Profit before tax in Q4 FY24 was at Rs 443.32 crore, down 39.55% from Rs 733.39 crore recorded in the same period a year ago.

Earnings before interest and tax (EBIT) dropped 27% to Rs 616 crore in Q4 FY24 as against Rs 840 crore posted in corresponding period last year (CPLY).

The chemicals business reported a decline of 14% YoY in its segment revenue to Rs 1,816 crore during Q4 FY24. The operating profit of the chemicals business decreased 33% to Rs 498 crore in Q4FY24 over CPLY. During the quarter, the specialty chemicals business continued to face headwinds due to inventory rationalization by certain key customers, while performing better than Q3 FY24. In addition, a lot of capacity has come up in China, leading to pricing pressure on intermediate products, said the company.

Revenue from packaging films business increased by 3% to Rs 1,182 crore in Q4 FY24 as compared with corresponding quarter last year. The operating profit of the business declined 19% to Rs 33 crore in Q4 FY24 over Q4 FY23. During the quarter, the performance of the packaging films business had faced strong headwinds with significant pressure on margins in Q4 FY24.

“This has been on account of several new lines getting operationalized in both BOPET and BOPP film segments in India and overseas. Moreover, we are witnessing severe competition from the Chinese players in the Southeast Asian markets,” the company stated in the press release.

The technical textiles business reported an increase of 9% YoY in its segment revenue to Rs 431 crore in Q4 FY24. The operating profit of the technical textiles business jumped 44% to Rs 70 crore in Q4 FY24 from Rs 48 crore in Q4 FY23. During the period under review, the business performed well in nylon tyre cord fabric and the Polyester Industrial Yarn segments. The business continued to focus on improving the sales of high-end, value-added products, mostly in the belting fabrics segment.

Income from Other businesses grew by 13% YoY to Rs 106 crore in the March quarter. The operating profit of the other Businesses jumped 37% YoY to Rs 16 crore in Q4FY24. Domestic demand for coated fabrics remained strong as the business reported its highest-ever sales during the quarter. In the laminated fabrics business, SRF continued to maintain its price leadership by selling full capacity, it added.

On full year basis, the company’s consolidated net profit declined 38.23% to Rs 1,335.71 crore on 11.65% fall in revenue to Rs 13,138.52 in FY24 over FY23.

As of 31 March 2024, the company has applied for a total of four hundred and forty three patents including thirteen patents applied during this quarter. Till date, the company has been granted one hundred and forty-nine patents globally.

Ashish Bharat Ram, chairman and managing director of SRF, said, “While the general performance has been weak, we have seen a reasonable recovery in our Chemicals Business in the fourth quarter, as we had envisaged. We believe that this recovery will pick up pace in the second half of FY25.”

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.