Tata Chemicals consolidated income from operations for Q3 FY14-15 at Rs4,820 crore – up by 5 percent
Tata Chemicals Limited (TCL), a global company with LIFE as its business — Living, Industry and Farm Essentials — reported an impressive 5 percent jump in its income from operation at Rs4,820 crore.
Key performance and financial highlights:
Standalone
- Soda ash demand stable, prices firming up
- Improved margins and volume in salt business
- Farm Essential business — weaker operating performance — below expectation
- Subsidy receivable at Rs1,664 crore as on 31st December 2014. Subsidy collections under pressure
Consolidated- Global soda ash demand continues to be positive; better realisation across all geographies
- Turnaround strategy in Kenya starting to show results
- European restructuring in progress
- Rallis India Q3 revenues at Rs385 crore. Crosses gross revenue of Rs1,500 crore in nine months
Financial Highlights for the Q3 FY14-15:Standalone- Income from operations at Rs3,019 crore, up by 13 percent
- Profit from operations at Rs275 crore, up by 1 percent
- PBT at Rs257 crore, up by 35 percent
- PAT at Rs205 crore, up by 39 percent
- EPS at Rs8.03 (not annualised)
Consolidated- Income from operations at Rs4,820 crore, up by 5 percent
- Profit from operations at Rs590 crore, up by 17 percent
- PBT at Rs374 crore, up by 183 percent
- PAT after minority interest at Rs238 crore
- EPS at Rs9.35 (not annualised)
Commenting on the company's Q3 FY14-15 performance, R Mukundan, managing director, Tata Chemicals, said:
"The quarter under review has been encouraging, apart from good performance by all businesses; the restructuring exercise at Kenya has been completed and has resulted in positive improvements. European operations restructuring is in progress.
Stand-alone revenue were up by 13 percent to Rs3,019 crore and net profit up by 39 percent to Rs205 crore due to better performance in the consumer and chemicals business in India. Better realisation at Tata Chemicals North America and positive performance by all the other businesses took the consolidated revenue to Rs4,820 crore, a jump of 5 percent. Revenue growth of 5 percent is after closure of soda ash capacities in Kenya and the UK in the previous year.
Consumer products business continues to grow consistently at the market place and maintains its leadership position with a market share of 69 percent in the national branded edible salt market. I-Shakti pulses and Tata Swach reported healthy volumes and continues to grow steadily with focus on increasing the penetration levels across India. Continued focus on expansion of branded products portfolio and market penetration helped Living Essential business achieve turnover of Rs1,121 crore in first nine months of FY 2014-15.
The Fertiliser business continues to face headwinds due to lack of clarity in policy which resulted in substantial production loss. In addition to this, subsidy outstanding at Rs1,693 crore is a challenge and continues to hamper the balance sheet. The new product NP 20 launched under farm essential business is doing well at market place and has received encouraging response.
We continue to focus on reshaping the portfolio to enhance share of consumer product business and non-subsidised farm inputs business."
Businesswise performance
Living essentials- Tata salt — market leader in the national branded salt segment with 69 percent market share
- I-Shakti pulses and Besan achieved all time high sales in Nov 2014. Available in about 90,000 retail outlets now
- I-Shakti Spices being test marketed in Punjab, encouraging market response
Industry essentials- Global soda ash demand positive. Prices firming up
- Domestic soda ash demand stable
- Domestic soda ash demand in Europe stable
- Magadi operations show that turnaround strategy has started showing results
- Better realisation at North America
Farm essentials- Urea production impacted due to lack of policy clarity
- Specialty fertilisers register higher sales
- New product Tata Paras 20:20 received good market response