Net sales of the company for the second quarter ended 30th September 2008 was at Rs.4,661 crore compared to Rs.1,733 crore, an increase of 169%. EBITDA was up also by 169% at Rs.670 crore. Profit before exceptional items and tax was up by 120% at Rs.587 crore and PAT for the quarter was at Rs.278 crore compared with Rs.208 crore in Q2 FY 2008, up 34%.
Tata Chemicals maintained its leadership position in the domestic soda ash market and its sales volume during the quarter was up 25%. In the coming months, surplus Chinese enhanced production may put pressure on prices in Africa and Asia but this could be offset by the lower cost of production due to lower energy costs. The fall in demand in USA is being compensated to some extent by demand picking up in Latin American markets.
It maintains its leadership in branded salts and this market share rose to an all time high of 56%. In the agri-crop or fertilizers unit, revenues for Q2FY09 from the crop nutrition business were Rs.3,067 crore and its PBIT margins stood at 13%. Work on debottlenecking of the urea plant at Babrala is progressing on schedule. Regarding its fresh produce business, first collection cum distribution centre at Melerkotla, near Ludhiana is functional. Construction of the Ethanol plant at Nanded is almost complete and trial production is expected to begin soon.
Like all the old generation Tata companies, even here, the promoters stake is very low at 29.15%. Institutions hold 40.81%. Interestingly, Hindustan Unilever, which held a 2.36% stake in the company in Q1FY09, now in Q2 holds a 2.14% stake.
Currently quoted at levels of Rs.155-159, recovered from the low of Rs.116, stay invested and if it dips further, consider making long term investment.
Tata Chemicals maintained its leadership position in the domestic soda ash market and its sales volume during the quarter was up 25%. In the coming months, surplus Chinese enhanced production may put pressure on prices in Africa and Asia but this could be offset by the lower cost of production due to lower energy costs. The fall in demand in USA is being compensated to some extent by demand picking up in Latin American markets.
It maintains its leadership in branded salts and this market share rose to an all time high of 56%. In the agri-crop or fertilizers unit, revenues for Q2FY09 from the crop nutrition business were Rs.3,067 crore and its PBIT margins stood at 13%. Work on debottlenecking of the urea plant at Babrala is progressing on schedule. Regarding its fresh produce business, first collection cum distribution centre at Melerkotla, near Ludhiana is functional. Construction of the Ethanol plant at Nanded is almost complete and trial production is expected to begin soon.
Like all the old generation Tata companies, even here, the promoters stake is very low at 29.15%. Institutions hold 40.81%. Interestingly, Hindustan Unilever, which held a 2.36% stake in the company in Q1FY09, now in Q2 holds a 2.14% stake.
Currently quoted at levels of Rs.155-159, recovered from the low of Rs.116, stay invested and if it dips further, consider making long term investment.
Source: sptulsian.com
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