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Tata Chemicals has reported 13 per cent fall in net profit at ₹153 crore in the June quarter against ₹175 crore in the same period last year, largely due to higher operational cost.
Net sales were up six per cent at ₹4,016 crore (₹3,801 crore). Operational expenses increased seven per cent at ₹3,609 crore (₹3,453 crore) due to high freight and power cost.
This apart, the financial performance of Rallis India, a subsidiary of Tata Chemicals, was impacted by poor monsoon.
R Mukundan, Managing Director, Tata Chemicals, said the overall performance of chemical business has showed a marked improvement with Magadi (Africa) operation registering improved performance after a challenging restructuring exercise carried out last year.
“We are encouraged by new urea policy which makes production at full capacity possible for efficient units like ours. With revival of monsoon and expectation of deficit to reduce significantly, there are signs of cautious recovery and we hope this will help us cope with the pressure,” he said.
Shares of the company were down two per cent at ₹484 on Wednesday.
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