Tata Chemicals reported that its consolidated net profit nearly halved to Rs 108 crore in the June quarter, following disruption in production and forex losses. Sales were up by three per cent, at Rs 3,021 crore.
Production at the Haldia fertiliser complex was suspended after the impasse over phosphoric acid prices. The sharp rise in phosphoric acid prices in the last few months has impacted fertiliser production across companies. The rupee depreciation has also pushed up the cost of key raw material imports.
A month-long shutdown at Babrala for maintenance and replacement of ammonia convertor also had an impact on sales, said the company in a press release on Tuesday.
Besides India, the company’s overseas operations in Africa were also hit due to issues over raw material. The company has accounted the financial performance of pension fund of overseas subsidiaries to ‘reserves and balances’. If the same had been included in the statement of consolidated profit and loss, then the consolidated net profit would have been lower by 14 per cent at Rs 14 crore (Rs 16 crore).
R. Mukundan, Managing Director, said the company faced unprecedented challenges including Rs 62 crore impact of rupee depreciation in the June quarter.
On a standalone basis, the company’s net profit was down 39 per cent at Rs 68 crore, while sales dipped four per cent to Rs 1,506 crore (Rs 1,576 crore).
The company’s shares closed at Rs 308, down 0.72 per cent, on the BSE.