Chemplast Sanmar ‘s Q2 Update: Profit Falls by 157.32% Year-on-Year

The comprehensive analytics outlining the performance and outlook of Chemplast Sanmar Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Chemplast Sanmar Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 47.24 %. However, it did see a marginal slip of -7.78 % from the previous quarter. Expenses decreased slightly by -2.49 % quarter-on-quarter, aligning with the annual rise of 39.99 %. Operating profit, while up 274.38 % compared to last year, faced a quarter-on-quarter dip of -68.58 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 5.03 %, but a shrinkage of -5.28 % sequentially. Other income rose by 15 % compared to the last quarter, despite an annual decline of -81.28 %. Interest expenses surged remarkably by 0.31 % from the previous quarter, yet the year-over-year increase remains at a moderate 388.81 %. Depreciation costs climbed by 0.75 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 39.02 %. Profit before tax declined annually by -228.45 % but saw a reduction from the preceding quarter by -790.65 %.
Tax expenses as a percentage of profits increased slightly by 154.46 % compared to last year, with a more notable quarter-on-quarter decrease of -48.22 %. Net profit fell by -157.32 % year-on-year but witnessed a -187.23 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -157.47 % but a quarterly fall of -194.12 %. In summary, Chemplast Sanmar Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Chemplast Sanmar Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 47.24 % year-on-year growth, although there was a slight dip of -7.78 % from the previous quarter. Expenses rose by 39.99 % compared to the previous year, with a decrease of -2.49 % quarter-on-quarter. Operating Profit surged by 274.38 % annually, and saw a -68.58 % decrease from the last quarter.
Net Profit showed yearly decrease of -157.32 %, and experienced a -187.23 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -157.47 % annually, however dipped by -194.12 % compared to the last quarter. In essence, while Chemplast Sanmar Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.