Tata Chemicals posts loss of Rs 850 crore in March quarter

30 Apr 2024 , 03:16 PM

On Monday, India's Tata Chemicals posted its first quarterly loss in nine years, stung by a one-time charge incurred in its UK business, as well as reduced prices and demand for soda ash. It recorded a consolidated net loss of Rs 850 crore for the quarter ended March 31, compared to a profit of 709 crore rupees in the previous year. Tata Chemicals reported a non-cash write-down of assets totaling Rs 963 crore as an unusual loss in relation to its UK business.

Revenue from operations declined 21% to 34.75 billion rupees, marking the company's third consecutive quarterly decline. Soda ash, which accounts for two-thirds of Tata Chemicals' total sales volume, is seeing decreasing demand as caustic soda costs decline, making it more enticing to the silicate market, causing the business to cut soda ash product pricing at least five times since April 2023.

According to Emkay Research analysts, soda ash prices fell 21% in the March quarter compared to the same period last year. In addition to the soap and detergent industries, the chemical is used to lower the melting point of silica in the production of glass.

Tata Chemicals is the world's third-largest producer of soda ash, according to its website and analysts.

Tata Chemicals is a science-driven corporation with a range that includes both basic and specialist chemistry products. The company's story is about using the fruits of research to achieve purposes beyond business. Tata Chemicals' history may be traced back to the Okhamandal Salt Works, which was established in 1927.

At around 10.13 AM, Tata Chemicals was trading 2.20% lower at ₹1,075.30 per piece, against the previous close of ₹1,099.50 on NSE. The counter touched an intraday high and low of ₹1,078.45, and ₹1,050, respectively.

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