Chemplast Sanmar’s profit slides to Rs 89 crore in Q3

CHENNAI: Speciality chemicals company Chemplast Sanmar reported a loss of Rs 89 crore for the October to December quarter of 2023 compared to a profit after tax (PAT) of Rs 27 crore for the same quarter in the last financial year.

As per Ramkumar Shankar, MD, “after a relatively better Q2 FY24, Q3 FY24 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 (caustic soda, chloromethanes, hydrogen peroxide, refrigerant gases) business due to the over-supply situation in India, increase in key feedstock (EDC and Ethylene) prices and adverse impact of the lag effect in correction of VCM prices.”

Revenues from operations saw a slide of 25 per cent to Rs 888 crore in the quarter ended December 31, 2023 from Rs 1,189 crore in the same period of the previous year.

For the nine months ending December 31, 2023, the consolidated net loss was at Rs 127.30 crore, as compared to Rs 106.27 crore registered a year ago.

Chemplast, the second largest producer of suspension PVC in India, is expected to commission the paste PVC expansion project in Q4 FY24. Its custom manufactured chemicals Phase II expansion project is slated to be completed in Q1 FY25, as per a release.

Shankar also said its 41 ktpa Paste PVC project is expected to start commercial production in Q4 FY24. “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,” he added.