Q4 2024 SRF Ltd Earnings Call Transcript
Key Points
- SRF Ltd (BOM:503806) celebrated its 50th anniversary, highlighting its long-term stability and stakeholder support.
- The company has a strong focus on R&D and infrastructure, which supports its ability to develop complex products and drive sustainable growth.
- Despite challenges, the technical textiles business saw marginal growth in FY24, indicating resilience in this segment.
- The company has made significant investments in expanding its chemical business, with INR1,700 crores spent on various projects in FY24.
- SRF Ltd (BOM:503806) has enhanced its capabilities in novel chemistries and is showing positive traction in the pharma sector, with nine dedicated facilities commissioned at the Dahej site.
- Operating revenue decreased by 12% to INR13,139 crores, and EBITDA dropped by 26% to INR2,744 crores, reflecting a challenging fiscal year.
- Profit after tax decreased by 38% from INR2,162 crores in FY23 to INR1,336 crores in FY24, indicating significant financial pressure.
- The chemical business declined by 15% due to a protracted inventory destocking cycle and competitive pressures from China.
- The packaging films business registered a revenue decline of 14%, with market conditions remaining extremely difficult and margins under pressure.
- The fluorochemicals business faced a tough year with weak domestic market conditions, Chinese dumping, and inventory buildup, leading to stress on refrigerant prices and volumes.
Ladies and gentlemen, we have the management line reconnected with us.
Thank you. Please note that anything we say that refers to our outlook for the future is a forward-looking statement and a disclaimer to this effect has been included in the earnings presentation shared with you earlier.
I would now invite our CMD, Mr. Bharat Ram to make his opening remarks. Thank you.
Thank you, Nitika, and good afternoon to all of you. 2024 marked SRF's 50th anniversary, and I would like to use this opportunity to thank all our stakeholders. It is due to your unwavering support that we have been doing business as a company for half a century since our first facility in Manali commenced operations in 1974. Our 50-year journey is a series of transformations.
As we look to the future, our position remains strong and promising for delivering sustained
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