SRF falls over 5% on disappointing Q3 results

The stock was down 8% to Rs 1,615 on the BSE in intra-day trade.

SRF dipped 8% to Rs 1,615 on the BSE in intra-day trade after the company reported flat consolidated EBITDA (earnings before interest, tax, depreciation and amortization) profit at Rs 238 crore for the quarter ended December 2016 (Q3) over the previous year quarter. EBITDA margin declined 80 basis points to 19.7% in Q3FY17 from 20.5% in Q3FY16.

During the quarter under review, the company’s consolidated net profit grew 8% at Rs 105 crore, while gross revenues increased by 3.5% at Rs 1,205 crore over the corresponding quarter of previous fiscal.

Analysts on an average had expected profit of Rs 98 crore on revenues of Rs 1,104 crore.

The company’s agro chemicals business, which accounts one-third of total revenue, witnessing subdued demand as adverse global macro-economic environment continues to impact the sector.

At 10:56 am; the stock was down 7% at Rs 1,631 as compared to 0.05% decline in the S&P BSE Sensex. A combined 365,657 shares changed hands on the counter on the BSE and NSE so far.