Tata Chemicals registers turnaround in profit in Q3

Tata Chemicals today reported a profit of Rs 238.12 crore for the third quarter of 2014-15, against a loss of Rs 15.93 crore in the year-ago quarter, on the back of fall in finance costs and tax expenses.
The income from operations increased by 5 per cent at Rs 4,820 crore and profit from operations by 17 per cent at Rs 590 crore in third quarter of 2014-15.
The company, which is engaged in manufacturing of chemicals, fertilisers and iodised salt among others, said that soda ash prices are firming up and demand remains stable.
The global soda ash demand continued to be positive and gave better realisation; the turnaround strategy in Kenya also started showing results.

Finance cost declined to Rs 119.41 crore from Rs 165.63 crore, while tax expenses fell to Rs 85.59 crore from Rs 92.61 crore during the period under review.
"The restructuring exercise at Kenya has been completed and has resulted in positive improvements. The company's European operations restructuring is in progress," Tata Chemicals Managing Director R Mukundan told reporters here.

The company's stand alone revenue was up by 13 per cent to Rs 3,019 crore and net profit up by 39 per cent to Rs 205 crore due to better performance in the consumer and chemicals business in India.
Better realisation at Tata Chemicals North America and positive performance by all the other businesses took the consolidated revenue to Rs 4,820 crore.

Revenue growth of 5 per cent was after closure of soda ash capacities in Kenya and the UK in the previous year.
The fertiliser business continues to face headwinds due to lack of clarity in policy which resulted in substantial production loss, it said.
In addition to this, subsidy outstanding at Rs 1,693 crore is a challenge and continue to hamper the balance sheet. The new product NP 20 launched under farm essential business is doing well at marker place and has received encouraging response, it said.
"We continue to focus on reshaping the portfolio to enhance share of consumer product business and non-subsidised farm inputs business," Mukundan said.