Mumbai: Tata Chemicals Ltd on Thursday posted a 61% rise in standalone April-June net profit on better realisations and declining cost, but lagged expectations, dragging its shares down more than 2%.
Shares in the company ended 2.15% down at Rs23.905 crore in the Mumbai market that was up 1.41%.
Net profit rose to Rs94.36 crore, up from Rs58.67 crore a year ago. A Reuters poll of brokerages estimated profits at Rs116 crore.
“Profit rose on the back of higher realisations and efficient cost management,” P K Ghose, chief financial officer, told reporters.
Standalone revenues in the June quarter rose 19.4% to Rs1,441 crore.
The chemicals and fertiliser company repaid loans worth Rs440 crore in June quarter, while the outstanding subsidy in the books was at Rs521crore, Ghose said.
“Demand for soda ash was largely driven by detergent segment,” he said.
Currently, chemicals contribute 65% of operating profits, while the rest comes from fertilisers, he said.
The company plans to repay foreign currency loans worth $44 million in January 2010, Ghose said.
Its also plans to pay $30-40 million every year towards of loans worth $300 million taken by its US unit General Chemicals.
Ghose said although soda ash prices were under pressure, its demand is rising on enquiries from detergents, flat glass and container glass segments.