August 13, 2018
Tata Chemicals' consolidated profit from operations for Q1 FY 18-19 at Rs270 crore, up 14 percent
Standalone net profit from operations stood at Rs264 crore, up 70 percent
Tata Chemicals Group (the “Company”) today declared its consolidated financial results for the first quarter ended 30 June, 2018. The Company reported income from operations on consolidated basis at Rs2,769 crore, up 10 percent and Rs996 crore, up 15 percent on a standalone basis against the same quarter last year.
The Company’s results by reporting segment showed Income from operations for basic chemistry products at Rs63 crore, up by 3 percent , Consumer products segment at Rs108 crore, up by 33 percent and specialty products Rs116 crore, up by 25 percent .
Standalone Q1 FY18-19
- Soda Ash business continues to perform with healthy margins due to improved operational efficiencies, despite stiff competition and higher energy prices
- Tata Salt maintains its leadership position in the branded salt sector. Consumer products business continues to expand its product offerings under the Tata Sampann umbrella brand with the introduction of a range of all natural chutneys, after organic pulses and nutrimixes
- Tata Salt’s ‘Sehat Ki Chuski’ campaign received global recognition at the MAA Worldwide Globes Awards
- Plans for nutritional solutions and HDS manufacturing facilities are on schedule
- On a standalone basis, the Company is ‘Net Debt Free’
Consolidated Q1 FY18-19
- Though US operations showed better production and realisation, the performance reflects the planned outage during the quarter
- UK operations back on track after some operational disturbance earlier this year
- Magadi operations experienced improved sales realisations but the performance was impacted by heavy rains, however operations are now back on track
- Rallis India sales volumes were higher benefitting from a normal monsoon in most parts of the country
- Consolidated Net Debt down from Rs1,860 crore to Rs1,506 crore compared to March 31, 2018
R Mukundan, managing director, Tata Chemicals, said, "We are pleased to share a good overall performance across all businesses. India’s basic chemistry products business registered a robust performance on the back of improved operational efficiencies, a better sales mix and better realisations. On the global front, performance of the North American operations reflects planned shut down and Kenyan operations were impaired by heavy rains.
The consumer business reported a 33 percent growth on the back of higher volumes from Tata Salt, which continued its leadership and the business expansion path under the Tata Sampann brand. The Company introduced a range of all natural chutneys, while products launched earlier this year like Nutrimixes and organic pulses were well received in the market. We continue to focus on improving our market reach and availability for these products.
In line with our growth focus on speciality business, we have concluded the recent acquisition of Precipitated Silica business. Rallis India registered good performance with a normal monsoon and the Seeds business in Metahelix continues its growth trajectory.
The company is poised for growth with a transformation agenda built on Innovation, Sustainability and Digitisation. While we continue our drive for optimisation and efficiency in the Chemicals business, our future growth drivers are going to be the Consumer and Specialty businesses."