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India's Tata Chemicals reported its first quarterly loss in nine years on Monday, hurt by a one-time charge incurred in its UK operations along with lower prices and demand of soda ash.
It reported a consolidated net loss of Rs 850 crore ($101.9 million) in the quarter ended March 31, compared to a profit of Rs 709 crore year ago.
Tata Chemicals said it incurred a non-cash write down of assets aggregating to Rs 963 crore as an exceptional loss in respect of its UK operations.
Revenue from operations fell 21% to Rs 3,475 crore, making it the company's third consecutive quarter of decline.
Soda ash - which amounts to two-thirds of Tata Chemicals' total sales volume - is facing lower demand as falling caustic soda prices make it more appealing for the silicate market, prompting the company to cut prices of its soda ash products at least five times since April 2023.
According to analysts at Emkay Research, prices of soda ash have fallen by 21% in the March-quarter from a year ago. The chemical is used to reduce the melting point of silica to produce glass, along with the soap and detergent industries.
Tata Chemicals is the world's third-biggest soda ash producer, according to its website and analysts at HSBC.
