Chemplast Sanmar Limited, a speciality chemicals company with a significant presence in the custom Manufacturing business, the market leader in speciality paste PVC in India and the 2nd largest producer of suspension PVC in India (through its wholly-owned subsidiary), has reported Q3 FY25 revenue of 1,058 crore, an increase of 19% vis-a-vis Q3 FY24.  

Business performance improved due to better prices and margins on Paste PVC, improved performance of Custom Manufactured Chemicals Division (CMCD) and also due to increased volumes of Paste PVC from the new plant.

The PVC performance is better when compared to last year but the PVC products (both Suspension and Paste) witnessed price and margin pressures due to excessive dumping in Q3 FY25 amidst slower global demand.

The company is hopeful of trade measures fructifying in the near future. Indian suspension PVC demand in the 9-month period registered a healthy 11% growth on a year-on-year basis, while paste PVC demand in the country grew by 13% over the same period, demonstrating the strength in the Indian economy Production of paste PVC at new Cuddalore facility is being ramped-up with full capacity expected to be reached by end of Q4 FY25 CMCD.

CMCD registered a stable performance in Q3 FY25. Initiated project activities for phase-3 of MPB3 and civil and infrastructure work for MPB4. Prices of Caustic Soda moved up on the back of steady demand while Chloromethanes remained under pressure led by intense competition. The demand for Hydrogen Peroxide and R22 remained stable.

Commenting on the results, Ramkumar Shankar, Managing Director, said, “The total revenue for the first nine months stood at Rs. 3,195 crores, a growth of 11% on YoY basis.This was largely on account of better prices and margins on the PVC businesses and improved performance of CMC Division."

"The last couple of years have been challenging for the company, due to dumping of product, especially of Suspension and Paste PVC, resulting in margin pressures. However, it is pertinent to note that the trend has been improving, with the current year showing a marked improvement over FY24. Dumping of Suspension PVC from China and Paste PVC from the European Union have resulted in pricing headwinds and the consequent impact on margins. However, domestic demand has been quite good with the apparent consumption of Suspension PVC registering a 11% growth on a year-on-year basis in the 9-month period April to December 2024,while Paste PVC registered a 13% growth over the same period," commented Shankar. 

"On CMCD, the MPB 3 phase 1 commissioned last year has been ramping up well and we expect healthy business from the host of molecules which have been commercialized. Phase 2 of MPB 3 was commissioned on December ‘24. The pipeline of products under development is strong and is continuously growing within crease in new enquiries from customers.

“The Value-added chemicals business witnessed mixed demand trends across end-user industries. Volumes for our value-added chemicals grew by 5% in the quarter and 24% over the first nine months of FY25, driven by steady demand across diverse sectors. Suspension PVC industry has seen healthy demand growth thanks to increased traction from housing, construction, irrigation and drinking water segments. We remain positive on the demand side in the coming period. The extension of the Jal Jeevan Mission to 2028, announced in the recent Union Budget, augurs well for Suspension PVC demand. Going ahead, we remain resilient and focused on expanding our capacities and capabilities, especially in the Specialty segment, to capitalise on improving market conditions,” added Shankar.