Chemplast Sanmar, a leading manufacturer of chemicals and allied products, has reported impressive numbers for the December 2021 quarter and the first 9 months of this fiscal on the back of strong growth in revenue and profits.

The Chennai-headquartered company, which re-entered the capital market with an IPO in August 2021, has reported a 48 per cent increase in its consolidated profit after tax (PAT) at ₹237 crore for the quarter ended December 31, 2021, against ₹160 crore in the same period the previous year.

EBITDA increased 25 per cent year-on-year to ₹353 crore from ₹283 crore last year. Though energy costs have gone up, the company was able to adjust it through price correction of finished products.

Consolidated revenue grew 33 per cent to ₹1,452 crore (₹1,088 crore), on account of higher realisations per tonne of its key products — Specialty Paste PVC resin, Suspension PVC, chloromethanes and caustic soda.

“Our specialty chemicals business continued to be strong in the quarter with Paste PVC registering a higher realisation, resulting in healthy margins. After reaching all-time highs in October, Paste PVC prices corrected a bit and are now trading close to $1,700 – 1,750/tonne. In the near to medium-term horizon, we expect prices to be range-bound,” said Ramkumar Shankar, Managing Director, Chemplast Sanmar.

For the 9 months ended December 31, 2021, the company’s PAT zoomed to ₹417 crore from ₹46 crore. Chemplast Sanmar’s PAT last year was impacted by profit / (loss) from its joint ventures and associate companies which saw ₹111 crore gain in Q3FY21 and ₹108 crore loss in 9MFY21. These investments were delinked in March 2021

EBITDA grew 67 per cent to ₹850 crore from ₹511 crore. Revenue stood at ₹4,085 crore against ₹2,457 crore, an increase of 66 per cent.

Capacity expansion

Shankar said the company was carrying out a ₹620 crore capacity expansion programme and it received environmental clearance for Specialty Paste PVC expansion, which will see the company add 35,000 tonnes a year under Phase 1

Debottlenecking of Suspension PVC capacity by 10 per cent is expected to come on stream by Q1FY23. This is a phased debottlenecking, a part of which is already completed.

“We are very focused on delivering what we committed to our investors and hopefully the results for the 9 months exceeded expectations. Right now, we are working on 100 per cent execution of the projects in compliance with environmental and safety norms. We hope the company is recognised as the most compliant in our industry which and that will aid us to grow the specialty business especially with the international customers,” said Vijay Sankar, Chairman of Chemplast Sanmar.

Meanwhile, the Board of the Company at their meeting held on Friday appointed N Sankar as Chairman Emeritus with immediate effect for a life term on an honorary basis. No remuneration in any form whatsoever is proposed to be paid to him. He will not be a member of the Board of the Company, said a company communication to stock exchanges.

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