The Hindu Business Line : Tata Chem Q1 net up 42 pc

TATA Chemicals has reported 42 per cent increase in net profit to Rs 64.94 crore for the first quarter ended June, compared to Rs 45.64 crore in the year-ago period.

Income from operations was down at Rs 509.98 crore from Rs 520.42 crore earlier.

In the chemicals segment, improved realisations from products on account of price increases helped improve profitability.

"While supply of phosphoric acid has stabilised, we moderated our phosphatic fertilisers sales due to the delay in the monsoon. However, delays in the announcement of phosphoric acid prices as well as expected tight supplies of rock phosphate in the foreseeable future continue to be cause for concern," the company said in a release.

At the company's AGM, Mr Prasad Menon, Managing Director, said that the company is faced with the challenge of sustaining this growth in the face of increasing competition.

Cost of materials account for 60 per cent of earnings. "This is because material for DAP and NPK were imported."

During the quarter, urea sales volumes were strong and this was the first complete quarter when the Babrala facility plant operated without any usage of naphtha.

"As a result, there was no price escalation component in the income from operations," the release said.

Tata Chemicals's market share in soda ash stood at 32.4 per cent.

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