Tata Chemicals' first-half net
profit up by 30 per cent
October 29, 2001
Tata Chemicals Limited has reported an increase of 30 per
cent in profit after tax (PAT) for the half-year ended September
30, 2001, compared with the same period in the previous year.
PAT for the half-year ended September 30, 2001, is Rs 56.60
crore compared with Rs 43.59 crore during the same period
in the previous year.
Sales dropped by 13 per cent to Rs 679.48 crore during the
first half of the current year from Rs 784.62 crore during
the same period last year. This was due to reduced production
following the fire in the company’s chemical plant at
Mithapur in March 2001. Operating costs were reduced by 17
per cent to Rs 493.31 crore during the first half of the current
year, from Rs 592.12 crore for the same period last year.
The reduction in net interest cost by 29 per cent, to Rs
62.26 crore during the first half of current year from Rs
87.24 crore for the same period last year, has further strengthened
the company's bottom line. Overall, this has resulted in profit
before tax increasing by 41 per cent to Rs 71.19 crore in
the first half of the current year (from Rs 50.59 crore for
the same period last year).
The restoration work at the Mithapur facility is almost complete
and the soda ash and salt facilities are working at full capacity.
While recent events have cast a shadow on the economic growth
of key sectors which are major users of soda ash, the company
expects to continue its good performance in the current financial
year. The focus on cost reduction has begun to yield results,
and this is expected to be sustained.
Driven by a return to normalcy at the Mithapur facility,
the company intends to progressively increase its market share
in soda ash. The company is actively working on strategies
that will focus on the leadership of its Tata Salt brand.
The good monsoon has ensured adequate offtake of urea from
its fertiliser facility at Babrala, and it is expected that
the rabi season will be normal.
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