Chemplast Sanmar net profit in Q4 down 80 per cent to Rs 46 cr

CHENNAI: Speciality chemicals company Chemplast Sanmar reported an 80 per cent dip in net profit in Q4 of 2022-23 to Rs 46 crore compared to Rs 232 crore during the same quarter of 2021-22.

The second largest producer of suspension PVC in India saw its net profit plunge by 77 per cent to Rs 152 crore in fiscal 2022-23 against to Rs 649 crore in 2021-22.

Ramkumar Shankar, MD, Chemplast Sanmar sought to highlight the challenging environment this year caused by the run-up in energy prices due to the Russia-Ukraine war. Despite “The severe impact on Chinese demand due to their zero-COVID policy for the most part of the year, and rising interest rates across the globe, we closed the year with a decent performance with a top-line of Rs 4,941 crore and 9.5 per cent EBITDA margin,” he said. For the full year, revenues were lower by 16 per cent as compared to the last year’s Rs 5,892 crore – however, sales volumes of almost all the products were higher on a Y-o-Y basis. Falling prices of finished goods coupled with increase in energy costs have resulted in reduction of EBITDA margin during the year.

During the quarter under review, revenue from operations dipped by 37 per cent to Rs 1,147 crore versus Rs 1,804 crore during the Q4 of FY22. “On a consolidated basis, the balance sheet continues to remain healthy with a cash and bank balance of Rs 1,192 crore and the company continues to be net cash positive,” he said, in a release. “Our custom manufacturing business has been a silver lining amidst the sluggishness witnessed by the other businesses. Growth in this business continues to be strong, with a Y-o-Y revenue growth of 26 per cent in FY ’23. We have signed LOIs for two molecules in the last nine months with a revenue potential of Rs 800 crore over the next four years,” Shankar said.