SRF to invest on new refrigerant plants after profit drops to Rs 201.42 crore

New Delhi: Chemical company SRF Ltd announced a 33 pc drop in its combined net earnings to Rs 201.42 crore in the second quarter of this financial year due to increased costs. The firm also revealed intentions to allocate Rs 1,100 crore towards constructing new facilities for producing fourth-generation refrigerants. The company reported a net profit of Rs 300.78 crore in the same period in 2023. 

In a regulatory filing, the company stated that its total revenue increased to Rs 3,457.63 crore from Rs 3,206.48 crore in the same period last year while Total expenses of the company rose to Rs 3,173.97 crore in the second quarter from Rs 2,791.67 crore in the previous year. 

Company expenses rose in second quarter

Ashish Bharat Ram, Chairman and Managing Director of SRF, stated that the performance in this quarter was predictably low, but he thinks that the worst is over now. "We can expect to see progress from this quarter on, and there is a good chance of ending the year on a high note,"  Ashish Bharat Ram said according to reports.

SRF also stated that its Board of Directors has given their approval for a plan to establish new production facilities for fourth generation refrigerants in Dahej, Gujarat, or another suitable location at an estimated cost of approximately Rs 1,100 crore.

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The company revealed that the financing will come from internal accruals and borrowings. These facilities are designed to meet future needs for refrigerants that have a much lower global warming potential (GWP) and to assist in reducing carbon footprint. The plant is anticipated to be funded and put into operation within approximately 30 months. 

SRF Ltd, which is headquartered in Delhi-NCR, operates in the technical textiles, chemicals, and packaging film industries. The company operates 13 manufacturing facilities in India and has one plant in Thailand, South Africa, and Hungary each. It sells products to over 100 countries.

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