Tata Chemicals Q3 FY17 consolidated income from operations at Rs3,495 crore; PAT at Rs264 crore up by 33 percent
Tata Chemicals today declared its consolidated financial results for the third quarter ended December 31, 2016. The company reported income from operations for the quarter ended December 31, 2016, on consolidated basis at Rs3,495 crore and PAT increased by 33 percent consolidated basis to Rs264 crore.
Standalone Q3 FY16-17
- Sustained operational performance in the soda ash and salt business.
- Better margins due to change in sales mix and lower input cost in phosphate business, delivers profitability.
- Sustained operational excellence at urea.
- Overall improved working capital management.
- On a standalone basis net debt on December 31, 2016 was Rs1,318 crore against Rs2,937 crore on March 31, 2016.
Consolidated Q3 FY16-17
- North American operations register increased production volume over previous year, benefitting from improved plant reliability. UK operations continue their improved performance on account of cost control and Kenya operations improves its product performance. Profit performance improves further across all units.
- Rallis registered improved performance with higher sales and operating margins, revenues up by 7 percent
- Consolidated net debt on December 31, 2016 was Rs5,883 crore against Rs7,830 crore on March 31, 2016.
Business-wise performance
Living Essentials
- Tata Salt was ranked as one of the ‘most trusted brand’ by the Brand Equity Survey.
- Encouraging response received for the newly launched products under the Tata Sampann brand.
- Tata Salt remains the market leader in national branded segment.
Industry Essentials
- Indian Chemicals business continues to register steady performance, in spite of lower sales volumes.
- North American operations show improved operating margins and output.
- European operations continues to register good performance on the back of cost control measures.
- Magadi improves product performance yielding better results.
Farm Essentials
- Normal monsoon rain led to good prospects for agriculture and healthy demand.
- Focus on maintaining efficient operations and market driven product strategy at Haldia.
- Better margins in urea business due to higher sales volume and working capital management.
Executive comment
R. Mukundan, managing director, Tata Chemicals, said, “This quarter registered good performance across businesses in India, as well as other geographies, in spite of challenges faced on several fronts. Strong focus on operational excellence helped maintain the steady performance of the Indian chemicals and consumer business. Our North American, European and African operations performed well due improved reliability of operations. We remain committed to our focus on driving best in class operational excellence.
“In the consumer product business, we thank our consumers for their continued support towards Tata Salt, which was ranked as one of the ‘most trusted brand’ by the Brand Equity Survey. The recent products launched under the umbrella brand of Tata Sampann have also received a very encouraging response and are being made available across regions in the country. However, there has been a short term impact on performance post the government intervention on capping prices of pulses.
“The fertiliser business showed good performance driven by tight focus on working capital and operational excellence backed on a normal monsoon and healthy demand, despite continued pressure of high subsidy outstanding at Rs1,323 crore.
“Going forward, we will continue our focus on the delivering operational excellence across our business and driving growth in consumer products and specialty chemicals.”