Chemplast Sanmar (CHEMPLASTS) Q4 17/18 earnings summary

Executive summary

• FY18 delivered record pre-exceptional PBT of ₹393.22 crore, up 7% YoY; PAT rose to ₹178.61 crore from ₹150.24 crore.

• Stronger Cuddalore volumes and margins, lower operating costs, and firm PVC prices supported results; reported sales are not comparable YoY because GST replaced excise duty from July 1, 2017.

Financial highlights

• Sales and other income was ₹3,147.88 crore vs ₹3,290.98 crore; FY18 includes excise duty only through June 30, while GST is excluded.

• EBITDA, reported as profit before interest, depreciation and taxes, was ₹545.84 crore vs ₹508.37 crore; interest was ₹77.26 crore and depreciation ₹75.36 crore.

• PBT before exceptional items reached ₹393.22 crore vs ₹367.05 crore; after ₹27.67 crore of exceptional costs and taxes, PAT was ₹178.61 crore.

• Basic and diluted EPS rose to ₹22.33 from ₹18.78; total comprehensive income was ₹178.63 crore.

Outlook and guidance

• Prospects were described as bright, with healthy profits expected in coming years, mainly on the back of robust Indian PVC demand.

• A 17,000 MT hydrogen peroxide plant at Mettur was expected to be commissioned in Q3 FY19.