Profit before tax in Q2 FY25 was at Rs 283.66 crore, down 31.61% from Rs 414.81 crore recorded in the same period a year ago.

Earnings before interest and tax (EBIT) dropped 22% to Rs 417 crore in Q2 FY25 as against Rs 533 crore posted in corresponding period last year (CPLY).

The chemicals business reported a decline of 11% YoY in its segment revenue from Rs 1,426 crore to Rs 1,358 crore during Q2 FY25. The operating profit of the chemicals business decreased 29% YoY from Rs 348 crore to Rs 246 crore in Q2 FY25.

In Q2 FY25, 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. The fluorochemicals business saw healthy performance in the domestic market, with an increase in overall volumes. However, reduced export realizations put pressure on margins.

Revenue from packaging films business increased 27% in its segment revenue to Rs 1,421 crore in Q2 FY25 as against Rs 1,122 crore recorded in Q2 FY24. The operating profit of the packaging films business grew 7% YoY to Rs 83 crore in Q2 FY25. 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 Q2FY25 over Q2 FY24. The operating profit of the technical textiles business decreased 5% from Rs 75 crore to Rs 71 crore in Q2FY25 over Q2 FY24. 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.

Other businesses reported a decrease of 11% in its segment revenue from Rs 127 crore to Rs 113 crore in Q2 FY25 over Q2 FY24. The operating profit of the other businesses decreased 48% from Rs 33 crore to Rs 17 crore in Q2FY25 over Q2 FY24. During the quarter, the coated and laminated fabrics segments performed in line with the expectations.

As of 30 September 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.

On half year basis, the company’s consolidated net profit fell 31.27% to Rs 453.64 crore on 5.71% rise in total revenue to Rs 6,888.42 crore in H1 FY25 over H1 FY24.

Meanwhile, the board has approved a project to establish production facilities for fourth generation refrigerants, which have a notably lower global warming potential (GWP) and carbon footprint, at an estimated cost of Rs 1,100 crore. The project is anticipated to be completed in about thirty months.

Further, the board has also approved a project to establish a manufacturing facility for the BOPP-BOPE film line in Indore, India. This project provides us with an opportunity to expand our current substrate, BOPP, and venture into a new substrate, BOPE. Additionally, it aligns with its sustainability agenda, as polyolefin substrates like BOPP/BOPE are considered more sustainable due to their mono-family advantage and ease of recyclability. The projected cost for this project is Rs 445 crore, and it is expected to be operational in approximately twenty-five months.

Ashish Bharat Ram, chairman and managing director of SRF, 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.”

SRF is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company's diversified business portfolio covers fluorochemicals, specialty chemicals, packaging films, technical textiles, coated and laminated fabrics.

Shares of SRF rallied 5.41% to currently trade at Rs 2,294.20 on the BSE.