SRF (SRF) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 was challenging, with gross operating revenue at ₹3,464.1 crore, EBITDA down 11.7%, and PAT down 29.8% year-over-year, mainly due to headwinds in the chemicals business, though packaging films and technical textiles showed growth.

• The Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, with no material misstatements identified by auditors.

• An interim dividend of ₹3.60 per share (36%) was declared.

• The company continues to focus on R&D, innovation, and expanding high-value product offerings.

Financial highlights

• Consolidated gross operating revenue was ₹3,464.1 crore (up 3.8% year-over-year), with EBITDA at ₹645.9 crore (down 11.7%) and PAT at ₹252.2 crore (down 29.8%).

• Chemical business revenue declined 10.8% YoY to ₹1,482 crore, while packaging films grew 22.1% YoY to ₹1,336.3 crore, and technical textiles increased 13.1% YoY to ₹525.3 crore.

• Basic and diluted EPS was ₹8.51, compared to ₹12.12 in Q1 FY24.

• Standalone revenue and net profit declined both sequentially and year-over-year.

Outlook and guidance

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

• CapEx for FY2025 projected at ₹1,300–1,900 crore, with a six-year plan of ₹12,000–15,000 crore on track.

• New HF plant commissioning in Q2 FY25 to provide cost advantages; aluminium foil facility to contribute positively.

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