Speciality Chemicals company Chemplast Sanmar announced Q1FY25 results: Revenue from Operations: Rs 1,145 crore in Q1FY25, a 15% increase compared to Rs 996 crore in Q1FY24 and a 9% increase from Rs 1,051 crore in Q4FY24. EBITDA: Rs 124 crore in Q1FY25, a significant improvement from a negative EBITDA of Rs 35 crore in Q1FY24 and Rs 21 crore in Q4FY24. EBITDA Margin: 11% in Q1FY25, reversing from -3% in Q1FY24 and up by 2 percentage points from the margin in Q4FY24. Profit After Tax (PAT): Rs 24 crore in Q1FY25, recovering from a loss of Rs 64 crore in Q1FY24 and a loss of Rs 31 crore in Q4FY24. PAT Margin: 2% in Q1FY25, compared to -6% in Q1FY24 and -3% in Q4FY24. Commenting on the results, Ramkumar Shankar, Managing Director, said, “We are pleased to update that the company has reported the total revenues of Rs 1,145 crore with an EBITDA of Rs 124 crore, an 11% margin during Q1 FY ‘25. The first quarter of the financial year has started on a positive note registering a noteworthy profitability, showing a sign of improvement both on Y-o-Y and on sequential basis. The revenue contribution from Speciality chemicals grew by 61% on Y-o-Y basis which is supported by higher volumes of Speciality Paste PVC from the newly commissioned facility at Cuddalore and the increased revenue from Custom manufactured Chemicals Division. Value-added chemicals‘ # revenue grew by 20% on Y-o-Y due to higher volumes of Caustic Soda. Suspension PVC revenue has been stable in Q1 FY ‘25 as compared to the corresponding period last year, while it has improved by 8% sequentially. We witnessed a positive swing in profits in the current year on account of improved prices of PVC and lower feedstock prices. The improvement in PVC prices was largely due to a severe container shortage for cargo originating from China – however, these heightened freight rates have started dropping off post the end of the quarter. This, coupled with continued weakness in the Chinese economy and large volumes of low-priced imports coming in from China, has resulted in PVC prices dropping in July. The decision on the anti-dumping petition on Suspension PVC, filed by the domestic industry, is expected only by Q3 of the current financial year. On the CMC business, an investment of about Rs 160 crores have been approved by the board of directors towards capacity expansion. This capacity expansion reiterates our commitment to grow the CMC business. Along with our recent commissioning of state-of-the-art R&D;, pilot and production blocks, this new investment is a reflection of our strong product pipeline and the pace at which we commercialise new products. Further, we have recently signed a new Letter of Intent (‘LoI’) with an agrochemical innovator for an advanced intermediate for a new active ingredient. This LoI is for a period of 5 years. Besides broadening the customer base, this LoI also gives us an opportunity to participate in a newly launched molecule. This is the 5 th LoI that we have signed over the past 20 months. This also echoes our customers’ confidence in Chemplast Sanmar’s wide range of chemical processes and R&D; capabilities. I am thankful for the hard work and perseverance of our team of chemists and engineers. Going forward, the demand environment across our speciality product portfolio continues to remain strong. From a Suspension PVC perspective, we see robust demand coming in from the infra-led irrigation projects.” Result PDF
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.