Tata Chemicals' profits up in second quarter
After posting a first-quarter loss for the first time in its history, Tata Chemicals Limited has shown a significant improvement in the second quarter. The quarter’s profit before tax — Rs 54.35 crore — is, however, still below the figure for last year's corresponding quarter.
Sales turnover in the half-year ending September 30, 2000, has increased by 13 per cent in relation to that of the previous year. The increase in the sales volume of soda ash is impressive at 16 per cent (3.38 lakh tonnes against 2.91 lakh tonnes), while the sale of urea has increased by 6 per cent (4.76 lakh tonnes against 4.49 lakh tonnes). Soda ash and urea are the two main products of the company and any improvement in performance is directly linked to these two businesses.
At the end of the half-year, the profit before tax stands at Rs 50.59 crore, lower than for the corresponding period last year, when the profit before tax was Rs 79.38 crore. This takes into account the reduction in the retention price of urea by Rs 463 per tonne, effective from April 1, 2000, due to an interim reassessment of capacity carried out by the government, amounting to a loss of Rs 22 crore during the first half.
Furthermore, the company's profits in its investment subsidiary, Sabras Investments, amount to Rs 214 crore and these have not been included in the half-yearly results (since statutory clearances and approvals are not yet complete).