Tata Chemicals today reported a 31.82 per cent increase in consolidated net profit at Rs 343.02 crore in the fourth quarter of 2016-17 fiscal even as income remained down.
The company's net profit stood at Rs 260.21 crore in the year-ago period, it said in a BSE filing.
Total income declined to Rs 3,079.47 crore in the January-March quarter of the 2016-17, fiscal from Rs 3,618.14 crore in the year-ago period.
"The revenue has come down as a business decision we have cut down on traded fertiliser, which are basically imported. It has resulted in saving interest costs. The profits were good during the fourth quarter of FY17, as other business did well," Tata Chemicals Managing Director and CEO R Mukundan told reporters here.
However, expenses remained lower at Rs 2,733.96 crore compared to Rs 3,310.56 crore in the said period.
For the FY 2016-17, net profit rose to Rs 1,234.10 crore from Rs 1,001.11 crore in the previous fiscal.
The board has recommended a dividend of Rs 11 per ordinary share of Rs 10 each for the 2016-17 fiscal, subject to the approval of the shareholders at the ensuing annual general meeting of the company. The dividend, if approved, will be paid on and from August 11, 2017.
The company net debt has also declined by 29 per cent to Rs 5,573 crore during FY17, compared to Rs 7,380 crore in the previous financial year.
Commenting on the performance, Mukundan said, "The quarter under review has been encouraging with improved performance led by the Indian operations".
The year registered good performance across businesses and geographies, in spite of challenge faced on several fronts.
"The Wyoming operations had production shortfall in Q4 as compared to last year, while for the full year the production was up," he said.
In the farm business, Rallis India and Metahelix continue with higher sales and margins. The consumer products business continues to grow and Tata Salt maintains its market leader position.
Tata Sampann spices and low oil absorb besan were rolled out during the year.
"We are planning to enter into the southern region with our spices segment this year. We will also continue to grow in our value added pulses segment in a measured way," he said.
The company will also continue its focus on delivering operational excellence across our business and driving growth in consumer products and speciality chemicals, while maintaining leadership in Soda Ash, he added.
"We expect our farm business Rallis to perform better this in line with the good monsoon forecast," he said.
Talking about the impact of Good and Services Tax (GST), Mukundan said, "It's not as alarming as we hear from reports. GST will make the entire industry transparent and organised sector more organised. I have not come across any commodity for which it will be negative. Many prices are likely to come down, across the board."
Tata Chemicals, a Tata group company, is engaged in manufacturing of chemicals, salt and fertilisers. It also sells pulses and spices under Tata Sampann brand. The firm is also into water purifier business.
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