Tata Chemicals Ltd's Q1FY19 consolidated net profit rises 23.94% yoy to Rs213.96cr: In-line with Estimates

The company’s consolidated revenue in the period stood at Rs2,769.12cr, up 12.95% yoy and 8.38% qoq.

Aug 13, 2018 12:08 IST India Infoline Research Team

Tata Chemicals Ltd Q1FY19

Consolidated Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 2,769.12 13.0
EBITDA 515.66 7.9
EBITDA Margin (%) 18.6 [87]
Net Profit (adjusted) 213.96 23.9
***EBITDA margin change is bps
Tata Chemicals Ltd's consolidated revenue for the quarter came in at Rs2,769.12cr, up 12.9% yoy. The operating profit for the quarter increased marginally by 7.9% yoy to Rs515.66cr. However, the EBITDA margin declined ~87bps yoy to 18.6% in Q1FY19. The adjusted net profit after tax attributable to owners (excluding discontinuing operations) stood at Rs213.96cr, up 23.9% yoy. The revenue and PAT were in-line with street estimates of Rs2,729cr and Rs214cr, respectively. However, EBITDA missed the street estimate of Rs552cr by 7%.
• Tata Chemicals Limited’s basic chemistry products business sustained its performance due to operational efficiencies, improved sales mix and higher realizations, despite stiff competition and higher energy prices. On the global front, performance of the North American operations reflects planned shut down and Kenyan operations were impaired by heavy rains. Thus, the segment reported a revenue growth of 3.4% yoy to Rs1,941.5cr with marginal decline in EBIT by 2.6% yoy to Rs275.32cr in Q1FY19. The segment EBIT margin declined by ~87.14bps to 14.2% during the quarter.
• Consumer business reported a robust 32.9% yoy increase in segment revenue to Rs438.33cr. This is on back of higher volumes from Tata Salt, which continues to maintain its leadership and the business expansion path under the Tata Sampann brand. The segment EBIT increased significantly by 58.4% yoy to Rs82.3cr during the quarter. The EBIT margin expanded significantly by ~302bps yoy to 18.8% on account of improved product mix and higher realizations.
• Plans for Nutritional Solutions and HDS manufacturing facilities are on schedule. The company has concluded the recent acquisition of precipitated silica business. The segment revenue increased by 25% yoy to Rs584.4cr during the quarter. The segment EBIT increased by 19.1% yoy to Rs67.1cr with marginal decline in EBIT margin by ~57bps to 11.5%.
• Rallis India (subsidiary) sales volumes were higher benefitting from a normal monsoon in most parts of the country.
• Consolidated net debt is down from Rs1,860cr as on March 31, 2018 to Rs1,506cr as on June 30, 2018. On a standalone basis, the company is net debt free.





Technical View:

Tata Chemicals share ended the day at Rs674.85, up 1.65 points, or 0.25%, from its previous close of Rs673.20 on the BSE. The scrip opened at Rs673 and has touched a high and low of Rs680 and Rs666, respectively. A total of 3,83,197 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.


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