Tata Chemicals’ consolidated revenue from operations is Rs2,609 Cr, up by 11% in Q2 FY2021 as compared to Q1 FY2021
Standalone Revenue from Operations for the period stood at Rs 717 Cr
Mumbai, 29 October, 2020: Tata Chemicals today declared its financial results for the quarter ended 30 September, 2020. The Company reported income from operations on consolidated basis at Rs2,609 Cr, up by 11% as compared to Rs2,348 Cr of June quarter of FY2021. PAT reported on consolidated basis at Rs132 Cr, up by 78%, as compared to Rs74Cr of the June quarter of FY2021.
On a standalone basis, the income from operations rose by 14% to Rs717 Cr, as compared to Rs628 Cr of the June quarter of FY2021. PAT on standalone basis was Rs135 Cr, up by 24%, as compared to Rs109 Cr for June quarter of FY2021.
The Company’s results by reporting segment showed income from operations for the Basic Chemistry Products at Rs1,839 Cr, up by 10%, and Specialty Products at Rs766 Cr, up by 13%, as compared to June quarter of FY2021.
Commenting on the results, Mr. R. Mukundan, Managing Director & CEO, Tata Chemicals Ltd., said, “With the country gradually reopening, we are witnessing the revival of the chemical sector and customer demand. Our plant operations and capacity utilisation have gained momentum and are getting back to the pre-COVID levels. While we are scaling up our operations and ensuring business continuity, the health and safety of our employees and customers will remain our priority. In the coming quarters, we are aiming to move up the value chain with our business strategy concentrating on four verticals - performance materials, nutritional sciences, agro sciences and energy sciences, while maintaining cash flow and cash balances.”
Standalone Highlights Q2 FY2021
- Standalone Revenue operations were up as compared to Q1 FY2021
- Operating margins were subdued due to unprecedented heavy rains; there was flooding leading to higher production cost and one time expenditure of Rs 11 Cr due to damages to inventory and other assets
- Annual wage settlement pertaining to workmen has led to increase in gratuity benefit provision by Rs. 14 Cr
- Nutritional Solutions business witnessed a steady growth in the revenue and is consistently gaining traction in the market from customers
- Silica Business continues to gain traction for its food & non-food grade silica products
- Expect to accelerate customer engagement having received good responses from some of the major OEMs
- Three significant patents were granted to Tata Chemicals Innovation Centre
Consolidated Highlights Q2 FY2021
- US Domestic volumes Y-O-Y basis remained resilient, but export market faced some challenges. On the other hand, Q-O-Q basis, both domestic and export market are gaining momentum
- Europe operation remained steady and margins remained consistent
- Operational cash conversion remained robust at Rs 586 Cr for the quarter
- Kenya witnessed lower sales volume resulting a dip in the revenue
- Rallis had a steady quarter with improved business from domestic and seeds business which were partly impacted by lower volumes in International business
Performance Materials
- Soda ash witnessed a surge in demand from most sectors due to revival of end use segment
- Demand for cement in Q2 faced challenges due to heavy monsoon and flooding in many areas
- Specialty Silica plant is coming back to normalcy and operating rates have started improving along with significant progress in the automation of the plant
- Nutritional Solutions
- Demand from the edible salt sector was very high and witnessed a significant growth
- Sodium bicarbonate demand also witnessed a strong demand especially from Food, Feed and Pharma sectors
- Tata NQ witnessed strong sales of FOSSENCE from Southeast Asian markets and a new variant of low bulk density FOSSENCE® has been introduced in Q2
- Improved volume of complementary ingredients witnessed due to an increase in demand in the health & wellness sector
- Capacity utilisation and operations of Mambattu plant are coming back to the pre-COVID level
Energy Solutions
- TCL is progressing in pioneering India's first sustainable circular economy in Li-ion Batteries (LiBs) - including battery recycling.
- Agro Sciences
- Amidst COVID challenges, shipping, logistics and coordination were in focus
- Procurement of additional raw material stocks to avert production disruptions
Awards & Accolades
- TCL bagged the prestigious ICC Acharya P.C Ray Award for Development of IndigenousTechnology for the advancements in nano materials and CSIR Diamond Jubilee Technology Award 2019 for technological innovations in the production of ‘Fructo-oligosaccharides’ (FOSSENCE)
- Tata Chemicals ranked 3rd amongst the Indian corporates for its Sustainability and CSR practices
- TCSRD was felicitated by the Gujarat State Government on 15th August 2020 for its COVID-19 relief work
About Tata Chemicals Ltd.
A part of the over US$ 110 billion Tata Group, Tata Chemicals Limited, is a global company with interests in businesses that focus on Basic Chemistry Products and Specialty Chemistry Products. The story of the company is about harnessing the fruits of science for goals that go beyond business. The company’s Basic Chemistry product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents and other industrial products. Tata Chemicals currently is the world’s third largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. The company has a strong position in the crop protection business through its subsidiary company Rallis India Ltd. Tata Chemicals has established world class R&D capabilities with a dedicated band of research and scientific personnel working at its facilities in Pune and Bangalore in the emerging areas of material sciences, nutritional sciences, nanotechnology, biotechnology and agriculture sciences.