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Informist, Monday, Aug 5, 2024

--Tata Chem Apr-Jun consol revenue 37.89 bln rupees vs 42.18 bln

--Tata Chem Apr-Jun consol net profit 1.50 bln rupees vs 5.32 bln

By Avishek Rakshit

KOLKATA – Falling revenues and a sharp decline in profits from its joint ventures and associate companies led Tata Chemicals Ltd to report a 71.8% year-on-year contraction in Apr-Jun consolidated net profit to 1.50 bln rupees. The consolidated revenue declined 10.2% year-on-year to 37.89 bln rupees in Apr-Jun.

The company reported a net profit of 5.32 bln rupees a year ago and a loss of 8.50 bln rupees in Jan-Mar. The revenue was 42.18 bln rupees a year ago and 34.75 bln rupees during the quarter ended March.

The company's consolidated earnings before interest, tax, depreciation, and amortisation for the quarter was at 5.74 bln rupees, up 30% from a quarter ago, mainly on account of Apr-Jun being a seasonal quarter for Rallis – a subsidiary - and better margins in India and the US, the company said in a statement.

“Overall demand for soda ash was stable during the quarter on account of robust demand for flat glass, container glass and solar glass globally, while Europe experienced muted demand. China demand continued to be stable,” R. Mukundan, managing director and chief executive officer at Tata Chemicals said in the statement.

In its notes to its financial results, Tata Chemicals said that an exceptional gain of 200 mln rupees pertains to discontinued operations of its erstwhile fertiliser businesses, as per revised notifications issued by the concerned department for a change in the rate of subsidy for previous years.

The company’s cost of raw materials declined by 13.3% on year to 6.09 bln rupees and the purchase of stock-in-trade declined 30.9% on year to 1.05 bln rupees. Power and fuel costs declined 19.9% on year to 5.47 bln rupees. However, logistics costs shot up by 26.1% on year to 6.67 bln rupees, and depreciation costs increased by 19.2% to 2.73 bln rupees. Employee benefit expenses rose by 4.2% on year to 4.77 bln rupees, and finance costs grew by 8.1% to 1.33 bln rupees. Overall, its expenses surged 2.7% on year to 36.21 bln rupees.

“The company’s overall sales volume remained stable as compared to the previous quarter, with marginal improvement in price sequentially on account of market factors. Our focus is on customer engagement and agile response while ensuring steady contribution margins with a focus on costs,” Mukundan said.

As of Jun 30, the company's consolidated gross debt was at 63.76 bln rupees, up 8.13 bln rupees, and net debt was at 47.89 bln rupees, up 6.26 bln rupees, compared with the previous quarter, on account of higher working capital loans and capitalisation of leases.

Shares of Tata Chemicals closed 3.1% down at 1,053.25 rupees on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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