India’s SRF’s Q3 profit forecast on strong chemicals business

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

The company’s consolidated profit rose about 1% to 5.11 billion Indian rupees ($62.7 million) in the three months ended Dec. 2. 31. Analysts on average expected a profit of Rs 4.92 billion.

The Gurgaon-based conglomerate’s chemicals business revenue rose 23% to Rs 1,757 crore on strong demand for certain key products such as fluoride.

The chemicals segment accounts for about 51% of the company’s total revenue.

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

It added that strength in the fluoride business helped offset weakness in its packaging films business, which had to contend with slowing global demand and steep energy costs in Europe.

Sales of the company’s products rose 1.7% to Rs 3,369 crore.

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

The company’s shares closed 2.9 percent higher at Rs 2,194 on Monday ahead of the earnings release. They are down 5.36% in 2022.

($1 = 81.5000 Indian Rupees)

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

Our Standards: The Thomson Reuters Trust Principles.

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