Tata Chemicals Q3 profit soars 3-fold to Rs759 crore
New Delhi: Tata Chemicals on Tuesday posted nearly three-fold jump in consolidated net profit at Rs759.07 crore during the third quarter of this fiscal on gains from its north American business.
Net profit had stood at Rs263.63 crore in the same period of corresponding year, the company said in a BSE filing. Total income increased marginally to Rs2,591.07 crore in the October-December period of 2017-18 fiscal from Rs2,524.44 crore in the year-ago period.
Expenses remained slightly higher at Rs2,229.31 crore as against Rs2,207.53 crore in the said period. As per the filing, Tata Chemicals North American (TCNA) business recognised a deferred tax gain of Rs246.63 crore and Rs78 crore actuarial gain on changes to certain “post retiral medical plans”.
The company said the TCNA continues to maintain steady performance backed by favourable production volumes and profitability. Also, the European operations showed improved efficiencies across all business units, while Rallis India registered stable performance despite market challenges, it added.
Commenting on the performance, Tata Chemicals managing director R. Mukundan said that India and global operations continue to register improved profitability. In the consumer business, Tata Salt remains the market leader. The recent product roll out from the Tata Sampann umbrella brand is receiving a favourable response from consumers, he said.
“We will continue to direct our efforts towards growing market shares across product categories and furthering customer excellence. Several consumer connect initiatives have also been initiated in that direction,” Mukundan said. In the farm business, Rallis India along with Metahelix registered a sound performance in the crop protection business, domestic and internationally.
Further, the company successfully completed the transfer of the urea business to Yara International in January this year, he added. “With the results of deleveraging the balance sheet and achieving healthy working capital levels now clearly visible, the Company’s focus now moves from debt reduction to growth,” Mukundan noted.
The growth strategy remains focused on industrial chemicals business, consumer food business and specialty chemicals led by agrochemicals, nutraceuticals, rubber and polymer additives, he added. Shares of the company fell by 2.25% to settle at Rs681.10 on the BSE.