Tata Chemicals Q2 net profit up 52% at Rs273 crore
New Delhi: Tata Chemicals on Monday reported 52% increase in consolidated net profit to Rs273 crore for the September quarter of the current fiscal. Its net profit was Rs180 crore in the July-September quarter of last fiscal, 2016-17.
Tata Chemicals’ income from operations fell marginally by 0.7% to Rs3,462 crore in the second quarter of 2017- 18, the company said in a statement. “Consequent to implementation of goods and service tax (GST) from 1 July 2017, net income from operations is net off GST,” it added.
The outstanding subsidy receivable stood at Rs1,228 crore at the end of second quarter. The company’s consolidated net debt on 30 September was Rs4,459 crore against Rs5,573 crore on 31 March 2017.
Tata Chemicals managing director R. Mukundan said, “The quarter under review saw a steady performance from the Indian as well as global chemicals business, registering improved profitability owing to cost and operational efficiencies.”
In the consumer business, he said that Tata Salt remains the market leader while in the farm business, Rallis India and Metahelix continue to register 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,” Mukundan said.
Tata Chemicals’ board has recently approved sale of its Haldia fertiliser unit in West Bengal to IRC Agrochemicals, a subsidiary of Netherland-based Indorama Holdings BV, for Rs375 crore.
The company would focus on the specialty chemicals and consumer food business as its key areas of growth, while maintaining leadership in the inorganic chemicals business, he added.
Tata Chemicals said its chemicals business in India continues healthy performance due to stringent cost control and operational efficiency. Tighter marketing spends in the spices and pulses business offset lower sales volumes.