Strong chemicals business outlook likely to support the SRF stock

This could aid overall profitability, even though other segments may see margin moderation

The chemicals segment was yet again the driver of revenue and operating profits for SRF, India’s largest specialty chemicals firm by market capitalisation. The firm posted 36 per cent growth in consolidated revenue in Q4FY22, led by the chemicals segment, which grew at the same clip.

The segment, which acco­unted for 44 per cent of revenue, has grown around 28 per cent year-on-year (YoY) for five consecutive quarters. Sales growth in the quarter, according to the company, was led by higher volumes and realisation across all hydrofluorocarbons (refrigerants) in dom­estic and export markets. New launches and strong demand helped the