Tata Chemicals has reported an 86 per cent jump in its June quarter net profit to ₹637 crore against ₹342 crore logged in the year-ago period, largely on the back of higher realisation.
Income increased to ₹4,041 crore (₹3,032 crore) and overall expenses were up at ₹3,273 crore (₹2,655 crore). Cost of production, too, jumped to ₹1,931 crore (₹1,473 crore).
R Mukundan, MD, Tata Chemicals, said while the global demand environment is expected to continue in the near to medium term, the input cost — especially that of energy — remains elevated coupled with logistic challenges. The company will continue to focus on operational excellence and executing growth capex, he added. The company has committed an investment of ₹1,800 crore till June and plans to invest ₹1,100 crore to complete the first phase of expansion by March 2024.
EBITDA during the quarter was up 25 per cent to ₹1,015 crore. The company has prepaid debt of $30 million in the quarter. Soda ash production was down marginally at 8.85 lakh tonnes (8.96 lt) while that of bi-carb and salt increased to 58,000 tonnes (55,000 t) and 4.18 lt (4.08 lt), respectively.
Soda ash realisations have increased across units and particularly in the US, and export pricing from Kenya remained firm. Operational cost may remain elevated and pose a challenge in the near term, said the company. Realisations in the UK market moved in line with sharp rise in input cost, it added.
Rallis India results
The company’s subsidiary Rallis India recorded a 16 per cent rise in its consolidated revenues at ₹863 crore. It plans to launch new products and reduce dependence on imported intermediates. It has started developing domestic suppliers for certain items, said the company.
On a standalone basis, net profit was up at ₹381 crore (₹228 crore) while income from operations rose 48 per cent to ₹1,225 crore (₹828 crore).