SRF Ltd Q4FY23 PAT down -7.13% yoy as input costs hit OPMs at packaging and technical textiles business

SRF Ltd reported 6.44% growth in total revenues for the March 2023 quarter on consolidated basis at Rs3,778cr. On a sequential basis, the revenues were up by 8.58%. In terms of segmental sales, the company showed strong growth traction in the chemicals business. However, the technical textiles business and the packaging business saw a sharp fall in sales on yoy basis due to weak global demand.

On the operating profits front, it was once again the chemicals business that saw operating profits expanding from Rs504 crore to Rs739 crore yoy. The operating numbers of the Technical Textiles business almost halved to Rs48.40 crore while the operating profits of the packaging business fell from Rs276 core to just Rs41 crore. This segment put the most pressure on the overall profit growth for the quarter.

Financial highlights for Mar-23 compared yoy and sequentially

It was the pressure on the operating performance of the packaging and the technical textiles business that led to fall in profits in the quarter. The operating margins fell over 240 bps to 22.23% while the net margins fell by over 210 bps to 14.89% on a yoy basis.