The management, however, acknowledged that currency and its fertiliser business have been impacted, coupled with plant stoppages and higher energy prices
Tata Chemicals Ltd reported standalone net profit of Rs100.43 crore, for the April-June period, compared with Rs68.13 crore same period last year, on robust sales and stable realisations in the consumer business segment. However, the Tata Group company’s fertilisers and agri-business were affected. During the June quarter, Tata Chemical said its total revenues increased Rs1,738.64 crore from Rs1,586.34 a year ago period.
R Mukundan, managing director, Tata Chemicals said, “(During the quarter) Fertilisers and agri-business had an adverse impact of foreign exchange volatility and raw material shortages. International entities are challenged with issues of softening demand, lower realisations, plant stoppages and increasing energy prices.”
The company’s global chemical performance was impacted due to softening demand, lower realisations and plant stoppages. Haldia production suffered due to non-availability of phosphoric acid during the quarter. Tata Salt sales is up 3.4% while the company is the market leader with 65.2% market share in the national branded salt segment.
The company repaid $95 million in June 2013 as part of the ECB-$475 million loan pay off.
The company’s urea production is inline with expectation, with higher urea imports during the quarter. Despite lower urea prices, the weak Indian rupee cancelled the gains. The DAP/NPK was impacted due to ambiguity on the subsidies and raw material stoppages. Neem coated urea accounted for 35.7% of the total urea production. The officials are, however, playing the watch and watch game.
“We remain cautious on global demand scenario going forward domestically as well as internationally and while prices may remain at the same levels margins remains under pressure. Subsidy outstanding has come down as compared to March 2013 levels, but will continue to remain a challenge in the balance portion of the year,” Mukundan added.
Tata Chemicals closed Monday 2.3% down at Rs258.8 on the BSE while the benchmark Sensex ended marginally higher at 19,182.
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