#ChemplastSanmar Q3 2022 Concall Highlights π§ͺ
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Operational Highlights
1. Very strong quarter as revenues stood at βΉ1452 Cr registered 33% growth YoY
2. EBITDA stood at βΉ353 Cr with EBITDA margins of 24.3%
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Operational Highlights
1. Very strong quarter as revenues stood at βΉ1452 Cr registered 33% growth YoY
2. EBITDA stood at βΉ353 Cr with EBITDA margins of 24.3%
3. Revenues registered a strong growth on account of higher realizations per tonne for our key products - Specialty Paste PVC resin, Suspension PVC, Chloromethanes and Caustic Soda.
4. The board will consider the decision on dividend as per company policy
5. Coal constitutes 40% of the power cost, looking alternatives of solar power for manufacturing
6. Revenue split: Specialty chemicals- 20%, Non specialty-15% and suspension PVC- 64%.
5. Coal constitutes 40% of the power cost, looking alternatives of solar power for manufacturing
6. Revenue split: Specialty chemicals- 20%, Non specialty-15% and suspension PVC- 64%.
Segmental performance
Specialty chemical:
1. The business stood strong in Q3FY22 with past PVC having high realization resulting in higher margins
Specialty chemical:
1. The business stood strong in Q3FY22 with past PVC having high realization resulting in higher margins
2. Commercialize 2 product in CSM business and dispatch has begun
3. After reaching all time high in October, past PVC prices have now corrected close to βΉ1700-βΉ1750/ ton
4. The increase in output prices offset the higher input cost resulting in better margins
3. After reaching all time high in October, past PVC prices have now corrected close to βΉ1700-βΉ1750/ ton
4. The increase in output prices offset the higher input cost resulting in better margins
5. The finance cost for the quarter came down significantly to βΉ37 Cr from βΉ133 Cr on YoY basis
6. Inventory at end of December for suspension PVC was 24000 tons
7. Inventory at end of December for paste PVC was 6000 tons
6. Inventory at end of December for suspension PVC was 24000 tons
7. Inventory at end of December for paste PVC was 6000 tons
8. PVC duty has went up from 7.5% to 10% in 2019 to encourage domestic production
9. Focus on increasing specialty chemical contribution in portfolio
9. Focus on increasing specialty chemical contribution in portfolio
Non specialty chemicals:
1. Caustic soda prices peaked during the quarter and still continue to be on the higher side. Currently trading at 600-650$/tonn
2. The Indian market for chloromethane reached record high due to import restrictions.
1. Caustic soda prices peaked during the quarter and still continue to be on the higher side. Currently trading at 600-650$/tonn
2. The Indian market for chloromethane reached record high due to import restrictions.
However due to upcoming additional capacities, the prices have corrected but still higher than pre pandemic levels. Once the market absorbs the incremental volumes, prices are expected to be higher again
3. Suspension PVC were at record high mainly driven by supply side constraints and thus expecting higher margins going ahead
4. Sales Volume of paste PVC were lower due to lower demand from downstream consumers as the production was slowed down due to high pollution levels in national capital resulting in stock built-up
Suspension PVC also felt the impact during October and November
Suspension PVC also felt the impact during October and November
Capex
1. Phase 1 Paste PVC expansion of 35000 TPA has received environmental clearance for 70000 TPA and is expected to come up by FY24.
2. Focus on expanding CSM business with addition of new MPP and bringing in new products
1. Phase 1 Paste PVC expansion of 35000 TPA has received environmental clearance for 70000 TPA and is expected to come up by FY24.
2. Focus on expanding CSM business with addition of new MPP and bringing in new products
3. Debottlenecking of suspension PVC capacity by 10% and expected to online by Q1FY23
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