Riding high on the performance of its foreign subsidiaries, Tata Chemicals reported a 14 per cent rise in consolidated net profit for the fourth quarter. The net profit stood at Rs 146 crore against Rs 128 crore in the corresponding quarter last year.

Consolidated net sales rose 16 per cent to Rs 2,568 crore.

“The growth momentum is coming mainly from the overseas performance. Growth on a standalone basis is largely stagnant. This marks a change from the last two years when foreign subsidiaries were struggling but this year it has turned around,” said Mr R. Mukundan, Managing Director, Tata Chemicals Ltd.

Standalone results

Tata Chemicals' standalone net profit for the quarter stood at Rs 73.82 crore, a growth of 2.4 per cent over Rs 72.02 crore in the corresponding quarter last year. Standalone revenue stood at Rs 1,378.25 crore (Rs 1,237.08 crore), a growth of 11.4 per cent.

“I think the fertiliser business would be under pressure this year,” Mr Mukundan added, saying that demand won't be a problem but pricing and other related issues will cause problems.

Fund Raising

US-based General Chemical Industrial Products, which has been re-branded as Tata Chemicals North America, will raise $375 million through bonds and term loans by mid-July, said Tata Chemicals' Chief Financial Officer, Mr P.K. Ghose.

Standard & Poor's (S&P) and Booz and Co are doing the rating work, which will pave the way for the bonds issue.

Mr Ghose said Tata Chemicals plans to fund half of the amount of the $290 million it paid for a 25.1 per cent stake in the urea manufacturing project in Gabon in Africa through foreign currency loans by end-December and the balance from internal accruals.

The rest of the stake in the project is held by Olam International Ltd and the Gabon government.

The company's net debt as of March 31 stands at Rs 4,400 crore. The debt to equity ratio stands at 0.80 while the debt to assets ratio stands at 0.37.

Full Fiscal results

On a consolidated basis, the company's net profit for 2010-11 fiscal stood at Rs 653 crore, a growth of 8 per cent over the same quarter last year while the net sales stood at Rs 11,060 crore a growth of 16 per cent over the corresponding quarter last year.

On a standalone basis, the company's net profit for the fiscal stood at Rs 408.49 crore, lower by 6 per cent over Rs 434.78 crore last year. The company attributed the drop to Rs 37 crore that had been written down in the quarter after two assets were closed. Net sales for the fiscal stood at Rs 6,225.27 crore, a growth of 15 per cent over Rs 5,412.45 crore last fiscal.

The board recommended a payment of dividend Rs 10 per share.

Tata Chemicals' scrip closed 3.11 per cent lower at Rs 350.90 on the BSE.

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