Tata Chemicals consolidated net profit for FY 2012 at Rs838 crore, up 28 percent
FY 2012 revenues up 25 percent at Rs13,806 crore
Dividend at Rs10 per share
Commenting on the company's Q4 and FY 2012 performance, R Mukundan, managing director, said:
"I am happy to say that our performance for the quarter and the year under review has been satisfactory. We have been able to maintain decent margins in an environment riddled with uncertainties and rising input costs. While our operations have contributed towards this performance, we continue to focus on improving our efficiencies.
"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 iodised salt and flavoured salts. Tata Swach and i-Shakti pulses continue to grow in a healthy manner.
"Going forward, the demand scenario for industry and farm essential businesses could face pressure due to the global slowdown and uncertain economic policies. However, the living essentials portfolio will continue to grow substantially on the back of a stable demand across all its product categories.
"Energy price volatility combined with a weakening currency does pose challenges for us going forward. However, our performance will be driven by our core strength to build on our customer and distribution leadership position across markets. Access to low-cost resources and a focus on operational excellence would further enhance our competitive position to create stakeholder value across our businesses."
Year – on – year consolidated performance comparison
FY 2012 (April 2011 – March 2012) versus FY 2011 (April 2010 – March 2011)
- Net sales at Rs13,608 crore compared to Rs11,061 crore in FY 2011, an increase of 25 percent.
- Profit from operations at Rs2,304 crore compared to Rs1,864 crore in FY 2011.
- PBT stood at Rs1,383 crore, up 23 percent from Rs1,121 crore in the corresponding period last year.
- PAT (after minority interest) increased by 28 percent to Rs838 crore from Rs653 crore.
Segmental performance
Living essentials
- Tata Chemicals remained the market leader with 64 percent market share in the national branded segment.
- 200,000 MT salt capacity expansion in Mithapur successfully commissioned.
- Tata Salt Plus – iron-fortified iodised salt and "Flavoritz", flavoured salts, launched.
- Urban India reach: 8.5 crore households via >1 million retail outlets.
- I-Shakti pulses available across 19 states.
- Tata Swach voted as the "Product of the Year – 2012".
Industry essentials
- Global soda ash demand firm.
- Domestic soda ash demand flat due to delays in commissioning of some float glass lines.
- Demand for sodium bicarbonate in UK highest at 63 KT.
- Capacity debottlenecking at TCNA added 100,000 MT.
- Soda ash and sodium bicarb operations stable in Mithapur.
- British Salt performance robust – production, sales and realisations continue to be healthy.
- Cement sales crossed 500,000 MT for the first time
- TCML doubles operating margins on the back of improved efficiencies.
Farm essentials
- SSP debottleneck completed on November 30, 2011. Average production achieved 650 TPD versus earlier 450 TPD
- Babrala plant shut down from March 30 to May 1, 2012, for replacing the ammonia converter.
- Formal announcement of urea investment policy awaited.