Chemplast to Invest ₹340 Crore in R32 Refrigerant Gas Project; FY25 Profitability Affected by Imports
Chemplast Sanmar, a prominent player in the specialty chemicals industry, has announced plans to invest ₹340 crore in a new greenfield project aimed at producing R32 refrigerant gas. R32 is gaining popularity due to its lower global warming potential compared to conventional refrigerants, making it an increasingly favored option in HVAC (Heating, Ventilation, and Air Conditioning) and cooling systems globally. The company sees this project as a key step in expanding its footprint in the specialty chemicals market.
Highlights:
Chemplast to invest ₹340 crore in R32 refrigerant gas production
R32’s adoption driven by its environmental advantages
Investment part of broader strategy to grow in specialty chemicals
Chemplast’s Q4 FY25 Sees Increased Loss, Despite Revenue Growth
Chemplast Sanmar reported a net loss of ₹54 crore for Q4 FY25, which represents an increase from the ₹31 crore loss in the same quarter of the previous fiscal year. Despite the increased loss, the company achieved a notable improvement in its EBITDA, which rose to ₹37 crore from ₹21 crore in Q4 FY24. Revenue from operations also showed a solid performance, growing 10% to ₹1,151 crore from ₹1,051 crore year-on-year, driven by increased demand and production capacity.
Highlights:
Q4 FY25 net loss rises to ₹54 crore, up from ₹31 crore in Q4 FY24
EBITDA increases to ₹37 crore from ₹21 crore
Revenue from operations grew by 10% year-on-year to ₹1,151 crore
Full-Year FY25 Financials: Revenue Growth Despite Net Loss
For FY25, Chemplast Sanmar reported a decline in its net loss to ₹110 crore, compared to ₹158 crore in FY24. This reduction in loss was accompanied by a growth in revenue, which increased by 11% to ₹4,346 crore, up from ₹3,923 crore in FY24. The growth in revenue was driven by the ramp-up of new specialty chemicals production capacities at the company’s facilities in Cuddalore and Berigai in Tamil Nadu.
Highlights:
Full-year net loss narrows to ₹110 crore, down from ₹158 crore
Revenue grows 11% to ₹4,346 crore for FY25
Revenue growth fueled by new specialty chemicals capacities at Cuddalore and Berigai
Chemplast’s EBITDA Improvement Driven by Stronger Pricing and CMC Performance
Chemplast Sanmar saw a significant improvement in its EBITDA, which grew from ₹26 crore to ₹219 crore for FY25. The increase was primarily driven by better pricing and margins in both Paste PVC and Suspension PVC, especially during the first quarter of FY25. Additionally, the company’s Custom Manufactured Chemicals (CMC) segment showed robust growth, contributing significantly to the overall performance. The higher output from the new Cuddalore Paste PVC facility further supported this positive EBITDA trend.
Highlights:
EBITDA rises sharply to ₹219 crore from ₹26 crore in FY24
Strong pricing and margins in Paste PVC and Suspension PVC
Robust performance from CMC segment and new Cuddalore facility
Impact of PVC Imports: Dumping Continues to Pressure Profitability
Despite the positive performance in some segments, Chemplast Sanmar’s profitability continues to be hampered by the dumping of both Suspension and Paste PVC into India, especially from the European Union. The company has raised concerns about the adverse effect of these imports on domestic pricing. While anti-dumping duties (ADD) have been imposed on Paste PVC imports from certain countries, the continued dumping from the EU is still putting pressure on pricing. The company is currently awaiting the outcome of investigations into the matter, which are expected in the coming months. The case for ADD on Suspension PVC remains unresolved, with ongoing legal proceedings.
Highlights:
Dumping of PVC imports, especially from the EU, continues to pressure prices
ADD imposed on Paste PVC imports, but EU dumping remains a concern
Ongoing legal proceedings for ADD on Suspension PVC imports
Chemplast remains hopeful of a favorable resolution in both proceedings
