 "Tata Chemicals Q2FY25 results: Net profit narrows 55% to Rs 194 cr")
Tata Chemicals reported a near 55 per cent year-on-year fall in its second-quarter profit on Thursday, hurt by lower soda ash prices and higher freight costs.
The chemical maker's consolidated net profit fell to Rs 194 crore ($23.1 million) for the quarter ended Sept. 30 from Rs 428 crore a year earlier.
While revenue from operations rose 0.03 per cent to Rs 3,999 crore for the quarter, total expenses rose nearly 7 per cent to Rs 3,803 crore, with freight and forwarding charges rising nearly 32 per cent.
Key Context
An economic downturn in China and stagnant demand in the EU have hit prices of soda ash, which is the primary business segment for Tata Chemicals.
Globally, soda ash prices fell nearly 23 per cent during the quarter, according to analysts at brokerage Nirmal Bang.
More From This Section
Tata Chemicals had cut soda ash prices last November.
Analysts had flagged that chemical companies could face higher expenses due to an increase in container and freight costs amid the Middle East crisis.