Chemplast Sanmar Q3 results: Net loss narrows to ₹49 crore

The city-based company, part of the SHL Chemicals Group which is a constituent of diversified The Sanmar Group, had registered a net loss of ₹56 crore for the April-December 2024 period, as compared to ₹127 crore recorded in the year ago period.

In a statement on Saturday, the company said the business performance improved due to better prices and margins on Paste PVC (polyvinyl chloride), improved performance of Custom Manufacturing Chemicals division (CMCD) and also due to increased volumes of Paste PVC from the new manufacturing facility in Cuddalore.

"Though the performance of the PVC division was better when compared to last year, the PVC products (both Suspension and Paste) witnessed price and margin pressures due to excessive dumping in Q3 FY2024-25 amidst slower global demand. The company is hopeful of trade measures fructifying in the near future," the company said.

The revenue from operations surged to ₹1,058 crore, during the quarter under review from ₹888 crore recorded in the year ago period.

For the nine month period ending December 31, 2024 the revenue from operations grew to ₹3,195 crore, from ₹2,872 crore registered in the same period of last financial year.

Under the Custom Manufactured Chemicals Division, the company said it commissioned the phase-II of the multi-purpose production block 3 in December 2024.

The company also initiated project activities for phase-III of the Multi-Purpose Block (MPB) and also for civil and infrastructure work for MPB Phase IV also, the release said.

Commenting on the financial performance, Chemplast Sanmar Ltd Managing Director Ramkumar Shankar said, "The total revenue for the first nine months stood at ₹3,195 crore, a growth of 11% on year-on-year basis. This was largely on account of better prices and margins on the PVC businesses and improved performance of CMC Division."

The last couple of years have been challenging for the company, due to the dumping of product, especially of Suspension and Paste PVC, resulting in margin pressures. However, it is pertinent to note that the trend has been improving, with the current year showing a marked improvement over FY 2024, he said.

"Dumping of Suspension PVC from China and Paste PVC from the European Union have resulted in pricing headwinds and the consequent impact on margins," he said.

Domestic demand has been quite 'good' with the apparent consumption of Suspension PVC registering an 11% growth on a year-on-year basis in the 9-month period ending December 2024, while the Paste PVC registered a 13% growth over the same period, he added.

On Custom Manufactured Chemicals Division (CMCD), he said, "the Multi Purpose Block III, phase I has been ramping up well and we expect healthy business from the host of molecules which have been commercialised. The Phase II of MPB III was commissioned in December 2024. The pipeline of products under development is strong and is continuously growing with increase in new enquiries from customers."

The business of value-added chemicals including Caustic Soda, Chloromethanes and Hydrogen peroxide witnessed mixed demand trends across end-user industries, he said.

On the outlook for the year, he said, "We remain resilient and focused on expanding our capacities and capabilities, especially in the Speciality segment, to capitalise on improving market conditions."