Tata Chemicals, the second-largest soda ash manufacturer in the world, has reported a consolidated net profit of Rs 164.6 crore for the quarter ended December, a 22.5 percent drop, compared with Rs 212.4 crore in the year-ago period. Net sales stood at Rs 2,860 crore, 9 per cent higher than Rs 2,622.2 crore, the net sales in the corresponding quarter of the previous financial year.
However, Tata Chemical said that the figures of the corresponding period in the previous financial year are not comparable, since group company Rallis India had become an associate company of Tata Chemicals in August 2009.
On a standalone basis, the company reported a net profit of Rs 132.7 crore for the quarter, 29 per cent higher, compared with Rs 102.6 crore in the year-ago period. The turnover, at Rs 1,756 crore, was higher by 15.3 per cent, against Rs 1,522 crore in the corresponding quarter of the previous financial year.
Though domestic demand for Tata Chemical's main products, soda ash and sodium bicarbonate, grew at over 5 per cent and 9 per cent respectively, rising input (coal, coke and limestone) costs continue to exert pressure on the performance of the company, according to officials.
“We continue to see pressures of increasing input prices. The unfortunate weather events in Australia and Indonesia will put even greater pressure on energy prices. We are working towards price increases to negate this impact”, said Tata Chemicals Managing Director R Mukundan.
Shares of Tata Chemicals fell 6.13 per cent on the Bombay Stock Exchange today to close at Rs 351.15 per share. During the quarter, fertilisers were the major revenue earners for Tata Chemicals, with Rs 1,200 crore (Rs 1013 crore in the year-ago period), followed by inorganic chemicals with Rs 529 crore (Rs 487 crore in the year-ago period).
The company plans to spend over $100 million (Rs 450 crore) to expand its soda ash manufacturing capacity by four lakh tonnes, officials said.
