Chemplast Sanmar Reports Rs 31 Crore Loss In Q2 FY24 Due To Challenges
For the half year ending Sept. 30, 2024 the company incurred losses of Rs 7 crore as against a loss of Rs 38 crore
(Photo Source: Envato)
Chemplast Sanmar Ltd, part of the SHL Chemicals Group, has reported a loss for the July-September 2024 quarter at Rs 31 crore on account of 'multiple headwinds', the company said on Wednesday.
The city-based company had registered a profit after tax of Rs 26 crore during the corresponding quarter of last financial year.
For the half year ending Sept. 30, 2024 the company incurred losses of Rs 7 crore as against a loss of Rs 38 crore in the corresponding period of last financial year.
Commenting on the financial performance, Chemplast Sanmar Ltd Managing Director Ramkumar Shankar said, "The company reported a topline of Rs 2,138 crore for first half of Fiscal 2025 despite multiple headwinds. After a healthy performance in the first quarter of Fiscal 2025 PVC prices resumed their volatile trajectory due to excessive dumping and witnessed a significant downturn during the September quarter." Revenue from operations during the quarter under review marginally went up to Rs 993 crore from Rs 988 crore recorded in the year ago period.
For the six month period ending Sept. 30, 2024 the revenue from operations went up by 8% to Rs 2,138 crore from Rs 1,984 crore registered during the corresponding six months of last financial year.
"Amidst the tough environment, we were able to deliver a reasonable performance during this quarter, with a revenue of Rs 993 crore. Dumping of Paste PVC from EU and Japan has circumvented the impact of anti-dumping duty on other countries. This is being taken up with the concerned authorities," he said in a company statement.
On the projects taken up by the company, Phase II of the new multi-purpose production block is expected to be commissioned during the third quarter of the current financial year.
Project activities for phase-III of the new Multi-Purpose Production Block' and the civil and infrastructure work for the next multi-purpose production block have been initiated, the company said.
The production of Paste PVC at the new facility in Cuddalore is expected to reach 100% during the third quarter of the current fiscal, it said.
"With recent capacity expansions and announced capex plans, we are confident in the long-term growth potential of our business. Our focus remains on enhancing operational efficiencies, elevating workforce skills, and fostering strong relationships to drive sustainable growth," Shankar added.
