On a consolidated basis, the chemical maker's net profit rose 0.2% to Rs 200.72 crore on 0.7% decline in net sales to Rs 2,606.08 crore in Q3 December 2020 over Q3 December 2019.
Profit before tax (PBT) declined 11.81% to Rs 254.52 crore in Q3 December 2020 as against Rs 288.60 crore in Q3 December 2019. Current tax expense for the quarter dropped 12.6% to Rs 54.39 crore as against Rs 62.22 crore in Q3 December 2019. The Q3 result was declared post trading hours yesterday, 28 January 2021.
Tata Chemicals' income from operations on consolidated basis for basic chemistry products segment stood at Rs 1,987 crore, falling 1% Y-o-Y (year-on-year) and specialty products segment at Rs 618 crore, rising 2% Y-o-Y (year-on-year) as compared to the corresponding quarter of last year.
Commenting on the Q3 results, R. Mukundan, the managing director (MD) & chief executive officer (CEO) of Tata Chemicals, has said that: "During Q3, we have witnessed sequential improvement in demand, even as we navigate the margin pressures through agile execution of cost efficiencies. While we are focusing on business continuity, the health and safety of our employees and partners, still remain our priority. In the coming quarters, we expect a greater recovery in production and demand, given the commencement of the vaccination drive in India. Our business strategy going forward will be scaling up the value chain across our verticals with increased efforts towards R&D and innovation."
In its press statement, the company faced marginal issues in the export market out of the US. US and UK business did well throughout the pandemic. Witnessing certain demand issues in South East Asian markets, but overall momentum is positive. Rallis India reported a Q3 consolidated revenue of Rs 570 crore and PAT growth of 20% Y-o-Y (year-on-year) at Rs 46 crore.
Shares of Tata Chemicals rose 0.48% to Rs 492.15. Tata Chemicals is a global company with interests in businesses that focus on basic chemistry products and specialty chemistry products. It is currently is the world's third largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. The company has a strong position in the crop protection business through its subsidiary company Rallis India.
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