Following a 6% increase on the BSE on Friday due to a positive outlook for the company’s future, shares of Tata Chemicals reached a new high of Rs1,182.40. The commodity chemicals company owned by the Tata Group saw its stock rise above the previous high it reached on August 12, 2022, which was Rs1,159.95.
After the company reported better-than-expected earnings for the quarter ending in June 2022, Tata Chemicals’ market price has increased by 38% over the past month (Q1FY23). In contrast, the S&P BSE Sensex rose 10% throughout that time.
Basic Chemistry (Alkali Chemicals–sodium bicarbonate, salt, silica, and other halogen chemicals) and Specialty Products are the two divisions through which Tata Chemicals conducts business (specialty silica, prebiotics & formulations, agrochemicals, and seeds).
Many of the top brands in glass, detergents, medicine, food, animal feed, and other industries around the world rely on the company’s product line for essential ingredients. The company, which ranks third and sixth on the market for soda ash and sodium bicarbonate, has manufacturing sites in India, the US, the UK, and Kenya.
In the June quarter, the company recorded a significant 87 % year-over-year (YoY) increase in its consolidated profit after tax (PAT), which came in at Rs641 crore (Q1FY23). The company owned by the Tata Group reported a PAT of Rs342 crore during the same period of the prior fiscal.
In Q1FY23, the company’s reported income from operations increased 34% YoY to Rs3,995 crore from Rs2,978 crore in Q1FY22. Due to lower costs for power, fuel, and freight, EBITDA margins for the quarter increased by 520 basis points to 25.4 %, which is the greatest level in company history.
According to Tata Chemicals, despite difficult market conditions and increased input and energy prices, operating performance indicates enhanced realizations, effective cost management, and optimal capacity utilization. The robust realizations of soda ash across all geographies played a significant role in the rise of basic chemicals.
The company’s products and their applications continue to experience strong global demand. Although this upward trend is anticipated to continue in the short to medium term, the management noted that the input side environment, particularly the energy environment, is still at elevated levels and that market-wide logistical issues are still present.
IIFL Customer Care Number 
IIFL Capital Services Support WhatsApp Number
