• Home
  • Contact Us!
  • Privacy Policy

Radio Metta

  • Home
  • Business
  • Education
  • Health
  • Home Deco
  • News
  • Real Estate
  • Technology
  • Contact Us!
  • Privacy Policy
Home» Business»For SRF, the chemicals business is keeping growth momentum steady

For SRF, the chemicals business is keeping growth momentum steady

Loknath Das 07 Aug 2019 Business Comments Off on For SRF, the chemicals business is keeping growth momentum steady 771 Views

The outlook for specialty chemicals is encouraging. (Bloomberg )

Shares of SRF Ltd surged 13% on Tuesday after the company impressed with a better-than-expected June quarter performance.

Revenue growth, though, slowed to 9% year-on-year in the quarter, tracking the deceleration in its technical textiles business. But better profitability at its packing-films business saw operating profits rise to a decent 13%. Profit after tax was up 41%.

Revenues and operating profits at the technical textiles division dropped, reflecting the slowdown in the automobile industry. Operating profit at the chemicals division, which has been a growth driver, was flat due to a manufacturing plant closure.

However, the packing-films business saw 50% jump in operating profit, which benefited from higher sales of value-added products. Both gross and operating profit margins expanded, driving net earnings.

Further, the outlook for two key business segments, packing films and technical textiles, is clouded by overcapacity and demand slowdown. Capacity additions in the packing-films business can disturb the demand-supply equilibrium in the short term, warned SRF. Prospects for technical textiles have been constrained by the economic slowdown and low demand from the automobile industry.

Still, overpowering these concerns are opportunities in the chemicals business. The fluorochemicals segment is seeing steady growth. The company developed a new refrigerant, which it plans to sell under its brand. It launched sales of branded Floron refrigerant products in South Africa in addition to Thailand and India, SRF said in a presentation to investors.

The outlook for specialty chemicals is encouraging. A slowdown in global agrochemicals notwithstanding, the company is seeing good demand for its flagship products. It launched two intermediaries in the agro segment and two molecules in the pharma segment. Similar to fluorochemicals, focus here, too, is on market expansion through product launches.

Pharma is also seeing good growth. Changing weather patterns and resultant slowdown in some regions are headwinds for the agrochemicals business, though.

SRF and other Indian companies are benefiting from the ongoing diversification by global firms, which is resulting in slack in procurement from China. Indian companies, including SRF, are making timely investments to capture this demand. Chemical manufacturers, such as PI Industries Ltd, maintained its double-digit growth forecast for FY20 despite subdued demand trends in the domestic market.

Meanwhile, Tuesday’s gains in the SRF stock come on top of the 43% increase over the past year. The stock now trades at 19 times FY20 and 15 times FY21 earnings per share estimates. Still, this is not particularly inexpensive.

[“source=livemint”]

business Chemicals for growth Is keeping Momentum SRF steady the 2019-08-07
Tags business Chemicals for growth Is keeping Momentum SRF steady the
Facebook Twitter Stumble linkedin Pinterest More

Authors

Posted by : Loknath Das
Previous Article :

Will scrapping on Article 370 open up real estate sector in J&K, Ladakh?

Next Article :

Key Apple Health researcher departs for new role at the Gates Foundation

Related Articles

Step up: Tips for organizations from the FTC’s settlement with Genshin Effect designer HoYoverse

Step up: Tips for organizations from the FTC’s settlement with Genshin Effect designer HoYoverse

admin 07 Feb 2025
The main 3 showcasing challenges for independent companies (and how mechanization can tackle them)

The main 3 showcasing challenges for independent companies (and how mechanization can tackle them)

admin 24 Sep 2024
The most effective method to Begin a Blog (and Bring in Cash) in 6 Stages: Simple Fledgling’s Aide

The most effective method to Begin a Blog (and Bring in Cash) in 6 Stages: Simple Fledgling’s Aide

admin 19 Sep 2024

Latest Post

Clinical Trial Considerations for Infectious Disease Rapid Diagnostics: From Sample to Result in Record Time
Health

Clinical Trial Considerations for Infectious Disease Rapid Diagnostics: From Sample to Result in Record Time

admin 04 Oct 2025

Michael Kremer on the Andhra Pradesh PAL Study’s evidence of personalized adaptive learning in India

admin 22 Sep 2025
Digital Dermatology with Freedom 360: Skin Cancer Checks and Expert Care for Members
Health

Digital Dermatology with Freedom 360: Skin Cancer Checks and Expert Care for Members

admin 15 Sep 2025
Small, Rural Central California High School Continues To Defy Standardized Education
Education

Small, Rural Central California High School Continues To Defy Standardized Education

admin 12 Sep 2025
Speeches delivered by CEO Sundar Pichai at the White House AI Education Taskforce
Education

Speeches delivered by CEO Sundar Pichai at the White House AI Education Taskforce

admin 08 Sep 2025
How is PSA used to monitor prostate cancer?
Health

How is PSA used to monitor prostate cancer?

admin 01 Sep 2025
The Future of High Performance Networking: Ultra Ethernet Explained
Technology

The Future of High Performance Networking: Ultra Ethernet Explained

admin 28 Aug 2025
October 2025
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Sep    
  • Home
  • Contact Us!
  • Privacy Policy
Copyright 2016, All Rights Reserved
Magazine Blog News WordPress Theme