India's SRF posts fifth straight drop in quarterly profit
Indian chemicals and polymers maker SRF posted a drop in profit for the fifth quarter in a row on Tuesday, hurt by sustained weak demand in its mainstay chemicals business.
SRF's chemical business, which consists of specialty chemicals, fluorochemicals and agrochemicals among others, contributes half the company's quarterly revenue.
WHY IT'S IMPORTANT
The chemical industry has been grappling with high inventory and destocking for the past few quarters, leading to continuous pressure on volume and margins, according to analysts.
SRF said that besides inventory rationalization, prices were also under pressure due to low-priced products from China. It said its fluorochemicals business was hit by China's dumping of refrigerants in India and the international markets.
Peer Coromandel International also reported a lower fourth-quarter profit due to subdued demand for its fertilizer and nutrient chemicals.
BY THE NUMBERS
SRF's consolidated net profit fell nearly 25% to 4.22 billion rupees ($50.6 million) in the quarter ended March 31.
Revenue from operations fell 5.5% to 35.7 billion rupees, with revenue from its chemical business segment sliding 13.6%.
KEY QUOTES
"We have seen a reasonable recovery in our chemicals business in the fourth quarter ... (we) believe that this recovery will pick up pace in the second half of fiscal 2025," Ashish Bharat Ram, chairman and managing director, said.
