Tata Chem Net Slips 26% To Rs 100 Crore

Net profit at Tata Chemicals dipped 25.77 per cent at Rs 100.41 crore for the first half of 1998-99 compared with Rs 135.27 crore for the same half of the previous year.

Sales, too, declined to Rs 747.01 crore, 7.5 per cent down compared with Rs 808.23 crore posted in the first half ended September 1997.

The second quarter profit declined sharply by 35 per cent at Rs 68.20 crore, while sales were lower by 18 per cent at Rs 430.60 crore.

Sales and profit were depressed on account of poor demand for soda ash and squeeze in the profit margins. According to the company, demand and margins for soda ash were under pressure on account of general economic slowdown coupled with imports of cheap soda ash and restricted allocation under the Essential Commodities Act for sale of Urea on account of unseasonal rains. Although other income has gone up to Rs 13.39 crore during the first half of 1998-99, the total income declined to Rs 536.72 crore. Tata Chemicals has provided Rs 57.33 crore towards depreciation and Rs 93.90 crore as interest. The tax outgo stood at Rs 120.68 crore.

 

Tata Chemicals, leading manufacturer of urea and soda ash, is presently, waiting for the government's decision on the retention price of urea. The results of its fertiliser division is based on the provisional price by the government.