Chemplast Sanmar Ltd, headquartered in Chennai, has reported a notable return to profitability for the June quarter, achieving a net profit of Rs 24 crore. This marks a significant turnaround from the net loss of Rs 64 crore recorded in the same quarter the previous year. The improvement is attributed to a recovery in PVC prices and reduced feedstock costs. The company has experienced a 15% increase in revenue from operations, reaching Rs 1,145 crore, up from Rs 996 crore the previous year. EBITDA for Q1FY25 stood at Rs 124 crore, reflecting an 11% margin. The rise in PVC prices was influenced by a container shortage for cargo from China, although PVC prices have begun to decrease following a decline in elevated freight rates.

Chemplast Sanmar Ltd plans to invest approximately Rs 160 crore in expanding its production capacity to bolster its custom-manufactured chemicals business. This investment, approved by the Board and earmarked for the Berigai facility, is expected to enhance the company's capabilities in this sector. Specialty chemicals revenue surged by 61% year-over-year, driven by higher volumes from a new facility in Cuddalore and increased output from the Custom Manufactured Chemicals Division. Revenue from value-added chemicals, including caustic soda, grew by 20%, while suspension PVC revenue remained stable compared to the previous year but showed an 8% improvement sequentially. Managing Director Ramkumar Shankar emphasized that the expansion reflects the company's strong product pipeline and efficient commercialization of new products, complementing recent investments in advanced R&D, pilot, and production facilities.