Chennai, January 30, 2025 – Chemfab Alkalis Limited (BSE: 541269, NSE: CHEMFAB) announced its Q3 FY25 financial results, reflecting a mixed performance, along with key corporate decisions, including the allotment of ESOP shares, incorporation of a wholly owned subsidiary, and the resignation of its Company Secretary.
Financial Performance Highlights
Consolidated Financials (₹ in Lakhs)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 |
|---|---|---|---|---|---|---|
| Revenue from Operations | 8,362.28 | 8,189.62 | 8,633.02 | 24,205.01 | 24,498.93 | 32,729.68 |
| Other Income | 254.71 | 60.12 | 150.51 | 574.17 | 663.98 | 854.46 |
| Total Income | 8,616.99 | 8,249.74 | 8,783.53 | 24,779.18 | 25,162.91 | 33,584.14 |
| Net Profit (Loss) After Tax | 188.48 | (53.44) | 710.45 | 224.61 | 2,091.61 | 2,632.31 |
| EPS (Basic) (₹) | 1.32 | (0.37) | 5.00 | 1.57 | 14.73 | 18.53 |
Revenue decline YoY – The company recorded ₹8,362.28 lakh in Q3 FY25, down 3.13% YoY from ₹8,633.02 lakh in Q3 FY24. Profitability hit – Net profit plummeted 73.48% YoY, dropping from ₹710.45 lakh in Q3 FY24 to ₹188.48 lakhin Q3 FY25, attributed to higher operating costs. EPS down significantly – Earnings per share (EPS) declined from ₹5.00 to ₹1.32, reflecting weaker earnings performance.Segment-Wise Performance
| Segment | Revenue (₹ Lakhs) | YoY Change (%) | PBT (₹ Lakhs) | YoY Change (%) |
|---|---|---|---|---|
| Chemicals & Related Products | 4,916.26 | +5.66 | (709.37) | NA |
| PVC-O Pipes | 3,446.02 | -13.44 | 938.76 | -4.14 |
PVC-O Pipes business under pressure – Revenue dropped 13.44% YoY, with segment profit declining 4.14%. Chemicals segment remains volatile – Revenue grew 5.66% YoY, but incurred a loss of ₹709.37 lakh.Key Corporate Announcements
- ESOP Allotment – The company allotted 77,100 equity shares (₹10 each) under the Chemfab Alkalis Employees Stock Options Scheme (CAESOS 2020).
- New Subsidiary Formation – Chemfab Alkalis incorporated a wholly owned subsidiary, "Chemfab Hiitech Piping Limited", to expand its market reach.
- Leadership Changes – Mr. B Vignesh Ram, Company Secretary & Compliance Officer, resigned, with his final working date to be determined by the executive team.
Management Commentary
The audit report from Deloitte Haskins & Sells LLP confirmed compliance with SEBI Listing Regulations and no material misstatements.The Board remains optimistic about long-term growth, citing strategic investments and new business expansion as key drivers for future performance improvement.
Outlook & Investor Takeaways
✔ Revenue remains stable, but margin pressures persist.✔ PVC-O Pipes business under stress, while Chemicals shows potential.
✔ Strategic expansion with a new subsidiary could drive future growth.
✔ Short-term profitability concerns, but long-term outlook remains promising.
Stock Market Reaction: Investors are likely to watch for cost control measures and execution of new business strategies in the coming quarters.
Next Steps: The company’s FY25 strategy will focus on cost efficiencies, new revenue streams, and operational optimizations.