SRF Q4 Results: Profit falls 7% on packaging margin hit

Indian chemicals and polymers maker SRF Ltd on Tuesday reported a 7.3% fall in fourth-quarter profit, hit by significant pressure on the margins of its packaging film business. Consolidated net profit after tax stood at 5.62 billion rupees ($68.7 million) for the three months ended March 31, compared with 6.06 billion rupees a year earlier, the Gurugram-based company said in an exchange filing. Cost of materials consumed rose 8.8%.

A spike in the prices of polypropylene and polyethylene films used in packaging film pulled the segment's revenue down 17%. The business faced "strong headwinds with significant pressure on margins" after several new lines got operationalized in India and overseas, the company said.

Revenue from sale of products rose 6% to 37.19 billion rupees.

Meanwhile, weak demand crimped sales in the technical textiles segment, which provides reinforcements to nylon and polyester yarns and fabrics. The segment reported a more than 13% fall in revenue due to lower sales of nylon tyre cord fabrics, SRF said.