SRF Q1 results: Consolidated net profit falls by 41% to Rs 359 crore

SRF Q1 results: Chemical firm SRF Ltd on Monday reported a 41 per cent decline in consolidated net profit to Rs 359 crore for the first quarter of this fiscal on lower income. The net profit stood at Rs 608 crore in the year-ago period.

The consolidated revenue declined 14 per cent to Rs 3,338 crore in the first quarter of this fiscal from Rs 3,895 crore in the corresponding period of the previous year.

SRF Chairman and Managing Director Ashish Bharat Ram said, "while we have seen a significant drop in our profits, a large portion is attributable to the expected downcycle of the packaging films business. This is expected to continue for the medium-term."

The chemicals business has been affected by lower sales in fluoro chemicals business due to a very mild summer and general weakness in the industrial chemicals segment, he added. The specialty chemicals business has performed as per expectations with growth over last year.

"Having said that, as everyone knows, there is a lot of inventory unwinding going on globally and this will have some impact on the business in the next couple of quarters. On the positive side, the longer-term projects remain on track, and we expect to keep our capex momentum intact," the company's chief said.

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