Tata Chemicals, the second largest manufacturer of soda ash and the third largest producer of sodium bicarbonate in the world, apart from being the leader in the Indian market, posted a good set of results for the first quarter ended 30th June 2009. Lower input prices and a strict control on operating costs enabled healthy performance for the quarter under review.
Its revenue for Q1FY10 was up at Rs 1,441 crore up 19.4% on a YoY. PAT was up 61% at Rs.94 crore. But on a consolidated basis, net profit was at Rs 42.5 crore as against Rs 107 crore in Q1FY09 and its consolidated net sales were up at Rs 2,248 crore v/s Rs 2,186 crore in Q1FY09. This dip in profit is on account of the closure of its Netherlands unit. This restructuring bill was at Rs 87.36 crore.
Soda ash domestic demand grew 8%, driven largely by the detergents segment. Prices of raw materials declined faster than the price of soda ash and that helped the margins. Urea production was at around 3,500 tons per day. It has a 58% market share in its salt business.
A new Sodium bicarbonate plant with a capacity of 50,000 MT has commenced operations in UK and demand continues to be healthy though increasing imports are pressuring margins.
In fertilizer segment, change in policy resulting in DAP subsidy prices being linked to international prices with a lag of 2 months instead of 1 month enabled better predictability and management operations. Phosphatic prices are expected to remain stable for now but move upwards from September. Its fertiliser subsidy for Q1 FY10 was at Rs 67 crore.
As at 30th June 2009, it has repaid loans worth Rs 440 crore, while the outstanding subsidy, for the fertiliser segment, was at Rs 521crore. The company plans to repay foreign currency loans worth $44 million in January 2010, and will pay $30-40 million every year toward loans worth $300 million taken by its US unit General Chemicals. Its cash balance stood at Rs 1253 crore.
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Source: www.premiuminvestments.in (S P Tulsian)
Its revenue for Q1FY10 was up at Rs 1,441 crore up 19.4% on a YoY. PAT was up 61% at Rs.94 crore. But on a consolidated basis, net profit was at Rs 42.5 crore as against Rs 107 crore in Q1FY09 and its consolidated net sales were up at Rs 2,248 crore v/s Rs 2,186 crore in Q1FY09. This dip in profit is on account of the closure of its Netherlands unit. This restructuring bill was at Rs 87.36 crore.
Soda ash domestic demand grew 8%, driven largely by the detergents segment. Prices of raw materials declined faster than the price of soda ash and that helped the margins. Urea production was at around 3,500 tons per day. It has a 58% market share in its salt business.
A new Sodium bicarbonate plant with a capacity of 50,000 MT has commenced operations in UK and demand continues to be healthy though increasing imports are pressuring margins.
In fertilizer segment, change in policy resulting in DAP subsidy prices being linked to international prices with a lag of 2 months instead of 1 month enabled better predictability and management operations. Phosphatic prices are expected to remain stable for now but move upwards from September. Its fertiliser subsidy for Q1 FY10 was at Rs 67 crore.
As at 30th June 2009, it has repaid loans worth Rs 440 crore, while the outstanding subsidy, for the fertiliser segment, was at Rs 521crore. The company plans to repay foreign currency loans worth $44 million in January 2010, and will pay $30-40 million every year toward loans worth $300 million taken by its US unit General Chemicals. Its cash balance stood at Rs 1253 crore.
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