Chemplast Sanmar: Custom Chemicals Expansion on Track

Chennai, May 21 (PTI) Chemplast Sanmar Ltd, part of the SHL Chemicals Group on Tuesday said the phase II expansion of the Custom Manufactured Chemicals division was on track for completion.


The city-based company, engaged in the manufacturing of specialty chemicals declared revenues of Rs 1,051 crore for the January-March 2024 quarter as compared to Rs 1,147 crore registered during the same quarter of last year. Net loss for the quarter under review stood at Rs 31 crore as against a net profit of Rs 46 crore registered in the same period of last year.


In a statement, the company said Custom Manufactured Chemicals business was adversely impacted during the year by the overall slowdown in the global agrochemicals industry.


"The impact was partly offset by the commencement of supplies of new products under the first two Letter of Intents (LoI) signed in the last 12-15 months. As a result Custom Manufactured Chemicals division revenues were lower by 13 per cent," the company said.


The positive impact of the new products would be seen in the upcoming quarters, it said.


On the status of the company's projects, Chemplast Sanmar Ltd Managing Director Ramkumar Shankar said, "Construction of Phase 2 of the CMC expansion project is underway and we expect to complete this by the end of Q1-FY25."


"With the recent signing of the 4th Letter of Intent, the CMC division continues to make significant strides in growing the business. The pipeline of the CMC division continues to be robust," he said in the statement.


On the financial performance, Shankar said, "FY'24 has been one of the toughest years for the company in recent times. The year was marked with challenges on all fronts including pricing and margin pressures due to excessive dumping of PVC resins by China and other countries, the sharp correction in prices of Caustic Soda due to oversupply situation."


"Amidst these headwinds, we closed FY'24 with a topline of Rs 3,923 crore and an EBITDA of Rs 26 crore," he said.


On the outlook for the future, he said, "while the short-term challenges persist, we have laid the foundation to capitalise on the long-term prospects of each of our businesses and are confident of delivering a stronger performance in the future.