Chemplast Sanmar (CHEMPLASTS) Q4 20/21 earnings summary

Executive summary

• FY2020-21 standalone EBITDA grew 23.3% YoY to Rs 396.96 crore, with margin rising to 30.7%; higher finance costs drove lower PBT and PAT.

• Consolidated revenue was Rs 37,987.26 million and PAT Rs 4,100.85 million; results included investment-redemption gains and a substantial share of associate and JV losses.

• Operations recovered after April–May COVID shutdowns; management expected demand to improve from Q2 FY22 and targeted profitable operations at optimal capacity.

Financial highlights

• Standalone sales and other income rose 2.2% to Rs 1,294.55 crore; PBT before exceptional items was Rs 55.57 crore vs Rs 138.99 crore, and PAT was Rs 43.63 crore vs Rs 98.74 crore.

• Standalone finance costs increased to Rs 253.67 crore from Rs 95.42 crore, absorbing the full-year impact of NCD interest; lower operating expenses partly offset the increase.

• Consolidated revenue was Rs 37,987.26 million vs Rs 31,227.61 million; PBT was Rs 5,469.76 million vs a loss of Rs 980.93 million, and PAT was Rs 4,100.85 million vs a loss of Rs 471.84 million.

• Consolidated PBT included Rs 4,828.29 million profit on investment redemptions/sales and Rs 3,335.65 million share of losses from JVs and associates; FY20 included an exceptional inventory write-down of Rs 1,068.95 million.

• Consolidated EPS was Rs 30.59 vs a restated loss of Rs 2.09; standalone EPS was Rs 3.25 vs Rs 4.37, with prior-year EPS restated for the share split.

Outlook and guidance

• Management expected product demand to improve from Q2 FY22, reach estimated FY22 volumes and support optimal plant utilization and profitable operations.

• Consolidated management expected demand to continue at similar levels in the foreseeable future; liquidity, asset recoverability and COVID impacts remained subject to uncertainty.