Tata Chemicals consolidated income from operations for Q2 FY16 at Rs4,997 crore - up by 4 percent Y-o-Y
Consumer business portfolio achieves a revenue growth of 35 percent Y-o-Y
Mumbai: Tata Chemicals (TCL), a global company with LIFE (Living, Industry and Farm Essentials) at its core, reported income from operations at Rs4,997 crore up by 4 percent Y-o-Y.
Key performance and financial highlights:
Standalone
- Robust performance in soda ash and salt business.
- Consumer products portfolio revenue up by 35 percent over Q2 FY15.
- Spices launched successfully in NCR and states of North India.
- Uneven and deficit monsoon impact performance of the agri business.
- Subsidy receivable at Rs1,005 crore as on September 30, 2015 (Rs1,972 crore as on March 2015).
Consolidated
- Magadi continues positive performance with improved profitability.
- Steam turbine in full operation in UK, continued focus on further operational improvements.
- US volumes impacted due to production outages; being addressed.
- Adverse climatic conditions impact Rallis India performance.
Commenting on the company's Q2 FY16 performance, R Mukundan, managing director, TCL, said:
"The quarter under review saw the chemicals and consumer business portfolio registering satisfactory numbers. The marked improvement in the chemicals business has been a reflection of the improved performance at Magadi. While the steam turbine project has been successfully implemented in UK, we continue to remain vigilant and focused on further opportunities to improve business. An uneven and deficit monsoon has impacted fertiliser and other agri-input businesses.
"Stand-alone revenue was up by 8 percent to Rs3,056 crore, due to better performance in the consumer and chemicals business in India. Improved volumes of pulses, which grew by 70 percent over last year, salt and non-bulk agri business also contributed to the higher turnover. Better contribution, reflecting reduced energy costs, and overall improved performance of the chemical business, as well as positive performance by all the other businesses took the consolidated revenue to Rs4,997 crore, up 4 percent over the last quarter of FY14-15.
"The consumer products business continues to grow and maintained its leadership position with a market share of 67.3 percent in the national branded edible salt market. In line with our focus on expanding the consumer products business, we launched a range of spices in the last quarter, bringing everyday food products including pulses, under the newly introduced umbrella brand, Tata Sampann.
"The nutraceuticals business also increased its reach with our product FOS now available across 70 cities in India.
"In the fertiliser business, the subsidy outstanding is Rs1,005 crore as on 30th September 2015, and still remains a challenge.
"Going forward we expect the Indian market to continue the overall growth momentum, and also remain positive about the growth across our businesses and transformation to a more consumer facing portfolio."
Businesswise performance
Living essentials
- Consumer products portfolio revenue up by 35 percent over Q2 FY15.
- TCL market leader in the national branded salt segment with 67.3 percent market share.
- Introduction of new brand Tata Sampann for nourishing everyday foods portfolio. Tata Sampann Spices launched successfully in NCR and northern states in September.
- Tata Sampann pulses achieved over 70 percent volume growth and growth across regions.
Industry essentials
- Global demand and supply situation for soda ash in equilibrium, freight rates soften.
- Magadi operations continue improved performance, with reduced costs and better margins.
- Steam turbine in full operation in UK, continued focus on further operational improvements
Farm essentials
- Demand of Urea and complex fertilisers showed growth.
- Urea production in line with expectation.
- Tata Paras 20:20 continues to be received well in the marketplace.