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Informist, Wednesday, May 7, 2025

 

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--Tata Chem Jan-Mar consol loss INR 560 mln vs INR bln 8.50 bln loss yr ago 
--Tata Chem Jan-Mar consol revenue INR 35.09 bln vs INR 34.75 bln year ago 
--Tata Chem board OKs raising up to INR 2 bln via NCDs 
--Tata Chem to pay INR 11 per share dividend 
--Tata Chem FY25 consol net profit INR 2.35 bln vs INR 2.68 bln year ago 
--Tata Chem FY25 consol revenue INR 148.87 bln vs INR 154.21 bln year ago 
--Tata Chem Jan-Mar one-time cost INR 550 mln 
--Tata Chem Jan-Mar consol EBITDA INR 3.27 bln vs INR 4.43 bln year ago 
--Tata Chem gross debt INR 70.72 bln as on Mar 31 
--Tata Chem: Pricing pressure continued in all geographies 
--Tata Chem FY25 consol EBITDA INR 19.53 bln vs INR 28.47 bln year ago 
--Tata Chem Jan-Mar consol EBITDA margin 9% vs 13% year ago 
--Tata Chem FY25 consol EBITDA margin 13% vs 18% year ago

 

By Pallavi Singhal

 

NEW DELHI – Tata Chemicals Ltd.'s net loss in Jan-Mar narrowed sharply on year to INR 560 million from INR 8.5 billion in the year-ago quarter, primarily owing to a write-down of assets aggregating INR 9.6 billion in the UK.
 

Loss in the latest quarter was driven by several factors, including a one-time loss of INR 550-million from a step-down subsidiary's decision to cease soda-ash production at its UK-based Lostock plant in Northwich. Moreover, lower prices of soda ash across geographies, along with demand-supply imbalances and uncertainties in soda ash trade driven by tariff changes, weighed down the company's earnings for the March quarter, Tata Chemicals said in a release.

 

The company's revenue for the March quarter was INR 35.09 billion, up 1% on year but down more than 2% sequentially, as pricing pressures continued in all geographies, the company said. Other income for the quarter fell 63% on year to INR 420 million. The company's performance fell short of the analysts' estimates who had projected a profit ranging between INR 819 million and INR 1.75 billion, estimated by Kotak Institutional Equities and Nirmal Bang Equities Pvt. Ltd., respectively. 

 

The company's revenues rose slightly as it saw a 3% on-year increase in sales volume of soda ash, sodium bicarbonate, and salt combined during the quarter under review. Tata Chemicals' sales volume for the quarter was 1.4 million tonnes, compared with 1.3 million tonnes a year ago. The company also approved a fundraising of INR 2 billion through non-convertible debentures and declared a dividend of INR 11 per share.

 

Total expenses of INR 36 billion for the March quarter were up 5% on year. Its freight and handling expenses rose 11% on year to INR 7.4 billion. For 2004-25 (Apr-Mar), the company's net profit was INR 2.4 billion, down from INR 2.7 billion a year ago. Its revenues were INR 148.9 billion, down from INR 154.2 billion a year ago.

 

Tata Chemicals' earnings before interest, taxes, depreciation, and amortisation for the quarter was INR 3.27 billion, down from INR 4.43 billion from the year-ago quarter, mainly on account of lower prices. The chemicals company's consolidated EBITDA margin for the quarter also contracted four percentage points from the year-ago quarter to 9% during the latest quarter. 

 

Managing Director and CEO of Tata Chemicals, R. Mukundan, blamed market conditions for the company's poor performance. "Market conditions remain challenging even as India continues to grow while China, the US and Western Europe are witnessing slight declines due to reduced demand for flat and container glass," he said in the press release. Some regions in Asia, excluding China and India, saw robust demand while demand from Africa fell slightly, he said. He expects tariff uncertainties to continue to weigh on the market.

 

Revenues from Indian operations for the March quarter rose nearly 5% to INR 12.2 billion and those from US operations rose over 3% to INR 13.2 billion. Revenues from its Kenya operations were up 16%. On other hand, revenues from the UK and Rallis Ltd. fell 22% and 18% on year, respectively. Its gross debt rose INR 15.09 billion from the year-ago period to INR 78.72 billion as of Mar. 31, on account of higher working capital requirements.

 

The company announced its earnings after market hours Wednesday. Its shares closed 1.18% higher at INR 826.20 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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