Tata Chemicals declined 2.09% to Rs 1,076 after chemical maker reported consolidated net loss from continuing operations of Rs 827 crore in Q4 FY24 as against net profit from continuing operations of Rs 711 crore in Q4 FY23.
The companys revenue from operations stood at Rs 3,475 crore in Q4 FY24, down 21.15 % from Rs 4,407 crore posted in corresponding quarter last year.The firm reported profit before tax and exceptional Items of Rs 156 crore during the quarter, down 76.82% YoY.
The exceptional loss for the quarter of Rs 963 crore includes, the non-cash write down of the cash generating unit comprising property, plant and equipment of Rs 821 crore, capital work-in-progress of Rs 122 crore, Right-of-use assets of Rs 4 crore and other assets (net) of Rs 16 crore, relating to the UK Group operations.
During Q4 FY24, EBITDA dropped 54.09% to Rs 443 crore as compared with Rs 965 crore posted in Q4 FY23. EBITDA margin reduced to 13% in Q4 FY24 as compared to 22% recorded in the corresponding quarter previous year.
The company stated that Revenue and EBITDA was impacted due to lower volumes of soda ash and pricing pressure across all regions.
Rallis India recorded consolidated revenues of Rs 438 crore in the fourth quarter, recording de-growth of 16.63% YoY.
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As on 31 March 2024, gross debt reduced to Rs 5,563 crore as compared with Rs 6,296 crore recorded as of 31 March 2023.
On full year basis, the company's consolidated net profit slipped 87.92% to Rs 282 crore in FY24 from Rs 2,335 crore recorded in FY23. Revenue from operations was at Rs 15,421 crore in FY24, registering a de-growth of 8.15% YoY.
R. Mukundan, MD & CEO of Tata Chemicals, commented, said, Overall demand for soda ash in India stayed stable during the quarter on account of rising demand from the detergent and chemical sectors. During the year, salt production & sales were at the highest level. The European soda ash market remained under pressure due to muted demand and margin pressure leading to one-time non-cash charge of Rs 963 crore in UK.
The companys overall sales volume grew sequentially from the previous quarter, despite adverse price movement on account of market factors. Global demand is stable; however, market remains cautious due to ongoing geopolitical instabilities, pressure from Chinese real estate market, high interest rates and situation of oversupply. We expect sustainability trend will drive the demand for newer applications like solar glass and lithium which will fuel growth.
Further, the Board has recommended a dividend of Rs 15 per share for the financial year ended March 2024.
Meanwhile, the board of directors also approved the proposal for raising of funds through issuance of non-convertible debentures (NCDs) on private placement basis, for an amount up to Rs 2,000 crores. It also authorized an internal committee, to take all actions in respect of finalization of terms of issuance and allotment of NCDs.
Tata Chemicals, is a leading supplier of choice to Glass, Detergent, Industrial and Chemical sectors. The company has a strong position in the crop protection business through its subsidiary company, Rallis India.
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