Chemplast sanmar incurred loss of Rs 21.78 crore in the quarter ended December 2007, as against profit of Rs 6.49 crore in the corresponding previous quarter. During this period, the company's net sales grew by 7% to Rs 156.12 crore while its other income spiked by 251% to Rs 5.61 crore.

The losses would have been higher but for increase in compensation received from Multilateral fund for phase out of Carbon Tetrachloride and chlorofluorocarbons under the Montreal Protocal. The income on this front zoomed to Rs 4.17 crore in the quarter ended December 2007 up from mere Rs 0.52 crore in the corresponding previous quarter. This income is part of the other income, which explains spike in other income.

The income from montreal protocol was Rs 17.78 crore in the nine months ended December 2007, up from mere 1.6 crore in the corresponding previous quarter and Rs 1.76 crore in the year ended March 2007.

The company has converted the technology for manufacture of Caustic Soda at Mettur from Mercury cell to environmentally friendly Membrane cell process in August 2007. Further, it has also commenced operations of the Marine Teriminal Facility at Karaikal and manufacture of Ethylene Dichloride (EDC) at the said facility in October 2007.

The Board of Directors of the company have approved, subject to compliance with all related formalities, the company raising equity resources on rights basis (Share capital and premium) not exceeding Rs 200 crore. The company is in the process of filing draft offer documents with SEBI. In this regard, it has has already received an advance of Rs 90 crore from Sanmar Holdings Ltd, which has 74.75% stake in the company. The above amount was recived towards their rights entitlement of Sanmar Holdings.