TATA Chemicals’ Q2FY1718 Consolidated income from operations at Rs.3,462 Cr; PAT at Rs 273 Cr, Up 52 percent YoY


TATA Chemicals’ Q2FY1718 Consolidated income from operations at Rs.3,462 Cr; PAT at Rs 273 Cr, Up 52 percent YoY

Tata Chemicals Limited (the “Company”) today declared its Consolidated Financial Results for the second quarter ended September 30, 2017. The Company reported income from operations for the quarter ended September 30, 2017 on consolidated basis at Rs. 3,462 Cr, lower by 0.7% and Rs. 1,598 Cr, lower by 1.0% on a standalone basis. PAT was recorded at Rs. 273 Cr, up by 52% on a consolidated basis and at Rs. 156 Cr, up by 81% on a standalone basis.

Consequent to implementation of Goods and Service Tax (“GST”) from 1st July 2017, net income from operations is net off GST. On a like to like basis, the Revenue from operation for Q2 FY18 is at Rs. 1,598 Cr, up by 2.6%, as compared to Q2 FY17 Rs 1,557 Cr (net off excise duty).

Standalone Q2 FY17-18

  • Indian Chemicals business continues healthy performance due to stringent cost control and operational efficiency
  • Tighter marketing spends in the spices and pulses business offset lower sales volumes
  • The Phosphatic fertiliser business registered improvement in the operational efficiency, but lower volumes due to temporary closure of Haldia operations in Q1
  • Entered into BTA signed with IRC Agrochemicals for transfer of Phosphatic fertilizer business
  • Results for the quarter include an exceptional charge of Rs 53 Cr representing the shortfall between carrying value of net assets over the recoverable amount
  • Outstanding Subsidy receivable as on 30th Sept 2017 was Rs 1,228 crs (Rs 1,105 Crs as on 30th June 17)

Consolidated Q2 FY17-18

  • North American operations continue to maintain steady performance backed by higher production and sales
  • European operations show improved performance with better efficiency
  • Magadi registers further improvement in operational performance with better sales volumes and profitability
  • Rallis India maintains steady performance with improved performance from Metahelix
  • Consolidated net debt on 30th September was Rs. 4,459 Cr against Rs 5,573 Cr on 31st March 2017

Business-wise Performance

Living Essentials

  • Tata Salt’s campaign – Sehat ki Chuski wins yet another award, the ‘Gold Dragon’ for best innovative idea at the Asia Pacific Awards Dragons of Asia by PMAA
  • Tata Salt remains the market leader in national branded segment
  • The business continues to focus on growing volumes across categories

Industry Essentials

  • European operations register improvement in volume sand performance after the fire in Lostock facility
  • Detergent speckles –DetMate and Pharma grade Bicarb- Medicarb launched in India

Farm Essentials

  • Sustained production at Babrala at planned energy levels
  • Digital platform-Dhrishti launched across India. Roll out planned for three crops – cotton, paddy and tomato in Rabi season

Executive Comment

Mr. R. Mukundan, Managing Director, Tata Chemicals Ltd., said, “The quarter under review saw a steady performance from the Indian as well as global Chemicals Business, registering improved profitability owing to cost and operational efficiencies.

In the Consumer business, Tata Salt remains the market leader. We continue to direct our efforts towards growing market shares across product categories and furthering customer excellence

In the farm business, Rallis India and Metahelix continues to register a sound performance in the crop protection business. The company is pleased to have found a suitable partner to further build the Phosphatic fertilizer business, this being in line with our earlier announcement on the sale of the Urea business to exit the fertilizer business.

Our strategy remains to focus on the specialty chemicals and consumer food business as our key areas of growth, while maintaining leadership in the Inorganic Chemicals Business.

About Tata Chemicals

A part of the over US$ 100 billion Tata Group, Tata Chemicals Limited, is a global company with interests in businesses that focus on LIFE —Living, Industrial and Farm Essentials. The story of the company is about harnessing the fruits of science for goals that go beyond business. Through its Living Essentials portfolio the company has positively impacted the lives of millions of Indians. Tata Chemicals is the pioneer and market leader in India’s branded Iodised salt segment. Extending its portfolio from salt to other food essentials, TCL unveiled India’s first national brand of pulses, followed by a range of spices. Tata Chemicals has been rated as one of the top 10% in Business and Consumer brands across all industry and consumer brand categories in India by Superbrands. 

The company’s Industry Essentials product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents and other industrial products. Tata Chemicals currently is the world’s second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America.  

With its Farming Essentials portfolio the company through its subsidiary Rallis, has a strong position in the crop protection business. 

The Tata Chemicals Innovation Centre is home to world class R&D capabilities in the emerging areas of food sciences, nanotechnology and biotechnology.


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