Tata Chemicals today said it had deferred plans to raise $375 million for various projects, both overseas as well as domestic, following the global economic concerns.
"Due to the ongoing global economic concerns, we have deferred our plans of raising $375 million for our various projects. The money was planned to be raised in a mix of debt and bonds," Tata Chemicals Managing Director R Mukundan said, after declaring the first quarter results.
The firm, a leading player in consumer products, crop nutrition and agribusiness segments, was expected to raise the amount over a period of time for its projects in India, Gabon and the US.
Tata Chemicals reported a consolidated net profit of Rs 199.87 crore in the first quarter compared to Rs 215.98 crore in the the same period last year.
The company said PAT had an impact of Rs 23 crore in accordance with the subsidy income of Rs 30 crore on the opening stock of raw materials for phosphatic and potassic fertilisers in accordance with a memorandum issued by Department of Fertilisers, Government of India.
The total consolidated net sales in the April-June period rose 18% to Rs 2,923.67 crore against Rs 2,479.93 crore in the same quarter of the previous fiscal.
"The chemicals side of business will continue to do well and we expect results to be better than last year. The fertiliser vertical, however, will be under pressure. But the steps taken by government will have positive impact and the fertiliser segment is likely to perform better in the second quarter compared to the first quarter," he said.
Tata Chemicals is market leader in branded iodised salt segment in the country. It is the world's second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America.
Asked if the current economic downturn will impact Tata Chemicals' global business, Mukundan said, "The demand in all our verticals will grow in Asia, Latin America and Europe. As we are not dependent on one market we are not likely to see any negative impact of the international economic turmoil."
Talking about fertilisers' prices, he said the supply for soda ash, potash and di-ammonium phosphate is likely to remain tight leading to a hike in prices.
Shares of the company settled at Rs 352, marginally up from the previous close on the Bombay Stock Exchange.
