Tata Chemicals reports Rs 238 cr profit in Q3 FY2014-15

Restructuring exercise at Kenya and overall good performance by all businesses has yielded positive results for Tata Chemicals, which reported a net profit of Rs 238.12 crore for the quarter ended December 31, 2014 compared to net loss of Rs 15.93 crore during Oct-Dec 2013. The company’s total income was up by 5 percent to Rs 4,820 crore in the third quarter of 2014-15 compared with 4,599.32 crore during the same period last year.
 
R Mukundan, managing director, Tata Chemicals, commented, “The quarter under review has been encouraging, apart from good performance by all businesses; the restructuring exercise at Kenya has been completed and has resulted in positive improvements. European operations restructuring is in progress.”
 
Stand-alone revenue were up by 13 percent to Rs 3019 crore and net profit up by 39 percent to Rs 205 crore due to better performance in the consumer and chemicals business in India. “Better realisation at Tata Chemicals North America and positive performance by all the other businesses took the consolidated revenue to Rs 4,820 crore, a jump of 5%. Revenue growth of 5 percent is after closure of soda ash capacities in Kenya and UK in the previous year,” said Mukundan.
 
“Consumer products business continues to grow consistently at the market place and maintains its leadership position with a market share of 69 % in the national branded edible salt market. I-Shakti pulses and Tata Swach reported healthy volumes and continues to grow steadily with focus on increasing the penetration levels across India,” he added. Continued focus on expansion of branded products portfolio and market penetration has helped Tata Chemicals’ Living Essential business achieve turnover of Rs 1,121 crore in first nine months of FY 2014-15.
 
Mukundan said, “The fertiliser business continues to face headwinds due to lack of clarity in policy which resulted in substantial production loss. In addition to this, subsidy outstanding at Rs 1,693 crore is a challenge and continues to hamper the balance sheet.”