PL First Cut – SRF Ltd – Q2FY24

PL First Cut – SRF Ltd – Q2FY24 – Swarnendu Bhushan – Co – Head of Research, Prabhudas Lilladher Pvt Ltd

SRF Ltd – Q2FY24 Result Highlights – Challenges continue | CMP Rs 2173 | MCap Rs 6452 bn*

■ Revenue at Rs31.7 bn -15% YoY/ -5% QoQ (PLe ~Rs34.5bn) primarily driven by de-growth in chemicals segment (22% YoY/14% QoQ). In H1FY24, revenue decreased 15% YoY to Rs 65160mn from Rs 76220mn.

■ EBITDA at Rs6262mn -19% YoY/ -10% QoQ (PLe Rs7092mn/consensus esti – Rs 6860mn). EBITDA margin of 19.7% (vs 20.6% in Q2FY23 and 20.9% in Q1FY24; PLe ~20.5%).

■ PAT at Rs3008mn (-37% YoY/ -16% QoQ; PLe Rs3535mn consensus esti – Rs 3434mn) was impacted by lower operating profits both YoY & QoQ

Board has approved following two projects

o Rs2.4b for 600mtpa agrochem intermediate at Dahej, to be operational in 10m

o Rs2.8b for capacitor grade BOPP film at Indore to be operational in 31m.

We currently have ‘Hold’ rating with SoTP based TP at Rs 2143;