Specialty Chemicals company Chemplast Sanmar announced Q2FY25 results Financial Highlights: Revenue from Operations: Rs 993 crore compared to Rs 988 crore during Q2FY24, change 1%. EBITDA: Rs 26 crore compared to Rs 46 crore during Q2FY24, change -44%. EBITDA Margin 3% for Q2FY25. PAT: Rs -31 crore compared to Rs 26 crore during Q2FY24. PAT Margin -3% for Q2FY25. Other Highlights: PVC (both Suspension and Paste) witnessed price and margin pressures due to excessive dumping in Q2FY25. Suspension PVC: On a promising development, earlier this week, provisional anti-dumping duty has been announced when implemented, expected to address the issue of dumping. Paste PVC: Dumping from EU & Japan has undermined the impact of anti-dumping duty on other countries - being represented. Production of Paste PVC at the new Cuddalore facility is ongoing – expected to reach 100% by Q3FY25. Custom Manufactured Chemicals Division (‘CMCD’): CMCD registered a stable performance in Q2FY25. We have signed a new letter of intent (‘LoI’) with a global agrochemical innovator to supply an advanced intermediate for a new active ingredient. This is the 6th LoI we have signed in the last 2 years and it covers a period of 5 years. Prices of Chloromethanes improved while Caustic Soda and Hydrogen Peroxide prices remained stable. Projects Update: Phase 2 of the new multi-purpose production block (‘MPB’) is expected to be commissioned in Q3FY25. Project activities for phase 3 of the new MPB and the civil & infrastructure work for the next MPB have been initiated. Ramkumar Shankar, Managing Director, Chemplast Sanmar, said: “The company reported a topline of Rs. 2,138 crore for H1 FY ‘25 despite multiple headwinds. After a healthy performance in Q1FY25, PVC prices resumed their volatile trajectory due to excessive dumping and witnessed a significant downturn during the September quarter. Amidst this tough environment, we were able to deliver a reasonable performance during this quarter, with a revenue of Rs. 993 crore. Dumping of Paste PVC from the EU and Japan has circumvented the impact of anti-dumping duty on other countries. This is being taken up with the concerned authorities. Domestic demand for Suspension PVC softened due to the monsoon season, while China’s low-priced supply, driven by their weak local demand, continues to impact the market. In a positive development, earlier this week, provisional anti-dumping duties were announced on imports of Suspension PVC from China, the USA, Indonesia, Thailand, Taiwan, Korea, and Japan. We are hopeful that this will come into effect shortly and effectively address the serious issue of dumping of Suspension PVC into India. Custom Manufactured Chemicals Division (‘CMCD’) registered a stable performance in Q2FY25. We have signed a new letter of intent (‘LoI’) with a global agrochemical innovator to supply an advanced intermediate for a new active ingredient. This is the 6 th LoI we have signed in the last 2 years and it covers a period of 5 years The value-added chemicals# business registered a 6% revenue growth in Q2FY25, on a sequential basis with good recovery in prices of Chloromethanes while Caustic Soda and Hydrogen Peroxide prices remained stable. The CMCD expansion projects are progressing well with phase 2 of the new multi-purpose production block expected to be commissioned by Q3FY25. We have initiated project activities for phase 3 of the new multi-purpose production block and the civil & infrastructure work for the next multi-purpose production block. With recent capacity expansions and announced capex plans, we are confident in the long-term growth potential of our business. Our focus remains on enhancing operational efficiencies, elevating workforce skills, and fostering strong relationships to drive sustainable growth.” Result PDF
Conference Call with Chemplast Sanmar Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.