Tata Chemicals jumps on stellar Q4 earnings

2 May 2022 , 10:21 AM

The Tata group companys shares climbs 8.96% to Rs 1025 after the company reported a substantial growth in consolidated net profit (from continuing operations) of Rs 470.24 crore in Q4 FY22 as compared to a net profit of Rs 29.26 crore in Q4 FY21.

Revenue from operations stood at Rs 3,480.67 crore in Q4 FY22 as against Rs 2,636.21 crore during the same period in the previous year, registering a growth of 32.03%. The operating performance reflected higher volumes, realisations, and favorable market conditions. These results have been achieved in the context of a challenging input cost & energy environment, the press release stated.

Profit before tax surged 538.40% to Rs 513.09 crore in Q4 March 2022 as against Rs 80.37 crore in Q4 March 2021.

On the segmental front, revenue from Basic Chemistry Products was Rs 2,901.77 crore (up 37.43% YoY) while that from Specialty Products was at Rs 564.21 crore (up 8.57% YoY), during the period under review.

On geographical front, revenue from the US entity stood at Rs 1,092 crore (up by 35%) in Q4 FY22. The US volumes remain strong with growth in domestic and export market. Export prices back to pre covid levels. Gas prices spiked during the quarter and remains at elevated levels, the company stated.

In United Kingdom, soda ash volumes remained steady; margins were impacted due to higher variable cost especially in carbon, gas andother raw materials, company added. Revenue was Rs 576 crore (up by 50%) in Q4 March 2022.

Further the company said, Kenya operations maintained its steady performance with higher sales volume and higher export realisations. Revenue from the Kenya entity stood at 171 crore (up by 49%) during the period under review.

On a full year basis, the company reported a 220.97% jump in net profit (from continuing operations) to Rs 1,400.15 crore on a 23.74% rise in net sales to Rs 12,622.12 crore in FY22 over FY21.

Consolidated gross debt stood at Rs 7,025 crore as on 31 March 2022 as compared to Rs 6,933 crore as on 31 March 2021, rising marginally bu 1.32% YoY. Cash & cash equivalents stood at Rs 2,791 crore, falling 10.11% YoY as compared to Rs. 3,105 crore as on 31 March 2021.

Commenting on the Q4 results, R. Mukundan, the managing director (MD) and chief executive officer (CEO) of Tata Chemicals, said, ?While the global demand environment continues to be positive across our products and their applications, the supply side environment especially energy and input costs remain at elevated levels along with logistic challenges that continue to be seen in the market. The team has responded well to ensure customers are served with agility. The focus has been to ensure sustained and consistent volume deliveries to customers. We continue our long-term focus on excellence by leveraging digitalization and sustainability. In addition to operational excellence, we continue to focus on executing the Phase I growth capex in India. The company has further planned for Phase II capacity expansion of soda ash (300 kt) and bicarb (70 kt) and specialty silica capacity by 50kt for a capex outlay of Rs 2,000 crore in India.?

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

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