Tata Chemicals Ltd. reported a decline in net profit in the first quarter of fiscal 2025, though it met analysts' estimates.
The company posted a net profit of Rs 190 crore in the quarter-ended June, in comparison with Rs 587 crore in the year-ago period, according to an exchange filing on Monday. Analysts tracked by Bloomberg had estimated a profit of Rs 191.9 crore.
Tata Chemicals Q1 FY25 Results (Consolidated, YoY)
Revenue down 10.2% to Rs 3,789 crore versus Rs 4,218 crore (Bloomberg estimate: Rs 3,760.9 crore).
Ebitda down 45% to Rs 574 crore versus Rs 1,043 crore (Bloomberg estimate: Rs 581.6 crore).
Margin at 15.1% versus 24.7% (Bloomberg estimate: 15.5%).
Net profit down 67.6% to Rs 190 crore versus Rs 587 crore (Bloomberg estimate: Rs 191.9 crore).
Key Highlights
In India, demand was stable across all end-use industries. Demand for flat glass, container glass and solar glass is robust, it said.
In America, demand is flat and Europe experienced muted demand.
Competition from Turkey may decrease due to higher shipping costs.
In Rallis, while domestic demand had a positive bias, weak international demand impacted revenue growth. Profitability improved through pricing and cost management.
Ebitda was up by 30% in Q1 as compared to the previous quarter, mainly on account of it being a seasonal quarter for Rallis and better margin in India and the US.
Net debt increased as compared to the previous quarter, mainly on account of higher working capital loans and capitalisation of leases.
"Overall demand for soda ash was stable during the quarter on account of robust demand for flat glass, container glass and solar glass globally, while Europe experienced muted demand. China demand continued to be stable. The company has delivered a satisfactory performance during Q1 FY25 as compared to Q4 FY24 on expected lines," said R Mukundan, managing director and CEO, Tata Chemicals.
The overall sales volume remained stable as compared to the previous quarter, with marginal improvement in price sequentially on account of market factors. "Our focus is on customer engagement and agile response, while ensuring steady contribution margins with focus on costs. We continue to work with our customers and other stakeholders on our sustainability and digitisation efforts,” he added.
Shares of Tata Chemicals closed 3.5% lower at Rs 1,049 apiece on Monday, as compared with a 2.68% decline in the benchmark Nifty 50.
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