SRF Ltd Plans Major Investment in Eco-Friendly Refrigerant Facilities

SRF Ltd announced a 33% dip in Q2 net profit, attributing the decline to increased expenses. Despite this setback, the chemical firm plans to invest Rs 1,100 crore in new facilities to produce eco-friendly refrigerants, projecting an improvement in financial performance moving forward.

Chemical giant SRF Ltd reported a significant 33% drop in its consolidated net profit for the second quarter, citing elevated expenses as the primary cause. The firm's earnings fell to Rs 201.42 crore from Rs 300.78 crore in the same period last year, according to a recent regulatory filing.

Despite the financial downturn, the company revealed its intentions to invest Rs 1,100 crore in building new facilities dedicated to manufacturing fourth-generation refrigerants. These new plants aim to significantly lower global warming potential and reduce the carbon footprint.

SRF's Chairman and Managing Director, Ashish Bharat Ram, expressed optimism in the firm's trajectory, predicting improvements in the upcoming quarters. The Board of Directors approved the project, which is expected to be operational within 30 months, financed through a mix of internal accruals and borrowings.

(With inputs from agencies.)