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.
Conference Call with Chemplast Sanmar Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Specialty Chemicals company Chemplast Sanmar announced Q3FY24 & 9MFY24 results: Financial Highlights: - Revenue from Operations (Q3FY24): Rs 888 crore, a decrease of 25% from Rs 1,189 crore in Q3FY23. - EBITDA (Q3FY24): (Rs 7 crore), non-meaningful comparison (nm) with Rs 78 crore in Q3FY23. - EBITDA Margin (Q3FY24): -1%, significant decline from 7% in Q3FY23. - PAT (Profit After Tax) (Q3FY24): (Rs 89 crore), PAT Margin at -10%, a significant downturn from Rs 27 crore, 2% in Q3FY23. - Revenue from Operations (9MFY24): Rs 2,872 crore, down by 24% from Rs 3,794 crore in 9MFY23. - EBITDA (9MFY24): Rs 5 crore, declined by 99% from Rs 371 crore in 9MFY23. - PAT (9MFY24): (Rs 127 crore), PAT Margin at -4%, decreased from Rs 106 crore, 3% in 9MFY23. Key Business Highlights: - Suspension PVC and Paste PVC prices decreased by 8% and 6% respectively on a quarter-over-quarter basis. - Caustic Soda and Chloromethanes prices remained flat compared to the previous quarter. - EDC (Ethylene Dichloride) prices saw an increase of 12.5% from Q2FY24 to Q3FY24. - Power costs rose marginally by around Rs 4 crore from the previous quarter. - Phase 1 expansion of the Custom Manufactured Chemicals division began commercial despatches. Projects Update: - Paste PVC expansion project is expected to be commissioned in Q4FY24. - Phase 2 of the Custom Manufactured Chemicals expansion is projected to be completed in Q1FY25. Ramkumar Shankar, Managing Director, stated: "After a relatively better Q2FY24, Q3FY24 performance ran into heavy weather due to further correction in PVC prices on account of dumping from China and other countries, slow down in the Other Chemicals business due to the over-supply situation in India, increase in key feedstock prices and adverse impact of the lag effect in correction of VCM prices. However, the boom in the infrastructure and real estate sectors is driving the strong demand for PVC. We expect a gradual recovery in prices and margins over the next 2-3 quarters. The Other Chemicals business is also expected to witness improvement in prices in the next 3-4 quarters once the excess supply is absorbed by the market. In our Custom Manufactured Chemicals Division's business, the pipeline is healthy. We commercialised 3 new products this year and a number of products are under various stages of development. Despite the challenges on account of the downturn in the global agrochemicals industry and the consequent inventory rationalisation, we expect this business to deliver reasonable growth during the year. While commercial production from Phase 1 of the expansion project has commenced, Phase 2 is expected to be completed in Q1FY25. The 41 ktpa Paste PVC project is expected to start commercial production in Q4FY24. This will further cement our position as the leading Paste PVC producer in India. Despite the recent uncertainty in the industry, we are confident of the long term potential of all our businesses and are strengthening our capabilities and relationships to grow in a sustainable manner." Result PDF