SRF (SRF) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 was challenging, with consolidated gross operating revenue at ₹3,464.1 crore (+3.8% YoY), but profit after tax declined 29.8% to ₹252.2 crore due to headwinds in the chemicals business and margin contraction.

• EBITDA margin contracted to 18.6% from 21.9% YoY, and EBIT margin for Q1 FY2025 was 14%.

• Interim dividend of ₹3.60 per share (36%) was approved.

• Packaging Films and Technical Textiles posted strong growth, while Chemicals saw revenue and EBIT declines.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board.

Financial highlights

• Gross operating revenue: ₹3,464.1 crore (+3.8% YoY); consolidated net profit: ₹252.2 crore (-29.8% YoY); PAT margin: 7.3%.

• EBITDA: ₹645.9 crore (-11.7% YoY); EBITDA margin: 18.6%.

• Basic and diluted EPS: ₹8.51 (vs ₹12.12 YoY).

• Chemical business revenue declined 11% YoY to ₹1,482 crore, mainly due to sluggish demand in agrochemicals and inventory rationalization.

• Packaging Films revenue grew 22% YoY to ₹1,336 crore, with improved profit margins and record production.

Outlook and guidance

• Management maintains 20% growth guidance for specialty chemicals, expecting H2 to compensate for H1 shortfalls.

• EBIT margin for chemicals expected to remain within 35%-36% ±2% on an annualized basis.

• CapEx for FY2025 projected at ₹1,300–1,900 crore, with no plans to defer projects; six-year CapEx plan of ₹12,000–15,000 crore remains on track.

• Commercial paper program remains highly rated; all due commercial papers repaid during the quarter.

• Gradual improvement expected in agrochemicals; new pharma intermediates and facility ramp-ups to drive growth.