Chemplast Q1 net at Rs 24 cr; earmarks Rs 160 cr as capex
PVC prices temporarily revived during the quarter due to increased ocean freights. But, there has been a slippage in prices post the end of the quarter, as per a release.
Ramkumar Shankar
CHENNAI: Chemplast Sanmar Ltd, a speciality chemicals company with a significant presence in the custom manufacturing business, reported a net profit of Rs 24 crore in Q1FY25 compared to a loss of Rs 64 crore in Q1 of previous year.
PVC prices temporarily revived during the quarter due to increased ocean freights. But, there has been a slippage in prices post the end of the quarter, as per a release.
The company, a market leader in speciality paste PVC in India, and the second largest producer of suspension PVC in India (through its wholly-owned subsidiary), has also signed a new letter of intent (‘LoI’) with a global agrochemical innovator to supply an advanced intermediate for a recently launched active ingredient. This is its 5th LoI signed in the last 20 months.
The Board has also approved a further investment of about Rs 160 cr towards capacity expansion of the custom manufactured chemicals division at Berigai.
Ramkumar Shankar, MD, said, “We are pleased to update that the company has reported a total revenue of Rs 1,145 cr with an EBITDA of Rs 124 cr, a 11 per cent 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."
Noting that the revenue contribution from speciality chemicals grew by 61 per cent on Y-o-Y basis, he said this was supported by higher volumes of speciality paste PVC from the newly-commissioned facility at Cuddalore and the increased revenue from custom manufactured chemicals (CMC) division.
Value-added chemicals' revenue grew by 20 per cent on Y-o-Y due to higher volumes of caustic soda. Suspension PVC revenue has been stable in Q1 FY'25 compared to the corresponding period last year, while it has improved by 8 per cent sequentially. "We witnessed a positive swing in profits in the current year on account of improved prices of PVC and lower feedstock prices," Shankar said.
On the capex approved for CMC business, he said "along with our recent commissioning of the 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."
