Chemplast Sanmar (CHEMPLASTS) Q2 24/25 earnings summary

Executive summary

• H1 FY 2025 revenue reached INR 2,138 crores, up 8% year-over-year, despite headwinds from PVC price volatility and dumping pressures.

• Q2 FY 2025 revenue was INR 993 crores, with EBITDA at INR 26 crores and a net loss of INR 31 crores, reflecting margin pressures from PVC dumping and increased costs.

• Provisional anti-dumping duties on Suspension PVC imports were implemented, expected to alleviate dumping issues.

• Specialty and Value Added Chemicals divisions delivered strong volume and revenue growth, supported by new capacity and custom manufacturing agreements.

• Un-audited standalone and consolidated financial results for the quarter and half year ended 30th September 2024 were approved, with statutory auditors issuing an unmodified limited review report.

Financial highlights

• Q2 FY 2025 consolidated revenue was INR 992.75 crores, with H1 FY 2025 revenue at INR 2,138 crores, up 8% year-over-year.

• Q2 FY 2025 EBITDA was INR 26 crores, down from INR 46 crores in Q2 FY 2024; net loss of INR 31 crores versus net profit of INR 26 crores last year.

• H1 FY 2025 EBITDA was INR 150 crores, up from INR 11 crores in H1 FY 2024; net loss for H1 FY 2025 was INR 57 crores.

• Basic and diluted EPS (consolidated) for Q2 FY 2025 was INR (1.95), compared to INR 1.65 in Q2 FY 2024.

• Gross margin in Q2 improved 11% year-over-year to INR 369 crores.

Outlook and guidance

• Management expects improved performance in H2 FY 2025, supported by anti-dumping duties, post-monsoon demand recovery, and new capacity expansions.

• Specialty Chemicals segment is on track for significant growth in FY 2025, with new capacity and customer contracts.

• Margins for Speciality Paste PVC and Suspension PVC are expected to improve as global demand tightens.

• Short-term realizations for Caustic Soda, Chloromethanes, and Hydrogen Peroxide are under pressure but expected to stabilize.

• The company continues to focus on its core business of speciality chemicals, with the majority of sales in the domestic market.