CHENNAI:
Chemplast Sanmar
Limited, a speciality chemicals company with a significant presence in the
custom manufacturing business
, on Monday reported a loss of Rs 89 crore in the quarter ended December 31, 2023.
In the corresponding period last year, the company, which also manufactures suspension PVC, posted a profit after tax (PAT) of Rs 27 crore. On the sequential basis, its PAT stood at Rs 26 crore during the second quarter of FY24.
Revenue
from operations dipped by 25% in the quarter ended December 31, 2023 at Rs 888 crore against Rs 1,189 crore in the same period previous year.
Ramkumar Shankar, managing director, Chemplast Sanmar, said, “After a relatively better Q2 FY24, the
Q3 FY24
performance ran into heavy weather due to further correction in PVC prices on account of dumping from China and other countries, slowdown in the other chemicals (caustic soda, chloromethanes, hydrogen peroxide and refrigerant gases) business due to the over-supply situation in India, increase in key feedstock (EDC and Ethylene) prices and adverse impact of the lag effect in correction of VCM prices."
However, the boom in the infrastructure and real estate sectors is driving the strong demand for PVC. "We expect a gradual recovery in prices and margins over the next 2-3 quarters. The other chemicals business is also expected to witness improvement in prices in the next 3-4 quarters once the excess supply is absorbed by the market," he added.
In the custom manufactured chemicals division business, the commercial production from phase 1 of the expansion project has commenced, while phase 2 is expected to be completed in Q1 FY25, a statement here said. The 41 ktpa Paste PVC project is expected to start commercial production in Q4 FY24, it added.
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