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.
Conference Call with Chemplast Sanmar Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
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