Tata Chemicals' fiscal Q4 net income down to 1.6B Indian rupees from 1.9B rupees in year-ago period; net sales down 2.2% to 20.8B rupees with stable demand across soda ash, bi-carb, salt

MUMBAI , May 27, 2013 (press release) – Declares dividend of Rs10 per share; total outlay Rs294.42 crore

FY13 consolidated financial highlights

  • Income from operations at Rs14,859 crore.
  • Profit from operations at Rs2,163 crore.
  • PBT at Rs913 crore.
  • PAT at Rs400 crore.
  • EPS at Rs16.

FY13 standalone financial highlights
  • Income from operations at Rs8,530 crore.
  • Profit from operations at Rs1,046 crore.
  • PBT at Rs825 crore.
  • PAT at Rs643 crore.
  • EPS at Rs25.

Q4 FY13 consolidated financial highlights
  • Income from operations at Rs3,391 crore.
  • Profit from operations at Rs471 crore.
  • PBT at (-) Rs82 crore.
  • PAT at (-) Rs188 crore.
  • EPS at (-) Rs7 (not annualised).

Q4 FY13 standalone financial highlights
  • Income from operations at Rs1,998 crore.
  • Profit from operations at Rs182 crore.
  • PBT at Rs208 crore.
  • PAT at Rs160 crore.
  • EPS at Rs6 (not annualised).

Q4 FY13 and FY13 – performance highlights
  • Demand across soda ash, bi-carb and salt stable.
  • Salt and cement production higher than previous year.
  • Urea production on expected line.
  • Neem coated urea accounts for 35 percent of urea production.
  • SSP production and demand back on track in second-half. Registers sales growth of 60 percent y-o-y.
  • Salt franchise sale 8 percent higher than previous year.
  • Tata Swach bulb registers 15 percent growth y-o-y.
  • Subsidy receivable at Rs1,753 crore as on March 31, 2013. Realisation a challenge.
Commenting on the company's Q4 FY13 performance, R Mukundan, managing director, said, "Overall for the year the domestic chemicals and consumer business registered 36 percent EBIT growth whereas fertilisers had a 20 percent fall in EBIT. Overall, the company registered a growth of 15 percent in EBIT across segments. With continued softness in the fertiliser segment, we expect a muted performance even though there is a positive tailwind from expectations of a normal monsoon as announced by the weather bureau. On consolidated basis, results were impacted due to impairment charge of Rs484 crore, which led to a 52 percent fall in consolidated annual profit. We expect times to be challenging both domestically and internationally and this, coupled with liquidity crunch due to delayed payment of subsidy, continues to drag the company's performance. On the strategic front, we continue to focus on specialty and consumer business and the implementation of the nutraceuticals plant in Chennai is on schedule."

Businesswise performance

Living essentials
  • Tata Chemicals remained the market leader with 66 percent market share in the national branded segment.
  • Tata Salt retailer family grew by 14 percent in FY12-13.
  • Water purifier business achieved 15 percent y-o-y growth in bulb sales.
  • Pulses sales volume grew steadily compared to previous year.
  • I-Shakti pulses voted product of the year.
  • Besan was launched in Ghaziabad, Lucknow, NCR, Faridabad, Agra, Bareilly, Saharanpur and Patna.

Industry essentials
  • Global as well as domestic soda ash demand firm.
  • Soda ash prices for the quarter were stable, though pricing pressure increased.
  • Cement production for the year higher than expected.
  • TCE performance was impacted due to equipment issues, but is now improving.
  • TCNA production on expected lines.
  • TCM sales were impacted due to rains, but is getting back to normalcy

Farm essentials
  • Urea production along expected lines. Demand impacted due to poor monsoon.
  • Demand for neem coated urea seen rising in the market. Accounted for 35 percent of total urea production in FY12-13.
  • SSP registers 60 percent sales growth y-o-y.
  • Rallis net sales up 15 percent for FY13. Registers EBIDTA of 15 percent.
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