Tata Chemicals' first-half net profit up by 30 per cent
Tata Chemicals Limited has reported an increase of 30 per cent in profit after tax (PAT) for the half-year ended September 30, 2001, compared with the same period in the previous year. PAT for the half-year ended September 30, 2001, is Rs 56.60 crore compared with Rs 43.59 crore during the same period in the previous year.
Sales dropped by 13 per cent to Rs 679.48 crore during the first half of the current year from Rs 784.62 crore during the same period last year. This was due to reduced production following the fire in the company’s chemical plant at Mithapur in March 2001. Operating costs were reduced by 17 per cent to Rs 493.31 crore during the first half of the current year, from Rs 592.12 crore for the same period last year.
The reduction in net interest cost by 29 per cent, to Rs 62.26 crore during the first half of current year from Rs 87.24 crore for the same period last year, has further strengthened the company's bottom line. Overall, this has resulted in profit before tax increasing by 41 per cent to Rs 71.19 crore in the first half of the current year (from Rs 50.59 crore for the same period last year).
The restoration work at the Mithapur facility is almost complete and the soda ash and salt facilities are working at full capacity. While recent events have cast a shadow on the economic growth of key sectors which are major users of soda ash, the company expects to continue its good performance in the current financial year. The focus on cost reduction has begun to yield results, and this is expected to be sustained.
Driven by a return to normalcy at the Mithapur facility, the company intends to progressively increase its market share in soda ash. The company is actively working on strategies that will focus on the leadership of its Tata Salt brand.
The good monsoon has ensured adequate offtake of urea from its fertiliser facility at Babrala, and it is expected that the rabi season will be normal.