India’s SRF beats Q3 profit view on strong chemical business

BANGALORE, Jan. 30 – Indian chemical and polymer maker SRF Ltd (SRFL.NS) reported better-than-expected third-quarter profit on Monday.

The company’s consolidated profit increased by about 1% to INR 5.11 billion ($62.7 million) in the three months ended December 31. Analysts had expected an average profit of Rs 4.92 billion.

The Gurgaon-based conglomerate’s chemical business revenue increased by 23% to Rs 17.57 billion due to strong demand for certain key products such as fluorochemicals.

The chemical sector accounts for about 51% of the company’s overall revenue.

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

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

The company’s product sales increased by 1.7% to Rs 33.69 billion.

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

The company’s share price climbed 2.9% to 2,194 rupees on Monday, outperforming earnings. In 2022 he is down 5.36%.

($1 = 81.5000 Indian Rupees)

Reported by Ashna Teresa Britt of Bengaluru. Edited by Janane Venkatraman

Our standards: Thomson Reuters Trust Principles.

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