Chemical firm SRF Ltd today reported 22 per cent decline in its net profit at Rs 98.65 crore for the September quarter and announced setting up of a plant with an investment of Rs 356 crore.
Its net profit stood at Rs 127.14 crore in the year-ago period, the company said in a regulatory filing.
Total income increased to Rs 1,301.64 crore in the second quarter of this fiscal from Rs 1,222.30 crore in the corresponding period of the previous year.
"The board approved setting up of an integrated facility to produce HFCs (hydro flouro carbons) and AHF (anhydrous hydrogen flouride) at an estimated cost of Rs 356 crore," SRF said in a statement.
This cost includes acquisition of HFC 125 assets and technical know-how from a global HFC player.
SRF MD Ashish Bharat Ram said: "It has been a tough quarter for the company. The specialty chemicals business has remained under pressure but green shoots are clearly visible. We believe the worst is behind us and the growth momentum should return."
The other business segments have performed reasonably well in a tough market scenario, he added.
SRF said in statement that technical textiles business reported a marginal decline of 1 per cent in its segment revenue to Rs 476 crore from Rs 481 crore during the period under review.
The operating profit of the technical textiles business decreased by 11 per cent to Rs 57 crore from Rs 64 crore.
The segment revenue of the chemicals and polymers business increased by 4 per cent from Rs 386 crore to Rs 401 crore during the second quarter of financial year 2017-18 over the year-ago period. The operating profit fell by 23 per cent from Rs 68 crore to Rs 53 crore.
The packaging films business reported an increase of 18 per cent from Rs 349 crore to Rs 411 crore. The operating profit decreased by 6 per cent from Rs 53 crore to Rs 50 crore.