Tata Chemicals decline after Q2 PAT drops 75%

Tata Chemicals fell 1.58% to Rs 320.45 after the companys consolidated net profit declined 75.3% to Rs 70.47 crore on 5.8% fall in net sales to Rs 2609.35 crore in Q2 September 2020 over Q2 September 2019.

Oct 30, 2020 01:10 IST capital market

On the segmental front, revenue from basic chemistry products contracted 10.6% to Rs 1838.68 while the revenue from specialty products rose 7.4% to Rs 766.17 crore in Q2 FY21 over Q2 FY20.

Profit before tax in Q2 FY21 stood at Rs 189.16 crore, down by 51.3% from Rs 388.50 crore in Q2 FY20. Tax expense increased by 14% year-on-year (YoY) to Rs 79.67 crore during the second quarter.

The company said that US domestic volumes Y-o-Y basis remained resilient, but export market faced some challenges. On the other hand, Q-o-Q basis, both domestic and export market are gaining momentum. Europe operation remained steady and margins remained consistent. Operational cash conversion remained robust at Rs 586 crore during the quarter. Kenya witnessed lower sales volume, resulting a dip in the revenue.

Commenting on the results, R. Mukundan, managing director & CEO, Tata Chemicals, said, ?With the country gradually reopening, we are witnessing the revival of the chemical sector and customer demand. Our plant operations and capacity utilization have gained momentum and are getting back to the pre-COVID levels.

In the coming quarters, we are aiming to move up the value chain with our business strategy concentrating on four verticals - performance materials, nutritional sciences, agro sciences and energy sciences, while maintaining cash flow and cash balances.?

Tata Chemicals is a global company with interests in businesses that focus on basic chemistry products and specialty chemistry products.

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