Tata Chemicals PAT for Q1 FY18 stands at Rs178 crore

Tata Chemicals PAT for Q1 FY18 stands at Rs178 crore

Tata Chemicals Group (the “company”) today declared its consolidated financial results for the first quarter ended June 30, 2017. The company reported income from operations for the quarter ended June 30, 2017 on a consolidated basis at Rs2,649 crore and consolidated PAT of Rs178 crore.

Standalone Q1 FY17-18

• The plant at Mithapur continued to perform well.
• Sustained production from Babrala at planned energy levels.
• The consumer products unit saw 27 percent reduction in market outstanding. (Rs60.59 crore in June 2017 VS Rs82.73 crore in March 2017).
• Subsidy outstanding – Rs1,101 crore (March 2017 – Rs1,684 crore).
• Smooth transition to GST. Project execution as per plan.

Consolidated Q1 FY17-18

• TCNA maintained consistent performance in Q1. The soda ash production was 1.6 percent above Q4 PY. Continued focus on cost control and safe, efficient plant operations.
• The UK operations saw good sales volume growth in the quarter v PY, offset by a fire at Lostock which resulted in production loss of soda ash.
• Magadi witnessed an increase in market demand in Q1. Focus on improving quality and production efficiency.
• Rallis maintained a steady performance supported by improved Metahelix performance.
• Last year included Rs30 crore one-time Rallis land sale income.

Business-wise performance

Living essentials

• Consumer business continuous to focus on growing volumes across categories and improving market share.
• Tata Salt’s campaign – Sehat ki Chuski won the ‘Baby Elephant Trophy’ at Kyoorius Creative Awards 2017. Tata Salt also won three silver awards at the Foxglove Awards for best in class marketing and brand communication practices.
• In line with its philosophy of Active Health Management, Tata Salt Lite was associated with ‘Pinkathon’ – India’s biggest women’s run. In Chennai 8,000 women participated in the run.

Industry essentials

• Indian Chemicals business – production and sales volumes flat with PY
• North American operations continues to focus on plant reliability and improving operating margins and output. Production was 1.6 percent higher as against Q4 PY.
• European operations – the general demand has been steady in Q1, with all major sectors close to expectations.
• Magadi – the demand for soda ash was favorable due to capacity reduction in China.

Farm essentials

• Sustained production at Babrala at planned energy levels, Haldia plant recommenced operations on 7 July
• Digital platform – Dhrishti launched across India. Roll out planned for three crops – cotton, paddy and tomato in Kharif season

Executive comment
R Mukundan, managing director and CEO, Tata Chemicals, said, “The quarter under review has seen a good performance from the global chemicals business. Our sustained focus on improving operational performance and cost efficiencies has ensured margin gains in spite of a fire incident at Lostock.

In the farm business, Rallis India and Metahelix continue to focus on achieving higher sales and margins. There was a temporary suspension of operations at Haldia in Q1 due to the planned relocation of the ammonia pipeline and a notice from CPCB. However, plant operations have resumed and our focus will be on stabilising the plant operations there.

The consumer products business continues to grow and Tata Salt maintains its market leader position. Going forward, we will continue our focus on delivering operational excellence across our business with emphasis on customer, accountability and performance.

Our strategy to continue to grow the consumer and specialty businesses is on track including investments in Nutraceuticals and silica projects.