Tata Chemicals Q1 FY 2009-10 Net Profit Up 60.80 per cent Y-o-Y at Rs 94.40 Crore Vs Rs. 58.70 Crores
Revenues Up 19.40 per cent Y-o-Y at Rs 1441 Crores Vs Rs. 1207 Crores
Business Highlights
- Improved demand drives operations.
- New Sodium bicarbonate plant in UK commissioned
- Expanded urea operations continue smoothly at over 3,500 tonnes per day
- Focused efficiency and cash conservation programme ADAPT showing results across all locations
- Total debt of Rs 440 crore repaid during the quarter
- Tata Chemicals continues to lead the Salt market with a market share of 57.9 per cent amongst national brands
- During the quarter, Tata Salt regained its position as the "No.1 Most trusted Food brand" in India
Q1 FY10 Standalone Financial Highlights
- Revenues at Rs 1,441 crore up 19.4 per cent
- PAT is up 60.8 per cent to Rs 94 crore
- EPS at Rs 4.01 from Rs 2.51
Q1 FY10 Consolidated Financial Highlights
- Revenues at Rs 2,285 crore up 4.2 per cent
- PAT * after Minority Interest at Rs 106 crore
* The consolidated Q1 net profit is not comparable with that of the same period in the previous year, due the the one time provisioning of Rs. 63 Crores (net of tax) made towards restructuring of overseas operations in line with local GAAP
Tata Chemicals Limited, a leading manufacturer of chemicals, fertilisers and food additives today announced it¡¦s consolidated & standalone financial results for the quarter ended June 30, 2009. The Company is the second largest manufacturer of soda ash and the third largest producer of sodium bicarbonate in the world, apart from being the leader in the Indian market. Tata Chemicals also enjoys leadership in the Indian edible salt market and is the most efficient
manufacturer of urea fertiliser in the country.
An improving domestic environment combined with lower input prices and a strict control on operating costs enabled healthy performance for the quarter under review. A reflection of the stabilisation and improvement in the environment is the contribution from key products that has improved compared to the sequentially preceding quarter
Commenting on the Company¡¦s performance for Q1 FY2010, Mr. R Mukundan, Managing Director said:
Our performance is a reflection of a healthy improvement in our domestic operations. Soda ash domestic demand growth at over 8 per cent has been driven largely by the detergents segment. As we had indicated earlier, prices of our key raw materials have declined far more considerably as compared to soda ash as a result of which we have seen healthy contribution from our Mithapur facility. Urea production continues to be high at around 3,500 tons per day. Our salt business too has performed well with our market share at 57.9 per cent. A key enabler of our results has been our cash conservation and efficiency programme ADAPT which has resulted in significant savings in fixed and variable costs across all our locations. This has enabled us to respond in an appropriate manner to a continuously challenging environment. I believe that the strength of our business model combined with the discipline execution of such programmes will enable us come out stronger and more prepared to leverage opportunities as the environment improves
YEAR – ON – YEAR PERFORMANCE COMPARISION
- Q1 FY2010 (April – June 2009) v/s Q1 FY2009 (April – June 2008)
- Standalone income from operations (net of excise) at Rs 1,441 crore compared to Rs 1,207 crore in Q1 FY 2009, an increase of 19.4 per cent
- Standalone PAT increased by 60.8 per cent to Rs 94.4 crore from Rs 58.7 crore
- Standalone EPS at Rs 4.01 from Rs 2.51
- Consolidated Income from operations (net of excise) at Rs 2,285 crore compared to Rs 2,192 crore in Q1 FY 2009, an increase of 4.2 per cent
- Consolidated Profit after Tax & Minority Interest (PAT) (after adding back one time provision of Rs 63 crore (net of tax) made towards proposed restructuring of overseas operations in line with local GAAP) at Rs 106 crore
SEGMENTAL PERFORMANCE
CHEMICALS
- Indian demand has grown 8 per cent YOY driven by the detergents, flat glass and container glass segments
- While the imposition of a 20 per cent safeguard duty has tempered Chinese imports to some extent, this still remains a challenge. Chinese production volumes have increased considerably over the last 4 -6 months
- Sodium bicarbonate demand too continues to be healthy though increasing imports are pressuring margins
- BMGL's performance continues to be encouraging despite the slowdown in the overall environment
- A new Sodium bicarbonate plant with a capacity of 50,000 MT has commenced operations in UK
- Magadi improves both production and sales in the quarter under review
- Domestic demand in the US appears to be stabilising on the back of a gradual increase in industrial activity
- Tata Chemicals continues to lead the Salt market with a market share of 57.9 per cent amongst national brands
- During the quarter, Tata Salt regained its position as the "No.1 Most trusted Food brand" in India
FERTILISERS BUSINESS
- Improved availability of phosphoric acid resulted in smoother operations at Haldia. Rock phosphoric acid prices however continue to be firm while DAP prices remain weak
- Change in policy resulting in DAP subsidy prices being linked to international prices with a lag of 2 months instead of 1 month enables better predictability and management operations.
- IMACID declared a 20 per cent dividend (Tata Chemicals share: Rs 24 crore) for the year ended December 31, 2008
ADAPT
The Company's focused cash conservation and efficiency programme ADAPT has enabled considerable savings of both fixed and variable costs across manufacturing units. Savings during the quarter under review as a result of the programme are expected at around Rs 50 crore
For further information contact:
Sujit Patil
Head, Corporate Communications
Tata Chemicals Ltd
E-mail: spatil@tatachemicals.com
Rakesh Reddy / Soumyashree Saha
Mobile: +91 22 6656 8787
E-mail: rakesh@vccpl.com, ssaha@vccpl.com
Some of the statements in this document that are not historical facts are forward looking statements. These statements are based on the present business environment and regulatory framework. We assume no responsibility for any action taken based on the said information, or to update the same as circumstances change.