Tata Chemicals PAT up 52% despite GST impact

Tata Chemicals Limited reported flat revenue for the quarter ended September, partly due to the impact of the GST, but net profit from continuing operations was up 52%.

On a like to like basis, said the company, revenue was up 2.6%.

As reported, revenue was at 3,462 Cr and net profit at Rs 273 cr. Including discontinued operations, net profit was Rs 327 cr, up from 213 cr.

The company’s expense accounts showed that it purchased more raw materials for production compared to last year, but less in terms of stock in trade, indicating that it conducted more in-house manufacturing compared to the last year.

“The quarter saw a steady performance from the Indian as well as global Chemicals Business, registering improved profitability owing to cost and operational efficiencies,” said R. Mukundan, Managing Director, Tata Chemicals Ltd.

IT said tighter marketing spends in the spices and pulses business offset lower sales volumes.

The Phosphatic fertiliser business registered improvement in the operational efficiency, but lower volumes due to temporary closure of Haldia operations in Q1, it said.

The results include an exceptional charge of Rs 53 Cr representing the shortfall between carrying value of net assets over the recoverable amount.

Outstanding subsidy receivable as on 30th Sept 2017 was Rs 1,228 crs, up from Rs 1,105 cr as on 30th June 17.

The group sold its urea business, which comprises lhe manufacturing facilities for urea and customized fertilizer at Babrala in Uttar Pradesh, for Rs 2,670 crore in August 2016.

“We continue to direct our efforts towards growing market shares across product categories and furthering customer excellence,” Mukundan added.

The company said Rallis India and Metahelix registered “a sound performance” in the crop protection business.

“The company is pleased to have found a suitable partner to further build the Phosphatic fertilizer business, this being in line with our earlier announcement on the sale of the Urea business to exit the fertilizer business. Our strategy remains to focus on the specialty chemicals and consumer food business as our key areas of growth, while maintaining leadership in the Inorganic Chemicals Business,” Mukundan said.

Consolidated net debt on 30th September was Rs. 4,459 Cr, down from Rs 5,573 cr at the end of March 2017.