Chemical firm SRF Ltd, based in New Delhi, has announced a 37% decline in its consolidated net profit for the September quarter. The company reported a net profit of Rs 300.78 crore, compared to Rs 480.99 crore in the same period last year. The decrease in profit is attributed to lower income. SRF has also revealed plans for a total capital expenditure of Rs 510 crore, which will be used to establish facilities for the production of agrochemical intermediates and packaging film.
During the July-September period of the 2023-24 financial year, SRF’s total income fell to Rs 3,206.48 crore from Rs 3,760.52 crore in the previous year. SRF Chairman and Managing Director, Ashish Bharat Ram, explained that the company experienced the impact of destocking and inventory rationalization in its chemicals business during the second quarter. However, he expresses optimism for a better second half of FY24 as positive traction is beginning to emerge. He also mentioned that overcapacity in the packaging films business will persist for some time.
In terms of new projects, SRF has received board approval for two manufacturing facilities. The first is a capacitor-grade BOPP Film facility in Indore, projected to cost Rs 275 crore. The second is a facility for agrochemical intermediate production in Dahej, Gujarat, with an estimated cost of Rs 235 crore. SRF has also provided an update on its capital expenditure plan for the development of PTFE, with the project being commissioned and capitalized at a cost of Rs 489 crore. However, the company experienced cost overruns due to increased civil and preoperative expenses, as well as delays in technology partner support caused by COVID-19 restrictions.
SRF Ltd, with an annual turnover of Rs 14,592 crore, is a chemical-based multi-business entity. Established in 1970, the company specializes in the manufacturing of industrial and specialty intermediates. Its diverse business portfolio includes fluorochemicals, specialty chemicals, packaging films, technical textiles, and coated and laminated fabrics.
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