SRF Limited, a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates, consolidated revenue of Q2 FY25 increased 8% from Rs. 3,177 crore to Rs. 3,424 crore in Q2 FY25 when compared with the Corresponding Period Last Year (CPLY).

The company’s Earnings before Interest and Tax (EBIT) decreased 22% from Rs. 533 crore to Rs. 417 crore in Q2 FY25 when compared with CPLY. The company’s Profit after Tax (PAT) decreased 33% from Rs. 301 crore to Rs. 201 crore in Q2 FY25 when compared with CPLY.

Commenting on the results, Chairman and Managing Director, Ashish Bharat Ram said, “While the performance this quarter has been expectedly subdued, I believe the worst is now behind us. We will start seeing an improvement from this quarter onwards with a likelihood of a strong finish to the year.”

The Chemicals Business reported a decrease of 5% in its segment revenue from Rs. 1,426 crore to Rs. 1,358 crore during Q2 FY25 over CPLY. The operating profit of the Chemicals Business decreased 29% from Rs. 348 crore to Rs. 246 crore in Q2 FY25 over CPLY.

During the quarter, the Specialty Chemicals Business experienced traction on certain new products, while volumes of some key products witnessed lower offtake due to inventory issues at the customers’ end. Overall, the order book remains strong for H2, and a better performance is anticipated.

The Fluorochemicals Business saw healthy performance in the domestic market, with an increase in overall volumes. However, reduced export realizations put pressure on margins. The H2 performance of the Fluorochemicals Business is expected to be better as volumes in export markets ramp-up and the domestic season kicks-in.

The Packaging Films Business reported an increase of 27% in its segment revenue from Rs. 1,122 crore to Rs. 1,421 crore during Q2 FY25 when compared with CPLY. The operating profit of the Packaging Films Business increased 7% from Rs. 77 crore to Rs. 83 crore in Q2 FY25 over CPLY. This quarter, BOPET film margins improved somewhat in India, leading to better results for the Packaging Films Business, whereas Thailand continued to be affected by Chinese dumping. The performance of the BOPP film segment was in line with expectations.

The Technical Textiles Business reported an increase of 6% in its segment revenue from Rs. 506 crore to Rs. 536 crore during Q2 FY25 over CPLY. The operating profit of the Technical Textiles Business decreased 5% from Rs. 75 crore to Rs. 71 crore in Q2 FY25 over CPLY.

During the quarter, the Technical Textiles Business performed well owing to higher sales volume of its flagship Nylon Tyre Cord Fabric. Additionally, the Business witnessed healthy demand for its Polyester Yarn segment, while the Belting Fabrics segment witnessed low demand and margins, which had some impact on the overall performance.

The Other Businesses reported a decrease of 11% in its segment revenue from Rs. 127 crore to Rs. 113 crore in Q2 FY25 when compared with CPLY. The operating profit of the Other Businesses decreased 48% from Rs. 33 crore to Rs. 17 crore in Q2 FY25 over CPLY. During the quarter, the Coated and Laminated Fabrics segments performed in line with the expectations.

In the first six months of FY25, SRF’s revenue increased 6% from Rs. 6,516 crore to Rs. 6,888 crore over CPLY. The company’s PAT decreased 31% from Rs. 660 crore to Rs. 454 crore over CPLY.

As of September 30, 2024, the company has applied for a total of four hundred and fifty-eight patents. Till date, the company has been granted one hundred and fifty-one patents globally.