November 13, 2017

Tata Chemicals' Q2 FY17-18 consolidated income from operations at Rs3,462 crore

Tata Chemicals (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 Rs3,462 crore, lower by 0.7 percent and Rs1,598 crore, lower by 1.0 percent on a standalone basis. PAT was recorded at Rs273 crore, up by 52 percent on a consolidated basis and at Rs156 crore, up by 81percent on a standalone basis.

Consequent to implementation of Goods and Service Tax (GST) from July 1, 2017, net income from operations is net off GST. On a like-to-like basis, the revenue from operation for Q2 FY18 is at Rs1,598 crore, up 2.6 percent, as compared to Rs1,557 crore in Q2 FY17 (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 the Phosphatic fertiliser business
  • Results for the quarter include an exceptional charge of Rs53 crore, representing the shortfall between carrying value of net assets over the recoverable amount
  • Outstanding subsidy receivable as on September 30, 2017, was Rs1,228 crore (Rs1,105 crore as on June 30, 2017)

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 September 30 was Rs4,459 crore against Rs5,573 crore on March 31, 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 the 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 the Rabi season

R Mukundan, managing director, Tata Chemicals, 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 fertiliser business, this being in line with our earlier announcement on the sale of the urea business to exit the fertiliser 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,” Mr Mukundan added.