Chemplast Sanmar net up 48% to Rs 237 cr; lines up Rs 620-cr capex till 2025 : Rashtra News
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On the suspension PVC resign front, capacity de-bottlenecking at Cuddalore at a capex of Rs 23.5 crore is underway and expected to come fully online by Q1FY23.
Chennai-based specialty chemical company Chemplast Sanmar has reported a consolidated net profit of Rs 237 crore in the third quarter of FY22 as against Rs 160 crore in the corresponding quarter last fiscal, registering a growth of 48%.
The company’s total income from operations went up by 33% and stood at Rs 1,452 crore as compared to Rs 1,088 crore. It said the revenues registered a strong growth on account of higher realisations per tonne for its key products such as specialty paste PVC resin, suspension PVC, chloromethanes and caustic soda.
Chemplast Sanmar said that it has embarked on low-cost future expansion leveraging existing land and infrastructure facilities. The company has drawn up capex plan of around Rs 620 crore, up to a period of 2025.
Addressing a virtual press meet on Saturday, Ramkumar Shankar, MD, Chemplast Sanmar, said: “The demand outlook for both paste PVC and suspension PVC is quite strong due to significant deficit and high import dependence in the domestic market. Increasing tight supply at the global level for both these products augurs well for domestic manufacturers like us. With our dominant position in the Indian market and expansion plans to cater to the growing demand, we are well-placed to benefit from uptick in PVC market.”
The company has started dispatches of two newly commercialised products of custom manufactured chemical business and a number of projects are at various stages of commercialisation. “Custom manufacturing business is expected to benefit significantly due to China plus one strategy of global innovators,” Ramkumar said.
In custom manufacturing, it is setting up a multipurpose facility in phases at an estimated capex of Rs 340 crore. Planning, detailed engineering and ordering are in progress for the first phase of expansion. The company has received environmental clearance for the proposed specialty paste PVC capacity expansion at a capex of Rs 256 crore.
On the suspension PVC resign front, capacity de-bottlenecking at Cuddalore at a capex of Rs 23.5 crore is underway and expected to come fully online by Q1FY23.
With all facilities located in Tamil Nadu and Puducherry, it enjoys proximity to key customers across industries in South and East India. Also, two coastal locations provide significant advantage in terms of raw material sourcing and transportation of finished goods, according to company’s investor presentation.
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( News Source :Except for the headline, this story has not been edited by Rashtra News staff and is published from a www.financialexpress.com feed.)
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