Tata Chemicals consolidated income from operations for Q1 FY15 at Rs3,847 crore, up by 17 percent
PAT at Rs176 crore – up by 133 percent
Mumbai: Tata Chemicals Limited (TCL), a global company with LIFE as its business — living, industry and farm essentials, reported an impressive 17 percent jump in its income from operation, at Rs3,847 crore.
Key performance and financial highlights:
Standalone
- Better volumes and realisations across most verticals
- Soda ash demand continues to be robust
- Fertiliser sales, non bulk registers impressive growth
- Consumer products business growth in line with expectation
Consolidated
- European and Kenyan business restructuring on; performance on expected lines
- Global soda ash demand continues to be positive; better realisation at TCNA
- Rallis India Q1 sales up by 14 percent to Rs465 crore / PAT at Rs37 crore
Financial highlights for the Q1 FY15:
Standalone
- Income from operations at Rs2,116 crore
- Profit from operations at Rs279 crore
- PBT at Rs231 crore
- PAT at Rs170 crore
- EPS at Rs6.65 (not annualised)
Consolidated
- Income from operations at Rs3,847 crore
- Profit from operations at Rs504 crore
- PBT at Rs315 crore
- PAT after minority interest at Rs176 crore
- EPS at Rs6.89 (not annualised)
Commenting on the company's Q1 FY15 performance, R Mukundan, managing director, Tata Chemicals, said:
"The quarter under review has been encouraging and we have started to see the positive impact of the painful yet inevitable restructuring exercise that had to be carried out to ensure viability and sustainability of our operations at UK and Magadi. Our standalone revenue jumped by 28 percent to Rs2,116 crore and net profit jumped by 69 percent to Rs170 crore due to better realisation and better volumes in India across all the businesses. Better realisation at Tata Chemicals North America took the consolidated revenue to Rs3,847 crore, a jump of 17 percent YoY basis. Net profit at consolidated level registered an impressive growth of 133 percent at Rs176 crore.
"Consumer products business continues to grow consistently at the market place and currently Tata Salt is market leader with 57 percent share in the national branded edible salt market. I-Shakti pulses and Tata Swach reported healthy volumes and continues to grow steadily.
"In the fertiliser business, subsidy outstanding at Rs1,687 crore continues to drag performance. This coupled with delay in fertiliser policy implementation continues to impact the cash flow and urea profitability above cut off. We are hopeful of a solution to the fertiliser policy issue by next quarter end. In our farm essential portfolio, we expect DAP to be under pressure continuously due to higher raw material prices and lower realisation. However, other non-bulk fertiliser products in the portfolio are expected to do well.
"India is negatively impacted due to the ongoing monsoon. But with the current strengthening of monsoon and expectation of deficit to reduce significantly, there are signs of cautious recovery and we hope this will help us cope with the pressure. We have very strong product brands like Tata Paras, Tata Kisan Sansar, Rallis brands and Dhanya which continue to enjoy the confidence of farmers and during the time of need are their first choice, and we will continue to work with Indian farmers to help them improve their productivity.
"Tata Chemicals Europe restructuring is progressing as per plan and we aim to make the business cash neutral within this year. On the other hand, Tata Chemicals Magadi restructuring is completed and is also as per plan. Q2 results may have some impact of the restructuring expenses at Magadi.
"Our focus on reshaping the portfolio to enhance the share of consumer product business and non-subsidised farm inputs business will continue in the coming years."
Businesswise performance
Living essentials
- Tata Salt - market leader in the national branded salt segment with 57 percent market share. Salt demand growing at a steady pace.
- i-Shakti pulses and Tata Swach water purifier sales on expected lines.
- Tata Swach RO phased roll-out continues and is supported by an extensive print campaign.
Industry essentials
- Global soda ash demand remained positive. Likely to grow at about 1.5 percent per annum.
- Domestic soda ash demand stable.
- Soda ash demand in Europe showing early signs of recovery.
- Magadi SAM volumes improve compared to previous year.
- Better realisation at North America.
Farm essentials
- Urea production in line with expectation.
- Neem-coated urea accounted for 29 percent of total urea production for the Q1 FY15.
- SSP production in line with expectation.
- Rallis registered 14 percent growth in sales in Q1.
- IMACID production and sales growing steadily.