Speciality Chemicals company Chemplast Sanmar announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Revenue from Operations decreased by 8% to Rs 1,051 crore compared to Rs 1,147 crore in Q4FY23. EBITDA declined significantly by 78% to Rs 21 crore compared to Rs 97 crore in Q4FY23. EBITDA Margin decreased to 2.0% from 8.5% in Q4FY23. Profit after Tax (PAT) recorded a loss of Rs 31 crore, marking a negative trend compared to a profit of Rs 46 crore in Q4FY23. PAT Margin also turned negative to -3.0% from 4.0% in Q4FY23. FY24 Financial Highlights: Revenue from Operations for FY24 decreased by 21% to Rs 3,923 crore compared to Rs 4,941 crore in FY23. EBITDA for FY24 plummeted by 94% to Rs 26 crore compared to Rs 468 crore in FY23. EBITDA Margin declined to 0.7% from 9.5% in FY23. Profit after Tax (PAT) for FY24 incurred a loss of Rs 158 crore, contrasting with a profit of Rs 152 crore in FY23. PAT Margin remained negative at -4.0% compared to 3.1% in FY23. Commenting on the results, Ramkumar Shankar, Managing Director, said, “From a financial performance perspective, FY24 has been one of the toughest years for the Company in recent times. The year was marked with challenges on all fronts including pricing and margin pressures due to excessive dumping of PVC resins by China and other countries, sharp correction in prices of Caustic Soda and Chloromethanes due to the over-supply situation in the country and slow-down in the agrochemicals sector resulting in deferment of supplies by the CMC division. Amidst these headwinds, we closed FY24 with a topline of Rs 3,923 crore and an EBITDA of Rs 26 crore. There are, however, a number of positive factors which bode well for the future – these include the continuing strong demand outlook for PVC resins resulting from a boom in real estate and infrastructure sectors, issue of a Quality Control Order on PVC resin and the significant progress in the investigation for imposition of ADD on PVC imports. Collectively, these are likely to lead to a correction in PVC prices over the next 2-3 quarters. The Other Chemicals business is likely to stabilise over the next 3-4 quarters. CMC division is also expected to see the positive impact of the new products in the upcoming quarters. During this difficult period, the Company has been resilient and focused on setting up capacities and capabilities which are likely to bear fruit once the overall scenario improves. We added 41kt of Paste PVC capacity during the quarter. This capacity is aimed at fulfilling domestic demand via import substitution and is expected to be ramped up by Q2FY25. This additional capacity further strengthens our leadership position in Paste PVC in India. Further, construction of Phase 2 of the CMC expansion project is underway, and we expect to complete this by the end of Q1FY25. With the recent signing of the 4th LoI, the CMC division continues to make significant strides in growing the business. The pipeline of the CMC division continues to be robust. While the short-term challenges persist, we have laid the foundation to capitalise on the long-term prospects of each of our businesses and are confident of delivering a stronger performance in the future.” Result PDF
Conference Call with Chemplast Sanmar Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.