Standalone Profit from Operations up 18% to Rs 205 Cr, PAT up 7%

• Q3 FY08 Net income from operations: Rs 1,700 cr, PAT: Rs 91 cr, Diluted EPS: Rs 3.61
  
• Soda ash realisations continue to be healthy
  
• Expanded natural soda ash facility at Magadi operational
  
• New edible salt offerings Tata Salt Lite and I-Shakti Salt receive encouraging response
  
• Fresh Produce and Biofuels businesses progressing as planned
  

Tata Chemicals Limited, a leading manufacturer of chemicals, fertilisers and food additives today announced its audited financial results for the quarter and nine month period ended December 31, 2007. The Company is the third largest manufacturer of soda ash and sodium bicarbonate in the world, apart from being the leader in the Indian market. Tata Chemicals also enjoys leadership in the Indian edible salt market and is the most efficient manufacturer of urea fertiliser in the country.

Commenting on the Company's performance for Q3 / 9M FY2008, Mr. Homi Khusrokhan, Managing Director, Tata Chemicals, said, "Tata Chemicals has performed steadily. Our chemicals business continues to perform healthily on the back of buoyant demand for soda ash. The fertiliser business also continues to do well. During the quarter we have also prepaid our high cost debt and borrowed at much lower levels. While this may have impacted our consolidated profitability in the review period, it will result in significant savings going forward."

Note:
Consolidated financials indicated in this communication are audited and primarily include those of the Brunner Mond Group acquired in December 2005 and the one third stake acquisition in Indo Maroc Phosphore S.A. (IMACID)

PERFORMANCE SUMMARY
9M FY2008 (April- December 2007) v/s 9M FY2007 (April - December 2006) (all figures standalone)

• Income from operations (net of excise) at Rs. 3,145 crore compared to Rs. 3,188 crore in 9MFY2007
  
• Profit from Operations at Rs. 574 crore; up 11% from Rs 519 cr
  
• Profit After Tax (PAT) at Rs. 389 crore up 11% compared with Rs. 350 crore in 9M FY07
  
• Basic EPS (for the period): Rs. 17.86 / Diluted (EPS) (for the period): Rs. 14.59
  

Q3 FY2008 (October - December 2007) v/s Q3 FY 2007 (October - December 2006) (all figures standalone)

• Income from operations (net of excise) at Rs. 1,224 crore compared to Rs. 1,307 crore
  
• Profit from Operations at Rs. 205 crore compared to Rs.173 crore, up by 18%
  
• PAT was up 7% at Rs. 125 crore compared to Rs 117 crore
  
• Basic EPS (for the quarter): Rs. 5.62 / Diluted EPS (for the quarter): Rs. 5.03
  

CONSOLIDATED PERSPECTIVE
(in Rs. crore)

• Prepayment penalty on early retirement of high cost debt which has since been refinanced at lower interest rates
  
• Higher depreciation and interest costs as a result of capitalisation of costs incurred on expanded natural soda ash facility at Magadi
  
• Inability to pass on higher input and freight costs incurred due to long term contracts which get renegotiated every financial year
  
• Political tension in Kenya after elections in last week of December impacting operations, logistics and transportation of materials
  

SEGMENTAL PERFORMANCE
A. CHEMICALS
Soda ash
Performance perspective

• Tata Chemicals continues to command a leadership position in the domestic soda ash segment with an overall domestic market share of 30%
  

Industry perspective and outlook

• International spot soda ash prices have remained firm over USD 300/tonne and availability continues to be tight. Since no significant capacity additions are expected over the next two to three years supplies will remain tight
  
• Domestically prices were increased by around 8% during the quarter under review
  
• United States, a major player in the international soda ash market, is facing a shrinking domestic market due to the housing and automobile sector recession
  
• Chinese domestic demand on the other hand has been rising leading to decreased exports
  
• In India, substantial imports combined with normal production in Gujarat have significantly improved availability
  

Consumer Products

• Tata Chemicals continues to be the market leader in the domestic edible salt market with a 46% share in the national branded segment
  
• The Company launched a low sodium salt under the franchise Tata Salt Lite, initial feedback for which has been very positive
  
• I-shakti salt has now been launched in non-metro towns. The response has been encouraging
  
• New product offerings are being evaluated
  

B. FERTILISERS

• Prices for phosphatic fertilisers and key raw materials are going through a very volatile phase. Rock-phosphate, phosphoric acid and sulphur prices increasing sharply have led to DAP prices rising to about USD 800 per tonne - an increase of more than 300 % over the last 15 months
  

C. FOREIGN SUBSIDIARIES AND JOINT VENTURES OVERVIEW

• Firm soda ash prices balanced slightly unstable production this quarter at Brunner Mond Europe. The plants are now operating smoothly.
  
• The new plant at Magadi has been operating at 60-70% consistently. The political uncertainty in Kenya however continues to be a major cause of worry going forward.
  
• IMACID recorded its highest ever production this quarter of 104,000 tonnes. Production and sales for the 9 months under review stood at 313,000 and 326,000 tonnes respectively
  

D. NEW BUSINESSES
Fresh Produce Business

• Construction work for the first distribution centre at Malerkotla, near Ludhiana is progressing smoothly. It is expected to be commissioned by April this year
  
• The second centre will be coming up near Mumbai soon
  

Bio-fuels Business

• Implementation of the Ethanol project at Nanded has started in full swing and all orders have been placed. Plant completion is expected by November this year
  
• Test cropping of sweet sorghum in Parbhani has been successful
  
• Field research on Jatropha Curcas in Gujarat, Mahrashtra and Tamil Nadu is continuing smoothly
  

F. AWARDS
The Company received following awards during the last quarter:

• Excellent Energy Efficient Unit Award - Babrala
  
• FAI Award for the Best Technical Innovation, Babrala and Haldia
  
• CII National Award For Excellence in Water Management 2007 -"Most useful presentation"
  
• CII National Award for Excellence in Water Management 2007 - "Excellent Water Efficient unity" - Beyond Fence
  
• Ramkrishna Bajaj National Quality Award for Haldia factory
  

About Tata Chemicals Limited
Established in 1939, Tata Chemicals Limited is India's leading manufacturer of inorganic chemicals, fertilisers and food additives. Part of the US$ 28.8 billion Tata Group, the company owns and operates the largest and most integrated inorganic chemicals complex in the country at Mithapur, Gujarat. The company's state-of-the-art fertiliser complex at Babrala, Uttar Pradesh, is known for its world-class energy efficiency standards, and has won several awards in the fields of environmental conservation, community development and safety. TCL's phosphatic fertiliser complex at Haldia in West Bengal is currently the only manufacturing unit for DAP/NPK complexes in West Bengal. In 2005 the company made several international footprints mainly in Europe and Africa with the acquisition of 33% share in Indo Maroc Phosphore (IMACID) of Morocco and 100% buyout of the Brunner Mond Group which has production facilities in the UK, Netherlands and Kenya along with port facilities in South Africa. Brunner Mond also has a captive natural soda ash reserve in Lake Magadi (Kenya), the acquisition of which has placed Tata Chemicals as the 3rd largest producer of soda ash in the world.

For further information contact:
P.K.Ghose
Tata Chemicals Ltd
Tel.: +91 22 6665 8282
Fax: +91 22 2285 1132
E-mail: pkghose@tatachemicals.com

Gavin Desa
Citigate Dewe Rogerson
Tel.: +91 22 4007 5037
Fax: +91 22 2284 4561
E-mail: gavin@cdr-india.com