The company in its post-earnings conference call said its overall business in the second and third quarters are likely to be softer than the June quarter. Usually, the second and third quarters are softer from pricing and volumes. However, on an annual basis, the quarters would be better nonetheless, the management said.
The SRF management added that post the commissioning of its new hydrofluoroolefin (HFO) plants in Odisha, it will be in the top three to four refrigerate gas manufacturers globally.
The company expects refrigerant gas pricing broadly to stay at the level they were and to only get better from hereon. However, the second and third quarters specifically from an India and West Asia standpoint is expected to be weaker compared to the second quarter, with regards to volumes and pricing.
Q4 Results
The company’s first quarter earnings were better than Street estimates.
Its revenue increased 32% at ₹5,033 crore from ₹3,818 crore last year. Its net profit was up 76% at ₹759 crore in the first quarter from ₹432 crore in the previous fiscal.
The company’s earnings before interest tax depreciation and amortization (EBITDA) increased 49% to ₹1,236.6 crore from ₹829 crore last year. Its margins expanded to 24.6% from 22% in the year-ago period.
SRF’s June quarter results were led by performance films and foil segment. The chemicals segment continues to see pricing pressure.
the performance films and foil segment’s EBIT was at ₹508 crore and revenue was at ₹5,764 crore. Its margins increased to 17.3% from 9.9% in the previous fiscal.
Its revenue share was at 40.1% in the first quarter from 37.1% last year and its contribution to EBIT was at 31.3% compared to 20.2% in the year-ago period.
The stock was down 8.5% at ₹2,622.6 apiece at 2.50 pm on Thursday. The stock has declined 14.3% this year, so far. This is the biggest single-day fall for the stock since May 2021.
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