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Earnings Call Transcript

Chemplast Sanmar Earnings Call Transcript: Key Takeaways

Chemplast Sanmar reported Q1 FY27 revenue of INR 1,125 crores, but faced a net loss of INR 176 crores due to high-cost VCM inventory and pricing volatility in PVC.

Guidance and delivery
Management target Revenue FY27
Highlights
MarginsEBITDA loss of INR 115 Cr due to elevated input costs.
Order bookHealthy order book for CMCD division; 50 molecule pipeline.
Demand visibilityRecovery seen in June; confident in coming quarters.
Management confidenceConfident in recovery from Q3 as high-cost inventory clears.

Growth

Revenue grew year-on-year to INR 1,125 Cr from INR 1,100 Cr; EBITDA loss was INR 115 Cr.

Outlook

Targeting INR 1,000 Cr CMCD revenue; 7,000 MT Paste PVC debottlenecking by Oct '26; full R32 capacity by Q4.

Risks

High-cost feedstock inventory, lack of antidumping duties, and global supply pressure from China and Japan.

Last quarter's promises, checked

Delivered

  • Commercial production of R32 → Commenced May '26 (= BEAT)
  • Cuddalore Paste PVC capacity utilization → Operated at 100% (= BEAT)
  • MPB 3 Phase III expansion → Progressed as planned (= BEAT)

Partly delivered

  • R32 Capacity → 2kt swing plant started; 14kt target by year-end (= PARTIAL)

Missed

  • Implementation of ADD on Paste PVC → Delayed to H1 FY27 (= MISS)
  • CMCD revenue target of INR 1,000 Cr → Delayed by 12 months (= MISS)
  • Suspension PVC spreads → Remained at variable cost/breakeven levels (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: CHEMPLASTS. Summary written with AI assistance from the document.

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Chemplast Sanmar Ltd: key numbers

Share price
₹197.47
Market cap
₹3,122 Cr
Revenue (annual)
₹4,224 Cr
Net profit (annual)
₹-279.9 Cr
P/E (TTM)
-8.0×Sector 37.5×
Promoter holding
54.99%+0.00% QoQ
FII holding
12.02%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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