Tata Chemicals Q2 PAT soars to Rs 685 cr

Tata Chemicals reported a consolidated net profit (from continuing operations) of Rs 685 crore in Q2 FY23, steeply higher than Rs 248 crore posted in Q2 FY22.

Revenue from operations jumped 40.2% to Rs 4,239 crore in quarter ended 30 September 2022 from Rs 3,022.63 crore recorded in Q2 FY22.

The company said that the operating performance reflects improved realisations and efficient cost management in the context of elevated energy and input costs.

Consolidated profit before tax stood surged to Rs 723 crore in Q2 FY23 as against Rs 320 crore in the same period last year. EBITDA climbed 84% YoY to Rs 920 crore in Q2 FY23.

The company's revenue form Basic Chemistry Products was at Rs 3,242 crore (up 45.19% YoY) and that from Specialty Products stood at Rs 934 crore (up 26.94% YoY), during the period under review.

Tata Chemicals said that the soda ash prices continue to remain robust across geographies resulting in improved realisations in US, UK and Kenya. Cost environment is stabilizing and likely to stay at the current levels in the near term, it added.

Rallis India, its subsidiary recorded a consolidated revenues of Rs 951 crore for the quarter ended 30 September 2022, an increase of 31% as compared to Rs 727 crore for corresponding quarter of last year.

Commenting on the results, R. Mukundan, managing director & CEO, Tata Chemicals, said, We continue to work closely with our customers and partners to navigate the challenging global environment. The demand continues to be positive across our products and their applications which has resulted in improved realizations compared to previous year. We continue our focus on deleveraging and executing expansion projects.

On standalone basis, the company's net profit soared 80% to Rs 243 crore on 39.9% surge in revenue from operations to Rs 1,185 crore in Q2 FY23 over Q2 FY22. Soda Ash and Bicarb demand is robust across all application segments and is expected to remain firm in the near term

Tata Chemicals is a part of the Tata Group. TCL's business segments include basic chemistry products, salt making facility and specialty products.

Shares of Tata Chemicals slipped 3.96% to Rs 1,141.05 on the BSE.

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