Tata Chemicals today reported a consolidated net loss of Rs 15.93 crore in the third quarter of this fiscal mainly due to restructuring of its European operation besides higher expenditure on interest and taxes.
The company had clocked a net profit of Rs 224.07 crore in the same quarter previous year, it said in a BSE filing.
Total income has increased by 7 per cent to Rs 4,598.13 crore in the quarter ended December 2013, from Rs 4,311.31 crore in the year-ago period.
The Tata group firm's net profit took a beating as its finance costs rose to Rs 165.63 crore from Rs 118.41 crore, while tax expenses increased to Rs 92.61 crore from 73.25 crore in the review period.
"Current quarter results were impacted by one-time charge of Rs 82 crore due to restructuring of European operation," Tata Chemicals Managing Director R Mukundan said in a statement.
Stating that the company remains positive on demand scenario going forward, he said, "Prices internationally are stable. Subsidy outstanding continues to stress the working capital and is a challenge in the near term."
Tata Chemicals said subsidy due with the government stood at Rs 1,678 crore till December 2013.
"Over all, while we restructure our commodity businesses, on the strategic front, we continue to focus on building farm and consumer business portfolio," he added.
Normal expenditure also was on the higher side at Rs 4,195.85 crore during the October-December quarter of the 2013-14 fiscal, as against Rs 3,766.20 crore in the corresponding quarter of the previous year.
That apart, the company made a provision of Rs 82.35 crore for the third quarter towards costs associated with the restructuring of its European operations, the filing added.
A part of the over USD 100 billion Tata Group, Tata Chemicals Ltd is a global company with interests in businesses like fertilisers, chemicals, salt and other food essentials. It is also into water purifier segment.
