Chemplast Sanmar (CHEMPLASTS) Q4 21/22 earnings summary

Executive summary

• FY22 marked a record year for revenue, EBITDA and cash profit, supported by stronger volumes, higher realisations and capacity utilisation.

• IPO proceeds funded full redemption of high-cost debentures, leaving the standalone balance sheet debt-free and supporting planned growth investment.

• Long-term growth plans target expansion across PVC and custom manufacturing, amid demand-supply gaps and a focus on responsible, integrated operations.

Financial highlights

• Consolidated revenue from operations reached ₹5,892 crore, up 56% YoY; total income was ₹5,949 crore.

• Consolidated EBITDA, including other income, was ₹1,254 crore, up 44% YoY; CFO review identified FY22 as the best year for revenue, EBITDA and cash profit.

• Consolidated PBT before exceptional items was ₹796 crore vs ₹563 crore; PAT was ₹649 crore vs ₹410 crore.

• Consolidated EPS rose to ₹43.66 from ₹30.59; no dividend was recommended to conserve resources for growth.

Outlook and guidance

• Planned capex of ₹725 crore over three years, with projects expected to begin commissioning from FY23.

• Suspension PVC capacity is being expanded 10%, targeted for Q1 FY23; paste PVC capacity is planned to rise 62% by FY24.

• A new multipurpose custom-manufacturing facility is expected to be commissioned in H1 FY24, supporting new products and sustained revenue growth.

• Paste PVC margins are expected to remain strong; suspension PVC demand and margins are supported by global supply tightness, while caustic demand and realisations are expected to stay firm.

• Hydrogen peroxide capacity utilisation is expected to improve in FY23; chloromethanes margins are expected to stabilise and then improve as downstream demand expands.