India’s SRF beat Q3 profit outlook on strong chemicals business

BENGALURU, Jan 30 – Indian chemicals and polymers maker SRF Ltd ( SRFL.NS ) reported better-than-expected third-quarter profit on Monday on strong demand in its chemicals business.

The company’s consolidated profit rose 1% to 5.11 billion Indian rupees ($62.70 million) in the three months ended December 31. Analysts on average had expected a profit of 4.92 billion rupees.

The Gurgaon-based conglomerate’s chemical business grew 23 percent to Rs 17.57 billion on strong demand for some key products such as fluorochemicals.

The chemical segment accounts for 51 percent of the company’s total revenue.

SRF has seen strong demand from overseas markets, high capacity utilization and significant cost savings across all product streams, the company said.

Strength in the fluorochemicals business helped offset weakness in the packaging film business, which had to contend with slowing global demand and higher energy costs in Europe.

The company’s product sales rose 1.7 percent to 33.69 billion rupees.

SRF approved three projects in the December quarter, including a capex project worth Rs 5.95 billion.

The company’s shares closed up 2.9% at 2,194 rubles on Monday, ahead of earnings. In 2022, they decreased by 5.36%.

($1 = 81.5000 Indian Rupees)

Reporting by Ashna Teresa Britto in Bengaluru; Edited by Janane Venkatraman

Our standards: The Thomson Reuters Trust Principles.

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