Tata Chemicals posts Rs 16 crore loss in Q3 2013-14

Tata Chemicals has posted a net loss of Rs 15.93 crore on a consolidated basis for the quarter ended December 31, 2013 as compared to net profit Rs 224.07 crore for the same period last year. Total income has increased from Rs 4311.31 crore for the quarter ended December 31, 2012 to Rs 4598.13 crore for the quarter ended December 31, 2013.
 
The on-going restructuring programme for its European operation has had an impact on the Q3 results. In October last year, Tata Chemicals Europe (TCE), a unit of Tata Chemicals, announced its plans to restructure the business in Northwich, UK, in order to secure a sustainable and successful future.
 
Of TCE’s three sites in Cheshire - Winnington (Northwich), Lostock (Northwich) and Middlewich - the Winnington facility has ceased production from February 3, 2014.
 
“European restructuring is on track and should yield positive results from FY14-15. Current quarter results were impacted by one time charge of Rs 82 crores due to restructuring of European operation,” said R Mukundan, Managing Director, Tata Chemicals, in a press release.
 
The company has embarked on executing twin strategy of restructuring its commodity business on one hand and focused growth in the consumer and farm business on the other hand. “During the quarter our growth platforms of consumer business and non-subsidy farm business revenue grew at 20% and 21% respectively as compared to corresponding quarter of previous year,” said Mukundan.
 
He added, “We remain positive on demand scenario going forward domestically as well as internationally. Prices internationally are stable. Subsidy outstanding continues to stress the working capital and is a challenge in the near term. Over all while we restructure our commodity businesses, on the strategic front; we continue to focus on building farm and consumer business portfolio.”