Tata Chemicals consolidated income from operations for Q2 FY13-14 at Rs4,344 crore, up by 4 percent, PAT at Rs134 crore
Tata Chemicals Limited (TCL), a global company with interests in businesses that focus on LIFE — living, industrial and farm essentials — reported a 4 percent jump in its income from operations at Rs4,344 crore.
Financial highlights for the Q2 FY13-14
Standalone
- Income from operations at Rs2,355 crore.
- Profit from operations at Rs274 crore.
- PBT at Rs152 crore.
- PAT at Rs107 crore.
- EPS at Rs4.19 (not annualised).
Consolidated
- Income from operations at Rs4,344 crore.
- Profit from operations at Rs574 crore.
- PBT at Rs346 crore.
- PAT after minority interest at Rs134 crore.
- EPS at Rs5.28 (not annualised).
Key performance and financial highlights
- Domestic chemicals business production on above expected lines, cost control measures and marginal price revision aided in realisation.
- Consumer products business performance on expected lines.
- Global chemicals price revision across markets expected; demand in few pockets showing positive signs.
- Urea production on expected lines. SSP and DAP demand stabilising and production improving.
- Rallis India Q2 revenues up by 24 percent.
- Subsidy receivable at Rs1,199 crore as on September 30, 2013.
- Subsidy collections likely to face pressure in the coming quarters.
- Refinanced term loans in the US and India, the US $315 mn and India $190 mn.
Commenting on the company's Q2 FY13-14 performance, R Mukundan, managing director, Tata Chemicals, said: "Overall we are enthused by the early signs of positive shift in business environment in India and overseas, especially in the US. The Indian chemical, consumer business and non-subsidy farm businesses continued sustained performance despite headwinds like forex volatility and spurt in input costs. Similar trend is visible in the US operations. During the quarter, the consumer and non-subsidy farm business grew at 5 percent and 20 percent respectively.
"The subsidy-ridden fertiliser business continued to under-perform, beset with issues of cash flow constraints. In addition, operations in the UK and Kenya continued to face headwinds due to lower realisations, and increasing energy prices kept challenging the international entities' operations.
"Consumer-facing business continued its progressive journey with i-Shakti pulses registering 57 percent growth in sales compared with the same period last year, and Tata Swach continued its growth momentum.
"We remain positive on demand scenario going forward, domestically as well as internationally. Prices internationally are showing an upward revision trend, but margins still remain under pressure. Subsidy outstanding though is down as compared to previous year, and will keep the working capital management a challenge in the near future.
"The implementation of the nutritional solutions plant in Chennai is on schedule and currently under sterility trials. Tata Chemicals Europe has initiated a restructuring process of the soda ash business and currently the proposal is under statutory consultation period. Apart from restructuring our businesses wherever required, on the strategic front, we continue to focus on building the specialty chemicals and consumer business portfolio."
Business-wise performance
Living essentials
- TCL salt franchisee — market leader with 65.5 percent share in the national branded salt segment.
- Operation Vistaar launched in Q1 FY14 for i-Shakti pulses penetration is progressing well.
- I-Shakti pulses volumes up by 57 percent compared to the same quarter last year.
- Tata Swach sales up by 5 percent compared to the same quarter last year.
Industry essentials
- Global soda ash demand as well as realisations stable.
- Domestic soda ash demand stable and prices improving.
- Soda ash production in Europe below expectation.
- Magadi production showing improvement compared to last year.
- Production at Tata Chemicals North America on expected lines.
Farm essentials
- Urea production is in line with expectation.
- Neem-coated urea accounted for 44 percent of total urea production in H1 2013-14.
- DAP / NPK production showing revival signs as demand stabilises and prices start softening.
- Rallis India registered 24 percent growth in revenue as compared to the previous quarter.
- Crossed Rs1,000 crore mark in H1 2013-14.
- IMACID production on expected lines.
- Launched FarmGro and FarmGroG — an innovative organic plant growth regulator.