Indian chemicals maker SRF posts Q2 profit fall on weak global demand

SRF

27/10/2023 10:39

BENGALURU, Oct 27 (Reuters) - Indian chemicals and polymers maker SRF  SRFL.NS  on Friday reported a fall in second-quarter profit, its
third-consecutive fall in quarterly profit, hurt by weak global demand for its mainstay chemicals business and packaging film business. 
    Consolidated net profit after tax stood at 3.01 billion rupees ($36.2 million) for the July-September, compared with 4.81 billion rupees a year
ago. 
    Total revenue from operations fell nearly 15% to 31.21 billion rupees. 
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        KEY CONTEXT
  
    Indian chemical companies have seen a slump in global demand amid falling crop prices and lower rates of Chinese supplies. 
        Rival Coromandel International  CORF.NS  on Thursday reported a fall in September quarter profit, as demand for its fertilizers and
nutrients plummeted.
    
    PEER COMPARISON 
                                                    Valuation (next 12 months)      Estimates (next 12    Analysts' sentiment              
                                                                                    months)                                                
                                        RIC         PE     EV/EBITDA                Revenue     profit    Mean     Number   Stock to       Div
                                                                                    growth      growth    rating   of       price target   yield
                                                                                                                   analyst                 (%)
                                                                                                                   s                       
 SRF Ltd                                 SRFL.NS    27.57  16.54                    10.21       8.61      BUY      25       0.81           0.38
 Coromandel International Ltd            CORF.NS    14.34  9.73                     -3.61       5.68      STRONG   9        0.88           1.12
                                                                                                          BUY                              
 Deepak Fertilisers and Petrochemicals   DPFE.NS    8.73   6.46                     3.84        NULL      BUY      1        0.90           1.62
 Corp Ltd                                                                                                                                  
 PI Industries Ltd                       PIIL.NS    29.38  21.36                    21.32       20.58     BUY      23       0.78           0.30
 
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
    
    JULY-SEPT STOCK PERFORMANCE
    
    
    
    -- All data from Refinitiv
    -- $1 = 83.1860 rupees


($1 = 83.1980 Indian rupees)

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JULY-SEPTEMBER PERFORMANCE    https://tmsnrt.rs/3SfM8na
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 (Reporting by Manvi Pant in Bengaluru; Editing by Nivedita Bhattacharjee)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))