Tata Chemicals jumps after decent Q1 results

Tata Chemicals gained 5.39% to Rs 595.45 at 9:38 IST on the BSE after consolidated net profit rose 19% to Rs 245.18 crore on 5.6% rise in net sales to Rs 2896.94 crore in Q1 June 2019 over Q1 June 2018.

The result was announced after the market hours yesterday, 8 August 2019.

Meanwhile, the S&P BSE Sensex was up by 176.71 points or 0.47% at 37,504.07.

On the BSE, 52000 shares were traded in the counter so far compared with average daily volumes of 25000 shares in the past two weeks. The stock had hit an intraday high of Rs 600.95 and an intraday low of Rs 578.05 so far during the day. The stock hit a 52-week high of Rs 781.55 on 3 September 2018 and a 52-week low of Rs 548 on 5 August 2019.

Earnings before interest tax depreciation and amortization (EBITDA) grew 20.57% to Rs 592 crore in Q1 June 2019 as compared to Rs 491 crore in Q1 June 2018.

The company's net debt dropped 4.49% to Rs 1871 crore in Q1 June 2019 as compared to Rs 1959 crore in Q4 March 2018.

Commenting on company's Q1 performance, R. Mukundan, managing director, Tata Chemicals said, "The Company has posted a healthy growth on a consolidated basis across all business segments. In basic chemistry products business, we will continue to be most cost-efficient soda ash, bicarbonate and salt business. Company's investment in a Bicarbonate unit in the United Kingdom using innovative carbon capture process and Mithapur plant expansion will provide significant thrust to growth. We are also happy to have received the environment clearance for the expansion at Mithapur plant. The company will continue to focus on nutritional science and material sciences business towards scale by strengthening the innovative funnel to ensure aggressive growth in the Specialty Products Business.

Tata Chemicals is a global company with interests in businesses that focus on basic chemistry products, consumer and specialty products. The company is also a pioneer and market leader in India's branded Iodised salt segment. The company is currently is the world's third largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America.

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