504 crore to Rs 739 crore.
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The packaging films business reported a decline of 17 percent in its segment revenue from Rs 1,390 crore to Rs 1,153 crore compared with the corresponding period last year. The segment's operating profit decreased 85 percent from Rs 276 crore to Rs 41 crore.
The technical textiles business reported a decline of 13 percent in its segment revenue from Rs 497 crore to Rs 431 crore in Q4FY23 over the corresponding period last year. The operating profit of the technical textiles business decreased 47 percent from Rs 91 crore to Rs 48 crore in Q4FY23 over the corresponding period last year.
Ashish Bharat Ram, chairman, and managing director, said, "Despite weaknesses in our technical textiles and packaging films businesses due to cyclical reasons, the company has seen the chemicals business deliver outstanding results."
As of March 31, 2023, the company has applied for 406 patents, with eight applied during the March quarter. To date, the company has been granted 132 patents globally.
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