Tata Chemicals’ Q4 FY2011 net profit up 14 per cent at Rs146 crore
FY2011 net profit up 8 per cent at Rs653 crore
Dividend at Rs10
Q4 FY2011 Consolidated financial highlights
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PAT after minority interest at Rs146 crore; up 14 per cent
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Net sales at Rs2,658 crore; up by 16 per cent
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Profit from operations at Rs476 crore; up 14 per cent
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PBT at Rs262 crore; up 60 per cent
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EPS (non-annualised) Rs5.75
FY2011 Consolidated financial highlights
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PAT after minority interest at Rs653 crore; up 8 per cent
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Net sales at Rs11,060 crore; up by 16 per cent
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Profit from operations at Rs1,864 crore
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PBT at Rs1,121 crore; up 20 per cent
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EPS (annualised) Rs26.10
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TCL board recommends a dividend of Rs10 per share
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i-Shakti Dals launched in Delhi – Thrust on offering quality and
hygienic pulses at an affordable price through linkages with the farmer.
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Initial investment of $15 million in the biofuel production in Mozambique
on engineering and infrastructure.
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Acquired 25.1 per cent stake in stream I (1.3 million TPA) at Gabon-based
fertiliser unit for $290 million — value accretive and strategic advantages
— assured gas supply at fixed price and proximity to port.
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Entered into a technical services agreement with Notore Chemical Industries
(Notore) to optimise and achieve breakthrough performance in the operations
of its fertiliser plant.
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Rebranding of international subsidiaries in the UK, the USA and Kenya
under the Tata Chemicals corporate brand completed — creates a common
global identity whilst strengthening the Tata Chemicals brand across three
continents.
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Debottlenecking of SSP capacity at Haldia: Capacity expansion by 50K
TPA at a cost of approximately Rs11 crore — expected completion by
Q4 FY2012.
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Expansion of domestic salt capacity: 200ktpa debottlenecking capacity
at Rs180 crore on track and expected to commence operations by March 2012.
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Expansion of soda ash capacity at GCIP: Study under progress for increasing
capacity by 400ktpa.
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Fertiliser unit at Gabon: Setting up of 1.3 million tpa urea capacity
expected to be commissioned within 36 months.
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Phos acid expansion along with DAP capacity at IMACID, Morocco: Study
underway to double phos acid capacity along with approximately 1 million
tpa DAP capacity.
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Capacity doubling at Babrala: Currently on hold — awaiting policy
clarity on gas allocation and pricing.
Commenting on the company’s Q4 and FY2011 performance, R Mukundan,
managing director, said:
“Our performance for the quarter and year under review is very encouraging
especially considering the strong headwinds in the form of increasing input
prices, rising interest rates and natural calamities across many regions of
our operations. Our Chemicals business has done well on the back of enhanced
operations, increased volumes and stable margins. Our Consumer business also
continues to perform very strongly. Tata Salt is a leader by a large margin
while our recent introductions, namely i-Shakti salt and pulses continue to
enjoy healthy consumer demand. We do see continued growth in our agri business
on the back of improved performance of pesticides and the seeds business.
However the performance of our fertiliser business needs to be looked at in
light of the constraints faced by it as a result of reduction in gas availability
and lower subsidies for potash and phosphatic fertilisers.
Tata Chemicals’ continued focus will be to expand its operations closer
to the source of the raw material. The acquisitions of Magadi and GCIP were
a step in that direction and as a result our natural soda ash capacity is
60 per cent of total capacity. Our investment in Gabon towards the setting
up of a large scale urea facility is another initiative in line with this
strategy.
Tata Chemicals has in place a strong growth platform. We will leverage our
combined strengths of customer and distribution leadership position in all
markets and access to low cost resources to further enhance our competitive
position and create stakeholder value across all our businesses.”
Year – on – Year performance comparision
FY2011 (April 2010 – March 2011) v/s FY2010 (April 2009 – March
2010)
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Net sales at Rs11,060 crore compared to Rs9,544 crore in FY2010, an increase
of 16 per cent.
-
Profit from operations at Rs1,864 crore compared to Rs1,840 crore in
FY2010.
-
PBT stood at Rs1,121 crore, up 20 per cent from Rs933 crore in the corresponding
period last year.
-
PAT (after minority interest) increased by 8 per cent to Rs653 crore
from Rs606 crore.
Segmental Performance
Soda ash
-
Domestic demand for soda ash and sodium bicarbonate healthy — expected
to rise by 5 per cent and 14 per cent respectively during FY2012.
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However, rising input (coal, coke and limestone) costs continue to exert
pressure.
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Demand outlook in India, China and Latin America robust.
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Extreme winter during early January 2011 and non-availability of anthracite
lower production at Tata Chemicals Europe's Lostock plant.
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Higher production and improved realisations improve Magadi performance.
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Increased production combined with rise in annual contract prices result
in higher profitability in North America operations.
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Salt
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Pulses
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Encouraging response for i-Shakti pulses – FY2011 sales at over
approximately 1,000 tonnes.
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i-Shakti range of pulses launched in Delhi.
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Thrust on introducing quality and hygienic pulses at an affordable
price.
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Water purifier
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Momentum in “Swach” continues – FY2011 sales at over
4 lakh units.
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New introductions “Swach” and “Swach Magic” show
promise.
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Swach now available across 9 states.
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Phosphatic fertiliser under pressure due to low subsidy, high input costs.
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Subsidy rates for DAP and MOP increased to $612 and $420 respectively
— increase a positive for industry — reduces pressure on operations.
-
Improved phosphoric acid prices lend healthy visibility for IMACID.
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Strong growth in domestic business driven by value added offering to
farmers in the last four years — despite the setback due to unseasonal rains.
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Revenues up by 20 per cent at Rs1,047 crore and PAT up by 25 per cent
at Rs126 crore for the year ended March 31, 2011.
For further information contact:
P.K. Ghose
Tata Chemicals Ltd
Tel: +91 22 6665 8282
Fax: +91 22 2285 1132
E-mail: pkghose@tatachemicals.com
Gavin Desa / Dhiraj Rajpal
Citigate Dewe Rogerson
Tel: +91 22 6645 1237 / 1241
Fax: +91 22 6645 1213
E-mail: gavin@cdr-india.com,
| dhiraj@cdr-india.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