Tata Chemicals Q3 Results: Surprise Loss Of Rs 53 Crore
The margin narrowed to 12.1% in the October–December quarter as compared to Rs 14.5% in the same quarter of the previous fiscal.
Tata Chemicals Ltd. reported a surprise loss in the third quarter of this financial year, missing analysts' estimates.
The Mumbai-based firm posted a loss of Rs 53 crore for the quarter ended December, compared to a profit of Rs 158 crore in the same quarter of the previous fiscal, according to an exchange notification on Monday. This compares to Rs 191-crore consensus estimate by analysts tracked by Bloomberg.
The company reported a revenue of Rs 3,590 crore, representing a 3.8% fall for the quarter ended Dec. 31, 2024, as compared to Rs 3,730 crore for the same period last year. It missed estimates of Rs 3,803 crore, tracked by Bloomberg.
The chemical manufacturer's earnings before interest, tax, depreciation and amortisation slumped 20% to Rs 434 crore for the quarter under review as against Rs 542 crore for the year ago period.
Its margin narrowed to 12.1% in the October–December quarter as compared to Rs 14.5% in the same quarter of the previous fiscal.
Tata Chemicals Q3 FY25 Highlights (Consolidated, YoY)
Revenue down 3.8% to Rs 3,590 crore versus Rs 3,730 crore (Bloomberg estimates at Rs 3,803 crore).
Ebitda down 20% to Rs 434 crore versus Rs 542 crore (Bloomberg estimates at Rs 572 crore).
Ebitda margin at 12.1% versus 14.5% (Bloomberg estimates at 15%).
Net loss of Rs 53 crore versus profit of Rs 158 crore (Bloomberg estimates at Rs 191 crore).
"Overall, Asia, including India, continue to experience growth, while other markets, including the US and western Europe, are witnessing slight decline due to reduced demand for flat and container glass," Chief Executive Officer R Mukundan said. "The company's overall performance was down as compared to the same quarter of previous year, mainly due to lower soda ash pricing across geographies and higher fixed cost in US due to plant production outage during the quarter," he added.
Shares of Tata Chemicals closed 1.84% lower at Rs 946.55 apiece on the National Stock Exchange, compared to a 0.52% fall in the benchmark Nifty. The stock has fallen 3.34% in the last 12 months.
Out of the eight analysts tracking the company, one maintains a 'hold' rating on the stock and seven recommend 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 0.5%.
