Chemplast Sanmar (CHEMPLASTS) Q3 24/25 earnings summary

Executive summary

• Revenue for Q3 FY25 grew 19% year-over-year to INR 1,058 crore, with EBITDA turning positive at INR 32 crore versus a loss last year.

• Net loss narrowed to INR 49 crore in Q3, compared to INR 89 crore loss in Q3 FY24; 9M FY25 PAT loss reduced to INR 56 crore from INR 127 crore in 9M FY24.

• Nine-month revenue reached INR 3,195 crore, up 11% year-over-year, driven by improved PVC prices and CMC division performance.

• Business performance in Q3 FY25 improved due to higher Paste PVC volumes from the new Cuddalore plant and stable CMCD operations.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024, with statutory auditor's limited review yielding an unmodified conclusion.

Financial highlights

• EBITDA for the nine months was INR 182 crore, a sharp increase from INR 5 crore in the prior year.

• Q3 FY25 consolidated revenue rose 19% year-over-year to ₹1,058 crore; EBITDA improved to ₹32 crore from a loss of ₹7 crore in Q3 FY24.

• Net loss for nine months reduced to INR 56 crore from INR 127 crore year-over-year.

• Finance costs rose 34% year-over-year to INR 174 crore, mainly due to project financing.

• Standalone revenue from operations for Q3 FY25 was ₹585.92 crore, up from ₹439.11 crore in Q3 FY24; consolidated revenue was ₹1,057.55 crore, up from ₹888.10 crore year-over-year.

Outlook and guidance

• Expectation of full utilization at the new Cuddalore Paste PVC plant in coming quarters.

• CMC business projected to close FY25 with healthy revenue growth and remains a key growth driver.

• Demand for Suspension PVC is expected to remain strong, supported by government initiatives like the Jal Jeevan Mission extension.

• Focus remains on expanding specialty segment capacities and leveraging improving market conditions.

• Management continues to focus on operational efficiency and cost control, with ongoing evaluation of tax strategies to optimize future results.