The Hindu Business Line : Tata Chem posts lower PAT at Rs 45.64 cr

TATA Chemicals Ltd on Friday reported a reduced profit after tax of Rs 45.64 crore for the quarter ended June 30 against Rs 48.81 crore in the previous corresponding period.

Net sales/income from operations, however, increased to Rs 520.42 crore (Rs 414.58 crore). Interest amounted to Rs 7.20 crore (Rs 16.24 crore) and total debt at the end of the first quarter stood at Rs 619 crore (Rs 750 crore).

Profit from operations dipped to Rs 111.35 crore (Rs 117 crore). Profit before tax was at Rs 72.42 crore (Rs 71.91 crore) but provision for tax also rose to Rs 26.78 crore (Rs 23.10 crore).

The company said in an official statement, "Revenues have registered a robust growth of 26 per cent due to improved capacity utilisation, higher exports and rising market share.

"This has been possible due to normal rainfall in the country coupled with better inventory management adopted by the Tata Chemicals management. Operating profits are lower due to higher input costs such as phosphoric acid, coke and ammonia and the increase in freight costs.

"PAT is lower largely due to a provision for tax that considers the effect of the inclusion of 2 per cent cess as proposed in the Finance Bill 2004."

Besides, "ammonia and phosphoric acid prices, while continuing to be high, are off their peak levels. The company, along with other players in the sector, is in dialogue with the government to ensure that the new DAP policy is free of any irrationalities in treatment of costs such that any price escalations are fairly factored in when calculating price concessions."

According to the statement, Tata Salt continues to be the leader in the edible salt market with a market share of 41.8 per cent.