Chemplast Sanmar Resurgent: ₹24 Crore Profit, ₹160 Crore Expansion

Chemplast Sanmar Ltd has staged a remarkable turnaround in its financial performance for Q1FY25, reporting a net profit of ₹24 crore, reversing last year’s ₹64 crore loss. This recovery is largely credited to a rebound in PVC prices, which significantly bolstered the company's earnings. 

The firm’s revenue from operations surged by 15% to ₹1,145 crore, up from ₹996 crore year-on-year, while EBITDA hit ₹124 crore, maintaining an 11% margin. The price spike in PVC was initially fueled by a severe container shortage from China, but prices have since softened due to declining freight rates and increased low-priced imports. 

Specialty chemicals saw a notable revenue increase of 61%, driven by higher volumes from a new facility in Cuddalore and growth in the Custom Manufactured Chemicals Division. Value-added chemicals also enjoyed a 20% revenue rise.

 Looking forward, Chemplast Sanmar has approved a ₹160 crore investment for expanding capacity at Berigai to further enhance its custom manufactured chemicals division. This strategic move underscores the company’s commitment to growth and innovation, as highlighted by Managing Director Ramkumar Shankar.

News by Rahul Yelligetti