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Tata Chemicals surges 9% post March quarter results

The company's Ebitda rose 3.6 per cent at Rs 531 crore in March quarter.

SI Reporter  |  Mumbai 

Tata Chemicals surges 9% post March quarter results

shares surged 9 per cent to Rs 607 on the on Monday in an otherwise weak market after the company’s consolidated Ebitda (earnings before interest, tax, depreciation and amortization) rose 3.6 per cent year-on-year (YoY) at Rs 531 crore in March quarter (Q4FY19). The S&P was down 1 per cent or 360 points at 38,603 at 3:18 pm.

Tata Group Company’s adjusted profit after tax increased 2 per cent at Rs 317 crore on YoY basis. Its operational revenue grew 8 per cent at Rs 2,759 crore against Rs 2,555 crore in the corresponding quarter of previous fiscal.

The management said the overall operational efficiency continues to grow and the performance was on expected lines across all geographies except a few obstacles in the UK operations. The Indian Chemicals business registered a robust performance. US has delivered better results than the same period last year and Kenya exhibited a positive momentum.

“The company is showing signs of revival and we expect operational performance to pick up from FY20 onwards. However, earnings growth is expected to remain muted in FY20 owing to higher tax rate and lower other income,” analysts at Motilal Oswal Securities said in result update. The brokerage firm maintains ‘buy’ rating on the stock with target price of Rs 703 per share.

First Published: Mon, May 06 2019. 15:18 IST