Q2 profit rises 31%, but margin narrows
SRF · price
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On the reaction day the stock moved 3.8 pts less than Nifty Midcap 150 and 1.9 pts less than its Specialty Chemicals peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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SRF's unaudited consolidated Q2 revenue rose 34.7% year on year to Rs 4,904.20 crore and net profit rose 31.2% to Rs 509.12 crore. In the first half, revenue grew 33.2% to Rs 9,937.46 crore and net profit 54.6% to Rs 1,267.99 crore. Q2 operating margin fell to 15.13% from 16.15%. Standalone operating cash flow remained positive at Rs 402.07 crore but fell from Rs 901.64 crore.
Profit growth supports sentiment, but margin and cash-flow weakness could cap near-term stock gains.