The Hindu Business Line : Tata Chemicals net rises on Rs 487-cr one-time gain

Mumbai, June 24 A one-time gain of Rs 487 crore has pushed the standalone net profit of Tata Chemicals Ltd for 2007-08 to Rs 949 crore, about 114 per cent increase over the previous year’s profit of Rs 444 crore. The one-time gain came from sale of its shares in TCS and Tata Investment Corporation.

Its standalone net sales were at Rs 4,075 crore, a 2 per cent increase over the previous year sales of Rs 3,985 crore.

Mr Homi Khusrokhan, Managing Director, attributed the performance to increase in raw material and fuel cost.

“Last year (2007-08) was tough due to higher input costs. There was also flooding at our Mithapur (Gujarat) plant, which had to be closed twice. Political tensions in Kenya also had its effect,” he said.

Mr Khusrokhan said the company would spend Rs 500 crore in 2008-09 for scaling up its domestic and international facilities.

He said that the company’s pilot plant for bio-fuels would be completed by October. The plant would produce 30 kilolitres of ethanol per day. If the pilot were successful then the plant would be scaled up to 100 kilolitres.

In March, the company through its wholly owned overseas subsidiaries acquired 100 per cent equity interest in General Chemicals Industrial Products Inc, a natural soda ash manufacturing company in USA. The process of acquisition was completed on March 26 and the results do not reflect the earnings of the new company.

The company has recommended a dividend at Rs9 per share.

At close on the BSE, the company’s shares were traded at Rs 303.80, down 6.62 per cent over the previous close of Rs 325.35

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