Tata Chemicals slides after Q2 PAT drops 46% YoY to Rs 267 cr

Tata Chemicals slipped 2.59% to Rs 1,045.90 after the chemical maker's consolidated net profit from continuing operations declined 46.06% to Rs 267 crore in Q2 FY25 as compared to Rs 495 crore posted in Q2 FY24.

The companys revenue from operations rose marginally to Rs 3,999 crore in Q2 FY25 as against to Rs 3,998 crore recorded in Q2 FY24.

Profit before tax stood at Rs 348 crore during the quarter, down 43.41% from Rs 615 crore posted in Q2 FY24.

During the quarter, EBITDA fell 24.52% to Rs 618 crore as compared to Rs 819 crore posted in Q2 FY24. EBITDA margin reduced to 15% in Q2 FY25 as against 20% recorded in the corresponding quarter previous year.

On segmental front, revenue from basic chemistry products stood at Rs 3,040 crore (down 2.59% YoY) while revenue from specialty products stood at Rs 962 crore, (up 9.56% YoY) in Q2 FY25.

The companys consolidated gross debt as on 30 September 2024 stood at Rs 6,479 crore up by Rs 431 crore and net debt at Rs 5,190 crore up by Rs 843 crore, as compared to September 2023. This increase was attributed to lower EBITDA, higher working capital in the US, UK, and India, as well as the capitalization of leases.

R. Mukundan, MD & CEO of Tata Chemicals, said, Overall demand for soda ash, in India was stable, while some segments like container glass in Americas and Europe experienced muted demand. Unprecedented heavy rains in July and August impacted Mithapur operations leading to lower production as compared to the previous quarter, thus impacting margins. However, Companys overall performance was better as compared to previous quarter due to higher sales volume, coupled with higher realization of soda ash.

Our focus is on customer engagement and stable operations, while ensuring steady contribution margins with a focus on costs. We continue to work with our customers and other stakeholders on our sustainability and digitisation efforts.

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.

Powered by Capital Market - Live News