Chennai, Feb 13 (PTI) Chemplast Sanmar Ltd expects to commission its Paste PVC expansion project by the fourth quarter of the current financial year, the company said on Tuesday.
The city-based specialty chemicals company has recorded a consolidated net loss of Rs 89.38 crore, during the October-December 2023 quarter. The consolidated profit after tax for the corresponding quarter of last financial year stood at Rs 27.14 crore, the company part of the SHL Chemicals group, said in a statement.
"After a relatively better second quarter, Q3 FY24 performance ran into heavy weather due to further correction in PVC prices on account of dumping from China and other countries, slow down in other chemicals (Caustic Soda, Chloromethanes) business due to the over-supply situation in India, increase in key feedstock, prices and adverse impact of the lag effect in correction of VCM prices," company MD Ramkumar Shankar said.
For the nine months ending December 31, 2023, the consolidated net loss was at Rs 127.30 crore, as compared to a net profit of Rs 106.27 crore registered a year ago.
The consolidated total income during the quarter under review slipped to Rs 900.75 crore, as against Rs 1,205.10 crore registered in the same period of last year. For the nine months ending December 31, 2023, the consolidated total income declined to Rs 2,015.85 crore from Rs 2,459.78 crore registered a year ago.
The Paste PVC expansion project is expected to be commissioned in Q4 of the current financial year.
On the custom-manufactured chemicals Phase II expansion project, the company said it was expected to be completed in the first quarter of FY'25, the company said.
"The boom in the infrastructure and real estate sectors is driving the strong demand for PVC. We expect a gradual recovery in prices and margins over the next 2-3 quarters. The other chemicals business is also expected to witness improvement in prices in the next 3-4 quarters once the excess supply is absorbed by the market," Shankar added.
Regarding the expansion plans, he said the 41 KTPA (kilo tonne per annum) Paste PVC project is expected to start commercial production in Q4 of FY2024.
"This will further cement our position as the leading Paste PVC producer in India. Despite the recent uncertainty in the industry, we are confident of the long-term potential of all our businesses and are strengthening our capabilities and relationships to grow in a sustainable manner," he said.
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)