Tata Chemicals log a Q4 PAT of Rs29cr declining by 85% yoy, top-line front rise by 11% yoy

On a consolidated basis, for the quarter, the income from operations rose by 11% to Rs2,636cr, as compared to Rs2,378cr of the corresponding quarter of last year

May 04, 2021 11:05 IST India Infoline News Service

Tata Chemicals reported an 85% decline in consolidated net profit to Rs29cr for the quarter ending March 2021 (Q4FY21) period compared to a profit of Rs198cr in the corresponding period of the previous year.

On a consolidated basis, for the quarter, the income from operations rose by 11% to Rs2,636cr, as compared to Rs2,378cr of the corresponding quarter of last year

Key highlights of the Q4FY21 earnings are:
  • Effective working capital management leading to Strong Cash flow from Operations i.e. Rs 2,037cr vs Rs1,780cr PY
  • There was a Rs 45cr one-off impact in US operations due to a spike in energy prices due to Polar Vortex
  • UK operations also had one-offs i.e. Tax asset write off Rs 16.5cr and Rs 7.5cr refinance cost & impact due to floods
  • Expect demand for soda ash and related products in North America, the UK and Kenya to continue to sequentially improve in 2021-22
  • In the US, while contract prices for the calendar year are lower, export spot prices are seeing positive movement
  • Plant capacity utilization remains high in Q4 with stabilization in demand
  • Rallis India reported Q4 Consolidated Revenues at Rs471cr and PAT growth of at Rs8cr

R. Mukundan, Managing Director & CEO, Tata Chemicals Ltd., said, “During the year, we witnessed a sequential improvement in demand and this quarter saw continuation of the same trend. With the second wave of COVID-19, our priority will be the health and safety of our stakeholders and we are undertaking several initiatives to cater to the well-being of the employees and communities. During the quarter, our profits were muted due to one off in US operations caused by Polar Vortex leading to sharp rise in gas prices. There was one off in UK operations due to tax asset write off, re-financing cost. We are witnessing strengthening of Spot soda ash prices which will ease margin pressures sequentially in the coming quarters. Going forward, time bound commissioning of capacities in Mithapur and Dahej coupled with growth of Specialty products arecritical steps towards transformation of the company.”

For the full year, on a consolidated basis, the income from operations stood at Rs10,200cr, as compared to Rs10,357cr as compared to FY2020. PAT on a Consolidated basis stood at Rs436cr, down by 58%, as compared to Rs1,028cr for the corresponding last year.

At around 10.59 am, Tata Chemicals was trading at Rs729.95  per piece down by Rs52.90 or 6.76% on Sensex. The stock has touched an intraday low of Rs721.85 per piece. 

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