Tata Chemicals Q1 FY13 net sales at Rs3,066 crore
Profit after tax (PAT) at Rs108 crore
Q1 FY2013 consolidated financial highlights
- Income from operations at Rs3,066 crore.
- Profit from operations at Rs495 crore.
- Profit before tax (PBT) at Rs210 crore.
- PAT after minority interest at Rs108 crore.
- Earnings per share (EPS) at Rs4.22 (not annualised)
Key Highlights
Results for the quarter were significantly impacted on account of:
- No production of complex fertilisers at Haldia owing to phos acid price impasse.
- A month-long shutdown at Babrala for maintenance and replacement of ammonia convertor.
- Significantly lower production at IMACID due to non-finalisation of phos acid pricing.
- Operations at Magadi impacted due to heavy floods.
- Increased foreign exchange loss of Rs100 crore on account of both trade and borrowings (AS-11).
Current updates
- Haldia operations resumed post finalisation of phos acid prices.
- Babrala operations are now stable and in line with expectations.
- IMACID resumed production with effect from June 2, 2012.
- Tata Chemicals Magadi (TCM) taking all steps to face the challenges posed by the floods.
Commenting on the company’s Q1 FY 2013 performance, R Mukundan, managing director said:
“The company was faced with unprecedented challenges during the quarter which adversely impacted the operating performance. While the company had a marginal increase in turnover, the margins came under pressure due to plant shutdowns. In addition to the Rs62 crore impact of rupee depreciation (AS 11 impact), this quarter witnessed Haldia and IMACID plant closure for substantial part of the quarter due to delay in acid contract finalisation. Babrala plant too was shut for one month due to the annual turnaround. Magadi operations were affected due to floods caused by unseasonal heavy rains. All our facilities have now resumed operations in full strength and are performing to expected levels.
“Going forward, we see the demand for soda ash and other industrial chemicals weakening due to the global slowdown and, the farm essential business could face the challenge of uncertain monsoons.
“We continue to lead the market in the national branded salt category. Our portfolio has been enhanced by the introduction of Tata Salt plus – iron fortified iodized salt and flavored salts. Tata Swach and i-Shakti pulses continue to grow in a healthy manner.”
Segmental performance
Living essentials
- Launched double fortified salt and Flavoritz - both the products showing encouraging response from customers.
- I-Shakti dals available in 21 states across the country.
- Tata salt remained the national leader in branded salts category with 64.7 percent market share in the national branded segment.
Industry essentials
- While global demand for soda ash and bicarb was stable in Q1, going forward the demand environment could weaken.
- In India, soda ash demand is expected to be in the range of 5 – 7 percent.
- Tata Chemicals North America (TCNA) – The production is down due to plant teething issues. These are now resolved and the production for June is as per expectations.
- Magadi plant has resumed operations after it remained partially disrupted during the quarter ended June 2012 due to flooding caused by unseasonal heavy rains.
Farm essentials
- Babrala plant was shut down from March 30 to May 1, 2012 for annual turnaround and replacement of ammonia converter.
- Two units of di-ammonium phosphate (DAP) at Haldia plant have resumed operations. The operations at these two units were suspended during the period from April 1, 2012 to July 3, 2012 due to disruption in supplies of phos acid.
- IMACID production was impacted throughout the quarter due to price agreement. The price settlement was finalised after protracted negotiations.
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For media enquiries, please contact:
Ms. XXXXXXXXXX
Telephone:
91-22-6652 6652 /6652 6653
Fax: 91-22-6652 6653
Email: XXXX@tatachemicals.com