After posting a loss in the first quarter, Tata Chemicals reported a net profit of Rs 54.35 crore in the second quarter ending September 30 at Rs 47.35 crore (Rs 55.82 crore in the corresponding period last year).

Net sales during the second quarter were higher at Rs 455.67 per cent against Rs 421.85 crore the previous quarter last year while expenditure was also higher at Rs 341.84 crore against
Rs 280.94 crore last year.

The company in a release said the profit after tax was lower at Rs 43.59 crore in the six months ending September 30 against Rs 62.38 crore in the previous period last year.

Sales turnover in the half year has increased by 13 per cent compared to the previous year. The increase in the sales volume of soda ash was impressive at 16 per cent (3.38 lakh tonnes against 2.91 lakh tonnes) while that urea also rose by six per cent (4.76 lakh tonnes against 4.49 lakh tonnes), the two main products of the company.

It said by an interim reassessment of urea capacity, the government reduced the retention price for urea by Rs 463 per tonne with effect from April 1, 2000, resulting in a reduction in revenue and profit of Rs 13.78 crore and Rs 22.07 crore for the second quarter.

The release said the results do not include the merger with effect from April 1, 2000, of the wholly owned subsidiary, Sabras Investment and Trading Company. The merger is awaiting statutory clearances, it said.