Chemplast Sanmar Faces Financial Headwinds Amid PVC Market Challenges

Chemplast Sanmar reported a Rs 31 crore loss for July-September 2024 due to market challenges. The company aims to counter PVC dumping effects and expects growth from production expansions. Revenue slightly increased despite downturns, and new projects are underway to boost long-term business growth.

Chemplast Sanmar Ltd, a key player in the SHL Chemicals Group, has disclosed a Rs 31 crore loss for the July-September quarter of 2024, attributing this downturn to various market challenges, as announced on Wednesday.

The city-based company had recorded a Rs 26 crore profit during the same period of the previous financial year, underscoring the impact of these adverse conditions. Despite facing these challenges, the company tallied Rs 2,138 crore in topline revenue for the first half of FY'25. Nevertheless, the company faced difficulties, as PVC prices saw volatility due to increased international dumping, notably affecting the quarter in question.

Amid these tough conditions and ongoing projects, including phase two of its multi-purpose production block being commissioned soon, Chemplast Sanmar remains optimistic. The company plans to focus on boosting operational efficiency and fostering relationships to ensure steady growth. Their confidence is fueled by recent capacity expansions and new capital expenditures.

(With inputs from agencies.)