Tata Chemicals Q3 PAT grows 74% YoY to Rs 349 cr

Tata Chemicals' consolidated net profit surged 74.04% to Rs 349.35 crore on a 20.54% surge in revenue from operations to Rs 3,141.58 crore in Q3 FY22 over Q3 FY21.

The increase in consolidated net profit was mainly due to higher soda ash volumes and the better realisations from the market. Consolidated profit before tax (PBT) soared 59.54% to Rs 406.08 crore in Q3 FY22 from Rs 254.52 crore in Q3 FY21.

On a segmental basis, revenues from basic chemistry products grew 23.21% to Rs 2,447.80 crore in Q3 FY22 as against Rs 1,986.59 crore in Q3 FY21. The demand remained strong across segments viz. glass, detergent and chemicals, as all end use sectors are at high operating levels.

Revenues from Specialty products jumped 9.73% to Rs 678.55 crore in Q3 FY22 as compared to Rs 618.34 crore in Q3 FY21. Rallis India, its subsidiary, recorded a consolidated revenue of Rs 628 crore for the quarter ended 31 December 2021, registering a growth of 10% over PY of Rs 570 crore. The profit after tax was at Rs 40 crore, recording a decline of 13% over PY of Rs 46 crore.

Sequentially, consolidated gross debt stood at Rs 6,937 crore during the quarter as compared to Rs 7,108 crore as on 30 September 2021 while cash & cash equivalents was at Rs 2,817 crore as against Rs 2,950 crore as on 30 September 2021. The company's consolidated net debt stood at Rs 4,120 crore.

The company said that globally, the demand remained firm across segments viz. glass, detergent and chemicals, as all sectors of the economy opened. The demand reached pre-pandemic levels while the export volumes out of the US market have witnessed a sharp increase. However, the global soda ash markets prices remained firm with the unavailability of chinese material and overall demand tightness. The challenging environment continued with high input costs & supply chain bottlenecks across geographies, it added.

Commenting on the Q3 results, R. Mukundan, the chief executive officer (CEO) and managing director (MD) of Tata Chemicals, said, "With the re-opening of businesses in all markets, the overall demand environment continues to be positive. While this positive demand momentum is expected to continue, the input supply-side environment especially energy costs remains high compared to historical levels, and supply chain challenges continue to be seen in the market. The team has responded well to ensure customers are served with agility. We continue our long-term focus on excellence by leveraging digitalization and sustainability. In addition to the operational excellence, we continue to focus on executing the growth capex in India."

The scrip shed 1.51% to currently trade at Rs 944.75 on BSE.

Tata Chemicals is a global company with interests in businesses that focus on basic chemistry products and specialty chemistry products.

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