Tata Chemicals reports consolidated income from operations for fiscal Q3 climb 10% year-over-year to 45.8B rupees

MUMBAI, India , February 3, 2014 (press release) – Mumbai: Tata Chemicals (TCL), a global company with interests in businesses that focus on LIFE —living, industrial and farm essentials — reported a 10 percent jump in its income from operations at Rs4,580 crore.

Key performance and financial highlights

  • European business restructuring on track. Winington facility ceases production of soda ash on February 3, 2014.
  • Soda ash, salt, sodium bicarbonate and cement production in line with expectations. Demand stable in domestic market.
  • Consumer products business performance on expected lines.
  • Global soda ash demand remained stable and slightly improved in pockets.
  • Urea production on expected lines. SSP and DAP demand and production improving.
  • Rallis India Q3 net up by 38 percent to Rs30 crore.
  • Subsidy receivable at Rs1,678 crore as on December 31, 2013.
  • Subsidy collections likely to face pressure in the coming quarters.

Financial highlights for Q3 FY13-14

Standalone
  • Income from operations at Rs2,672 crore.
  • Profit from operations at Rs273 crore.
  • PBT at Rs190 crore.
  • PAT at Rs148 crore.
  • EPS at Rs5.80 (not annualised)

Consolidated
  • Income from operations at Rs4,580 crore.
  • Profit from operations at Rs504 crore.
  • PBT at Rs132 crore.
  • PAT after minority interest at Rs16 crore.
  • EPS at Rs0.63 (not annualised)

Commenting on the company's Q3 FY13-14 performance, R Mukundan, managing director, Tata Chemicals, said: "The company has embarked on executing the twin strategy of restructuring its commodity business on one hand and focused growth in the consumer and farm business on the other hand. During the quarter our growth platforms of consumer business and non-subsidy farm business revenue grew at 20 percent and 21 percent respectively as compared to the corresponding quarter of the previous year.

"Consumer business continued to grow the Tata I-Shakti and Swach franchises and they have grown nearly to Rs1,000 crore sales (sales Rs972 crore) year to date. Followed by Mumbai and Delhi launches, 'Dal on Call' facility was extended to Bengaluru city during the quarter. The non-bulk farm business continued its growth on the back of better farm conditions and focus on productivity improvement at farm level. We launched Farmgro and Farmgro G in the previous quarter and the product is well received in the market.

"European restructuring is on track and should yield positive results from FY14-15. Current quarter results were impacted by a one-time charge of Rs82 crore due to restructuring of the European operation. Background work on restructuring the Magadi facility continues, the plan is expected to be finalised in Q4 FY13-14.

"We remain positive on the demand scenario going forward domestically as well as internationally. Prices internationally are stable. Subsidy outstanding continues to stress the working capital and is a challenge in the near term. Overall while we restructure our commodity businesses on the strategic front, we continue to focus on building farm and consumer business portfolio."

Businesswise performance

Living essentials
  • TCL salt franchisee — market leader in the national branded salt segment.
  • Tata Salt launched 'March for Purity' campaign at Bengaluru and Kolhapur.
  • 'Dal on Call' launched in Bengaluru.

Industry essentials
  • Global soda ash demand remained stable and showed signs of improvement.
  • Domestic soda ash demand stable and TCL market share improving.
  • Europe soda ash sales showing positive signs.
  • Magadi sales and production volumes improving, efforts on to stabilise the plant.
  • Production at Tata Chemicals North America on expected lines.

Farm essentials
  • Urea production / sales in line with expectations.
  • Neem-coated urea accounted for 38 percent of total urea production.
  • SSP production in line with budget.
  • Rallis registered 38 percent growth in net profit in Q3.
  • IMACID production on expected lines, however, the prices remain a challenge.

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