Press releases

Tata Chemicals standalone PAT at Rs 444 crore - up by 26 per cent over FY06

• Record Results, Highest Sales, Highest Profits, Highest Returns
• Highest ever sales for Soda ash, Salt and Urea in a single financial year
• Demand and Prices for all key products continue to be firm both internationally and domestically - outlook for the current year unchanged
• High capacity utilisation levels across all manufacturing units
• New business initiatives - 'Fresh Produce' & 'Alternative Fuels' progressing as per plan, Innovation Centre building possible portfolio of the future
• Board of Directors recommend a dividend of Rs 8 per equity share

FY07 Financial Highlights

Standalone

• Revenues at Rs 3,991 cr - up by 13% over FY06
• Basic EPS Rs 20.65, Diluted EPS: Rs 18.31

Consolidated (incl overseas subsidiaries)

• PAT at Rs 508 cr
• Revenues at Rs 5,810 cr
• Basic EPS: Rs 23.62, Diluted EPS: Rs 20.93

Q4 FY07 Financial Highlights

Standalone

• PAT at Rs 94 cr - up by 47% over Q4 FY06
• Revenues at Rs 803 cr - up by 7% over Q4 FY06
• Basic EPS Rs 4.39, Diluted EPS: Rs 3.73

Tata Chemicals Limited, a leading manufacturer of chemicals, fertilisers and food additives today announced its audited financial results for the quarter and financial year ended March 31, 2007. The Company is the third largest manufacturer of soda ash and sodium bicarbonate in the world, apart from being the leader in the Indian market. Tata Chemicals also enjoys leadership in the Indian edible salt market and is the most efficient manufacturer of urea fertilizer in the country.

Commenting on the Company's performance for Q4 and FY2007, Homi Khusrokhan, Managing Director, Tata Chemicals, said, "I am delighted to report strong operating and financial performance for the year under review. Sales of all our major products were strong on the back of healthy demand which has continued into the current year. We have also entered new spaces like fresh produce and alternate fuels wherein I believe Tata Chemicals is capable of delivering significant value. We are excited with both the performance of our ongoing businesses as well our new ventures and look forward to an even stronger growth performance"

Note:
Consolidated financials indicated in this communication are unaudited and primarily include those of the Brunner Mond Group acquired in December 2005 and the one third stake acquisition in Indo Maroc Phosphore S.A. (IMACID)

Segmental Performance

A. Chemicals

• Domestic sales improved 13.4% over the corresponding 12 months YOY while PBIT increased 13.6% in the same period. FY07 PBIT margin was 24.3%
• Favourable demand, tight supply conditions and efficient operations enabled the Chemicals SBU to perform healthily, despite rupee appreciation

Soda ash

• Performance perspective
• Tata Chemicals maintained its leadership position in the domestic soda ash market with an overall domestic marketshare (including imports) of 32% for the year under review
• Industry perspective and outlook
• Domestic and international prices remained firm. Import prices stood at USD190-200/tonne and are expected to remain at these levels in the medium term

Food additives

• Tata Chemicals maintained dominance in the domestic edible salt market with a 47% marketshare in the national branded segment
• Tata Salt sales in FY07 at 475,000 tons has been the highest ever

B. Fertilisers

• FY07 revenues from the fertiliser business were Rs. 2,487 crore, higher by 13.4% compared to Rs. 2,192 crore in FY06. PBIT margin for the financial year was 9.8%
• Significant subsidy outstanding in both the nitrogenous and phosphatic fertiliser businesses however continues to impact cashflows
• Nitrogenous (Urea)
• Pursuant to obtaining Government approval, the Company has commenced debottlenecking its Babrala urea manufacturing facility. The capacity is being increased by 40%
• This project which involves a minimal investment of around Rs 150 crore will not only help the Company better service domestic demand but also contribute improve efficiencies through economies of scale. The expansion is expected to be completed in the next 18 - 24 months
• During the quarter, the Company's market share for urea in its core command areas grew to 16%

Phosphatics (NPK, DAP)

• Production volumes of DAP, NPK and complex fertiliser during the year under review were the highest ever achieved
• Higher value NPK fertilizers continued to comprise a greater proportion of phosphatic fertilizer sales
• The Company's marketshare in its core command areas stood at 47% for DAP and 59% for NPK

C. Foreign subsidiaries and joint ventures overview

• Performance of BMGL has been strong
• The expansion of the Brunner Mond manufacturing facility at Magadi, Kenya encountered an operational delay. The fully doubled capacity is expected to be operational in the second quarter of the current financial year

D. New businesses

Fresh Produce Business

• In January, the Company entered into a joint venture in India with Total Produce plc of Ireland, Europe's largest fresh produce company to create state of the art distribution facilities for fresh fruits and vegetables across India
• The joint venture company is named 'Khet-Se'
• This initiative as an opportunity to integrate the supply chain from the producer and the end consumer to increase efficiencies, improve shelf life and reduce product loss
• Tata Chemicals' TKS centers which number around 600 will act as the first level contact point for procurement and primary processing.
• Over the next 12 months the Company proposes to establish its first two centres in the north and east of the country. Plans are in being made for a swift launch in other regions over the next few years /

Innovation Centre

• Presently 17 scientists including nanotechnologists, biotechnologists, molecular biologists and bioengineering experts are working at the Innovation Centre
  
• The focus of the Innovation centre is in developing products and processes via the application of bio and nanotechnology

Bio Fuels

• Tata Chemicals sees substantial scope and potential in this business. Appropriate feedstock has been identified.
• It proposes to use conventional technologies as well as leverage the new technologies discovered by the Innovation Centre to drive growth in this business