Chemplast Sanmar earmarks Rs 650 cr capex over 3 years

Its standalone net stood at 21.27 crore during the corresponding quarter in the previous year. Consolidated revenues went up from Rs 3,800 cr in FY 21 to Rs 4,085 cr for nine months in FY 22. Total income from operations on standalone basis, for the quarter under review, surged to Rs 517.14 cr from Rs 406.83 cr in the same period last financial year.

Also, profit after tax for the nine month FY22 was Rs 417 cr, an 807 pc year on year growth with margins at 10.2 pc. This, in the words of Chairman Vijay Sankar, is to be seen as one of the few Chennai companies, which has been able to get past the Rs 400 cr mark. It is confident of taking advantage of many growth opportunities in its business, while it will make focused investments in TN and Puducherry, where all its four manufacturing facilities are located, he sought to highlight.

The management team also gave an overview of the company, wherein it was stated that the company continues to be debt-free and that on a consolidated basis, the net debt is negligible. It has also received the environment clearance for its proposed specialty paste PVC expansion.

A sum of Rs 650 cr has been earmarked for expansion activity over three years, said Ramkumar Shankar, MD, Chemplast Sanmar. Spelling out the strategies, he said plans were afoot to add paste PVC capacity to benefit from structural changes in the supply side so that it can reinforce its leadership position in India. De-bottlenecking of the facility would improve operational metrics while increasing focus on southern and eastern markets would maximise netbacks.