Tata Chemicals rallies 10%, hits record high on strong Q1 results

With the business environment steadily improving, the company is well-positioned to grow across customer segments, the management said.

Shares of Tata Chemicals hit a record high of Rs 844 as they rallied 10 per cent on the BSE in intra-day trade after the company reported a strong set of numbers for the quarter ended June 2021 (Q1FY22), with consolidated profit after tax (PAT) rising 362 per cent year-on-year (YoY) to Rs 342 crore, as against Rs 74 crore for the corresponding quarter of last year.

Operational income grew 27 per cent YoY to Rs 2,977 crore from Rs 2,348 crore in the year-ago quarter. This was mainly due to a rebound in soda ash volumes in the US and India. Ebitda (earnings before interest, taxes, depreciation, and amortization) margin expanded 490 basis points (bp) YoY to 20.2 per cent.

India operations had good traction across the product portfolio vs June 2020. US volumes continue the upward trend, export volumes were robust, spot market sees price recovery and expects contract market to follow on renewals, the company said.

The company further said overall, on a consolidated basis, sales improvement is supported by higher volumes across geographies against the previous year, especially in US exports, though sales realisations are still below pre-Covid levels.

The management said the capacity expansion at Tata Chemicals, Mithapur and Rallis, Dahej is on schedule. “With the business environment steadily improving, we are well-positioned to grow across customer segments,” the management said.

Tata Chemicals, a part of Tata Group firm, is a leading supplier of choice to nutrition, glass, detergent, industrial and chemical sectors. The company has a strong position in the crop protection business through its subsidiary company Rallis India.

At 02:26 pm, the stock was up 7.6 per cent at Rs 827.50 on the BSE, as compared to a 0.27 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over 12-fold with a combined 21.99 million equity shares having changed hands on the NSE and BSE.