Tata Chemicals drops after poor Q1 numbers

Tata Chemicals declined 4.2% to Rs 571.70 at 10:49 IST on BSE after consolidated net profit fell 13.5% to Rs 241.77 crore on 20% decline in net sales to Rs 2572.37 crore in Q1 June 2017 over Q1 June 2016.

The result was announced after market hours yesterday, 8 August 2017.

Meanwhile, the S&P BSE Sensex was down 112.68 points or 0.35% at 31,901.51.

On the BSE, 46,000 shares were traded on the counter so far as against the average daily volumes of 48,236 shares in the past one quarter. The stock had hit a high of Rs 585 and a low of Rs 563.65 so far during the day. The stock had hit a record high of Rs 665.10 on 4 May 2017 and a 52-week low of Rs 445.50 on 21 November 2016.

The stock had underperformed the market over the past one month till 8 August 2017, sliding 7.9% compared with the Sensex's 2.08% rise. The stock had also underperformed the market over the past one quarter, declining 5.64% as against the Sensex's 6.98% rise. The scrip had, however, outperformed the market over the past one year, advancing 27.36% as against the Sensex's 13.6% rise.

The large-cap company has equity capital of Rs 254.76 crore. Face value per share is Rs 10.

R. Mukundan, Managing Director & CEO of Tata Chemicals said that Q1 June 2017 has seen a good performance from the Global Chemicals Business. The company's sustained focus on improving operational performance and cost efficiencies has ensured margin gains inspite of a fire incident at Lostock.

In the Farm Business, Rallis India and Metahelix continue to focus on achieving higher sales and margins. There was a temporary suspension of operations at Haldia in Q1 due to the planned relocation of the ammonia pipeline and a notice from CPCB. However plant operations have resumed and the company's focus will be on stablising the plant operations there, Mukundan said. The Consumer Products Business continues to grow and Tata Salt maintains its market leader position, he added.

Going forward, Tata Chemicals will continue its focus on delivering operational excellence across its business with emphasis on customer and accountability and performance. Its strategy to continue to grow Consumer Business and Speciality Business is on track including investments in Nutraceuticals and Silica projects, Mukundan said.

Tata Chemicals is a global company with interests in businesses that focus on LIFE-living, industrial and farm essentials.

Powered by Capital Market - Live News