Tata Chemicals drops 5% on profit booking post solid Q2 results

Analysts believe that prices and demand will remain stable in the near term while increase in energy prices and feedstock (limestone, coke and raw salt) remains a key concern.

Profit-booking was seen in shares of Tata Chemicals as it dropped 5 per cent to Rs 1,125.15 in Friday’s intra-day trade after the company reported nearly three-fold jump in consolidated profit after tax (PAT) to Rs 685 crore in September quarter (Q2FY23) from Rs 248 crore, in the year ago quarter.

Total income from operations, too, grew 40 per cent year-on-year (YoY) to Rs 4,239 crore, as against Rs 3,022 crore in Q2FY22. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, on the other hand, for the quarter rose by 510 bps to 22.7 per cent.

"Soda