Companies

Haldia plant closure drags Tata Chem net down 14%; shares plunge over 4%

Our Bureau Mumbai | Updated on January 09, 2018 Published on August 09, 2017

R Mukundan, Managing Director & CEO, Tata Chemicals. (file photo)

Tata Chemicals has reported 14 per cent fall in June quarter net profit at Rs 242 crore against Rs 280 crore logged in the same period last year largely due to temporary shutdown of its plant at Haldia.

Total revenues were down 20 per cent at Rs 2,667 crore (Rs 3,340 crore) as dealers destocked ahead of GST roll-out.

The company's inventory was up at Rs 250 crore (Rs 128 crore). Revenue from inorganic chemicals was down at Rs 2,048 crore (Rs 2204 crore), while that of fertiliser and agriculture input was lower at Rs 97 crore (Rs 404 crore) and Rs 482 crore (Rs 583 crore).

Financial performance during the quarter under review was adversely impacted on account of the temporary closure of the Haldia operations (Fertilisers segment) due to ammonia pipeline relocation project in accordance with the order issued by the Central Pollution Control Board. The plant had resumed normal operations on July 7, the company said.

During the quarter, the Group has concluded divestment of Grown Energy Zambeze Holdings, Mauritius and its subsidiaries.

R Mukundan, Managing Director & CEO, Tata Chemicals, said the sustained focus on improving operational performance and cost efficiencies has ensured margin gains despite a fire incident at Lostock.

Going forward, he said the company would grow consumer business and speciality business, including investments in nutraceuticals and silica projects.

The company shares were trading lower by 4.01 per cent at Rs 572.80 on the BSE.

Published on August 09, 2017
This article is closed for comments.
Please Email the Editor