The shares of the specialty chemicals manufacturer fell up to 9 percent after the company’s net profit and revenue decreased by 430 percent and 25 percent YoY, respectively in the third quarter.
With a market capitalization of Rs 7,020.07crore, the shares of Chemplast Sanmar Ltd were trading at Rs 444.00 per share, decreasing around 2.65 percent as compared to the previous closing price of Rs 456.10 apiece.
Looking into the company’s Performance, Chemplast Sanmar Ltd’s revenue decreased by 10 percent on a quarter-on-quarter basis from Rs. 988 crores in Q2FY24 to Rs. 888 crores in Q3 FY24. Furthermore, revenue declined by 25 percent year on year from Rs. 1,189 crores in Q3FY23 to Rs.888 crores in Q3FY24.
Chemplast Sanmar Ltd’s net profit decreased on a quarter-on-quarter basis from a profit of Rs.26 crores in Q2FY24 to a loss of Rs. 89 crores in Q3FY24. Further, net profit decreased yearly from a profit of Rs. 27 crores in Q3FY23 to a loss of Rs.89 crores in Q3FY24.
The company’s paste PVC expansion project is anticipated to begin in Q4 FY ’24, and the Custom Manufactured Chemicals Phase 2 expansion project is expected to be finished in Q1 FY 25.
In the paste PVC segment, the company has a leadership position in the Indian market; Post expansion, CSL will have 83 percent of domestic production capacity and 66 percent market share with the downstream capacities configured to CSL’s resin quality.
In the past year, CCVL (a wholly-owned subsidiary of Chemplast) achieved a key milestone by successfully completing the optimization of the Suspension PVC facility, enhancing the capacity by 31 ktpa. This was done with a minimal capex of Rs 23 Crores.
Chemplast Sanmar manufactures Specialty Chemicals such as Specialty Paste PVC resin and Custom Manufactured Chemicals for the agrochemical, pharmaceutical, and fine chemicals industries. Other chemicals produced by the firm include caustic soda, chlorochemicals, hydrogen peroxide, refrigerant gas, and industrial salt.
Written by Abhishek Singh
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