Chemplast Sanmar cuts losses in Q3 on better prices and margins

Chennai
Chemplast Sanmar Ltd has significantly reduced its consolidated net loss to ₹49 crore for the quarter ended December 31, 2024, compared to ₹89 crore in the same period last year.

The improvement was driven by stronger pricing and margins in Paste PVC, better performance from the Custom Manufactured Chemicals Division (CMCD), and increased production volumes from its new Paste PVC plant, the company stated.

The Chennai-based chemicals manufacturer reported a 19 per cent increase in consolidated revenue at ₹1,058 crore, when compared with ₹888 crore in Q3 FY24. It also recorded an EBITDA of ₹32 crore, reversing an EBITDA loss of ₹7 crore in the corresponding period last year.

“For the first nine months of FY25, total revenue stood at ₹3,195 crore, reflecting an 11 per cent year-on-year growth. This was primarily due to improved pricing and margins in the PVC business, along with a strong performance from CMCD,” said Ramkumar Shankar, Managing Director of Chemplast Sanmar.

Showing improvement

The past two years have been difficult for the company due to product dumping, particularly in Suspension and Paste PVC, which put pressure on margins. However, the trend is showing improvement in FY25 compared to FY24, he added.

The company highlighted pricing headwinds due to the Suspension PVC imports from China and Paste PVC from the European Union, which affected margins. Despite this, domestic demand has remained strong. Suspension PVC consumption grew by 11 per cent year-on-year from April to December 2024, while Paste PVC demand increased by 13 per cent in the same period.

CMCD performance

CMCD continued to perform steadily in Q3 FY25, while the value-added chemicals segment, including Caustic Soda, Chloromethanes, and Hydrogen Peroxide, experienced mixed demand trends across industries. Volumes in this segment grew by 5 per cent in Q3 and 24 per cent over the first nine months of FY25, driven by consistent demand from various sectors.

The Suspension PVC industry has seen strong growth, supported by demand from the housing, construction, irrigation, and drinking water sectors. The company remains optimistic about future demand, particularly with the extension of the Jal Jeevan Mission to 2028, announced in the recent Union Budget, which is expected to drive further growth in Suspension PVC consumption.