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Tata Chemicals drops after reverse turnaround in Q3

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Capital Market
Last Updated : Feb 04 2014 | 11:55 PM IST

Tata Chemicals lost 2.93% to Rs 256.50 at 9:52 IST on BSE after the company reported a consolidated net loss of Rs 15.93 crore in Q3 December 2013 compared to net profit of Rs 224.07 crore in Q3 December 2012.

The Q3 result was announced after market hours on Monday, 3 February 2014.

Meanwhile, the S&P BSE Sensex was down 188.59 points or 0.93% at 20,020.67.

On BSE, so far 24,000 shares were traded in the counter as against average daily volume of 58,000 shares in the past two weeks.

The stock hit a high of Rs 258.20 and a low of Rs 253 so far during the day.

Tata Chemicals' consolidated total income rose 6.65% to Rs 4598.13 crore in Q3 December 2013 over Q3 December 2012.

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Commenting on the Company's Q3 performance, Mr. R Mukundan, Managing Director, Tata Chemicals said, "The company has embarked on executing twin strategy of restructuring its commodity business on one hand and focused growth in the consumer and farm business on the other hand. During the quarter our growth platforms of Consumer business and Non-subsidy farm business revenue grew at 20% and 21% respectively as compared to corresponding quarter of previous year. Consumer business continued to grow the Tata I-shakti and Swach franchise and have grown nearly to Rs 1000 crore sales (sales Rs 972 crore) year to date. Followed by Mumbai and Delhi launches, 'Dal on Call' facility was extended to Bangalore city during the quarter. The non-bulk farm business continued its growth on back of better farm conditions and focus on productivity improvement at farm level. We launched Farmgro and Farmgro G in the previous quarter and product is well received in the market. European restructuring is on track and should yield positive results from FY 2014-15. Current quarter results were impacted by one time charge of Rs 82 crore due to restructuring of European operation. Background work on restructuring Magadi facility continues, plan is expected to be finalised in the Q4 FY 201314. We remain positive on demand scenario going forward domestically as well as internationally. Prices internationally are stable. Subsidy outstanding continues to stress the working capital and is a challenge in the near term. Overall while we restructure our commodity businesses, on the strategic front; we continue to focus on building farm and consumer business portfolio".

Tata Chemicals is the pioneer and market leader in India's branded Iodised salt segment. The company is also the world's second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. It is also a leading manufacturer of urea and phosphatic fertilisers and, through its subsidiary, Rallis, has a strong position in the crop protection business.

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First Published: Feb 04 2014 | 9:56 AM IST

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