SRF · Chemicals
SRF Ltd. reported revenue of ₹3,491 cr for October to December 2024, +14.3% on the year and +2.0% on the quarter.
Operating profit (EBITDA) was ₹620 cr, a margin of 17.8%, −78 bps on the year and +205 bps on the quarter. Over the last 7 quarters the margin has ranged from 15.7% to 20.9%, averaging 18.5%. Operating costs grew +15.4%, faster than revenue at +14.3%, so operating profit grew less than sales.
Net profit was ₹271 cr, +7.1% on the year and +34.8% on the quarter, with earnings per share of ₹9.14. Profit before other income, one-offs and tax grew 0.0%, so 7 points of the headline growth came from outside the core business. The tax rate of 26% is in line with its recent average.
Speciality chemicals are read on volumes and pricing, with Chinese supply a recurring swing factor; inventory destocking can hit a quarter without a change in demand. The quarterly statements do not carry volumes against prices, capacity utilisation and new molecules; those come with the filing read.
On earnings per share of ₹38.68 over the last four quarters, the stock at ₹2,459.70 trades at 63.6 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
Finance cost rose fast and now takes a large bite of operating profit. New borrowing, or a higher rate?
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹3,053 cr | ₹3,570 cr | ₹3,464 cr | ₹3,424 cr | ₹3,491 cr | ₹4,313 cr | ₹3,819 cr | ₹3,640 cr | ₹3,713 cr | ₹4,615 cr | ₹5,033 cr | ₹4,904 cr |
| YoY | — | — | +4% | +8% | +14% | +21% | +10% | +6% | +6% | +7% | +32% | +35% |
| EBITDA margin | 18.5% | 19.5% | 17.4% | 15.7% | 17.8% | 22.2% | 21.7% | 21.3% | 21.0% | 22.2% | 24.6% | 19.3% |
| Other income, % of PBT | 5% | 5% | 7% | 12% | 11% | 5% | 5% | 5% | −10% | 2% | 3% | 4% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 27% | 5% | 27% | 29% | 26% | 26% | 25% | 25% | 4% | 23% | 22% | 24% |
| Net profit | ₹253 cr | ₹422 cr | ₹252 cr | ₹201 cr | ₹271 cr | ₹526 cr | ₹432 cr | ₹388 cr | ₹433 cr | ₹582 cr | ₹759 cr | ₹509 cr |
| YoY | — | — | −30% | −33% | +7% | +25% | +71% | +93% | +60% | +11% | +76% | +31% |
| Core profit YoY | — | — | −33% | −35% | 0% | +60% | +71% | +96% | +51% | +11% | +73% | +32% |
| EPS | ₹8.55 | ₹14.24 | ₹8.51 | ₹6.79 | ₹9.14 | ₹17.75 | ₹14.58 | ₹13.10 | ₹14.60 | ₹19.63 | ₹25.60 | ₹17.18 |
| Flags | · | 1 | 2 | 1 | 1 | ✓ | ✓ | ✓ | 1 | ✓ | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
SRF Ltd. reported revenue of ₹3,491 cr (+14.3% on the year) and net profit of ₹271 cr (+7.1% on the year) for October to December 2024.
Profit before other income, exceptional items and tax moved 0.0% on the year, against +7.1% for reported profit.
1 check raised a question: Finance cost rose fast and now takes a large bite of operating profit. New borrowing, or a higher rate?
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