Tata Chemicals Ltd.’s consolidated net profit for the second quarter of the financial year fell 46% year-on-year to ₹267 crore, compared to ₹495 crore in the same period last year. However, the profit exceeded estimates, with the company having projected ₹231 crore for the quarter.
Revenue remained flat at ₹3,999 crore versus ₹3,998 crore year-on-year. The company’s Ebitda dropped 25% to ₹618 crore, down from ₹819 crore, with margins shrinking to 15.5% from 20.5%. Despite the profit drop, Tata Chemicals noted stable demand across key industries in India.
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While demand in India remained robust, especially for flat, container, and solar glass, imports saw a decline. Conversely, demand in America dropped, and Europe witnessed muted demand. Nonetheless, Tata Chemicals reported a 6% sequential revenue increase, driven by higher volumes and realisations in soda ash.
Ebitda also rose 8% quarter-on-quarter, aided by improved margins in the US, Kenya, and Rallis. These regions contributed to the company’s stronger financial performance compared to the previous quarter, despite challenging market conditions in other regions.
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The company highlighted that its net debt increased compared to the previous year, primarily due to lower Ebitda and higher working capital requirements in the US, UK, and India. Capitalisation of leases also contributed to the rise in debt levels.
Tata Chemicals’ shares closed 2.41% lower at ₹1,073.85 on the NSE, underperforming the Nifty 50, which fell by 0.89%. Despite the decline in profits and shares, the company managed to surpass market expectations.
