homeearnings NewsSRF's Q4 earnings expected to decline due to weak packaging and technical textile segment performance
SRF's Q4 earnings expected to decline due to weak packaging and technical textile segment performance
SRF is set to report its earnings on May 9th, with expectations of a weaker quarter primarily due to underperformance in its packaging and technical textile segment.
SRF is set to report its earnings on Tuesday, May 9 , with expectations of a weaker quarter primarily due to underperformance in its packaging and technical textile segment.
Despite an anticipated 6 percent increase in overall revenue, the company's EBITDA is predicted to drop by 2 percent, causing a decline in profit by 7.5 percent to reach Rs 560 crore, as margins also decrease by 200 basis points.
Despite consistently surpassing expectations in recent quarters, SRF's success has been largely driven by its specialty chemicals segment, which is again expected to perform well this quarter with a projected 28 percent year-on-year revenue growth.
However, the packaging and technical textile segment is expected to continue experiencing weakness, leading to a projected 5 percent decrease in packaging segment revenues and a 2 percent decrease in technical textile revenues, ultimately contributing to the EBITDA decline.
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As SRF enters FY24, analysts are keen to hear management commentary on the state of these two segments and the outlook for growth.
Although the current quarter is expected to be subdued for SRF, the company's performance in future quarters will be closely watched.
First Published: May 8, 2023 3:59 PM IST
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