Tata Chemicals Q3 PAT drops 55% YoY to Rs 194 cr

Tata Chemicals reported 55.09% decline in consolidated net profit from continuing operations to Rs 194 crore in Q3 FY24.

The companys revenue from operations stood at Rs 3,730 crore in Q3 FY24, down 10.07% from Rs 4,148 crore posted in Q2 FY23, due to lower volumes in soda ash and pricing pressure in all regions.

Profit before tax declined 50.93% to Rs 262 crore in Q3 FY24 as compared with Rs 534 crore in Q3 FY23.

During the quarter EBITDA dropped 45.36% to Rs 542 crore as compared with Rs 992 crore postedin Q3 FY23. EBITDA margin reduced to 15% in Q3 FY24 as compared to 22% recorded in the corresponding quarter previous year. The company stated that EBITDA was impacted due to volume and price pressures across all regions.

Rallis India recorded consolidated revenues of Rs 598 crore in the third quarter, recording a de-growth of 5.08% YoY.

As on 31 December 2023, companys gross debt reduced to Rs 5,912 crore as compared with Rs 6,296 crore recorded in 31 March 2023.

On 9M basis, the company's consolidated net profit declined 26.75% to Rs 1,276 crore in 9M FY24 as against 1,742 crore recorded in 9M FY23. Revenue from operations was at Rs 11,946 crore in 9M FY24, registering a de-growth of 3.52% YoY.

R. Mukundan, MD & CEO, Tata Chemicals, commented, said, The demand environment for soda ash in our domestic markets as well as international markets was challenging during the quarter. This was especially so in the container glass and flat glass sectors in Europe & Americas, which lead to a pressure on volumes and prices. Our endeavour is to continue to maintain our market share through customer engagement and have steady contribution margins with focus on costs and higher value-added products. Our focus will also be to deliver capital investment projects on time, conserve cash and continue to deleverage. In the short term, current demand -supply situation is likely to persist but should improve and stabilise over the long term driven by growth sectors based on sustainability trends.

Tata Chemicals, is a leading supplier of choice to Glass, Detergent, Industrial and Chemical sectors. The company has a strong position in the crop protection business through its subsidiary company, Rallis India.

The scrip rose 0.23% to Rs 982.25 on the BSE.

Powered by Capital Market - Live News