Tata Chemicals - Q3FY21 First Cut - ICICI Direct

(CMP: Rs. 493; MCap: Rs. 12556 crore)

Topline mostly in line with estimates, however margins beat on account of better than expected gross margins.

Q3FY21 Earnings Summary

- Tata chemicals reported flat revenues to the tune of Rs. 2606 crore against our estimates of Rs. 2618 crore. The basic chemical segment revenue was down by 1% YoY to Rs. 1987 crore, while the same from speciality products were up by 2% YoY to Rs. 618 crore. The details regarding geography wise break up of revenues and volumes for basic chemical segment is still not out

- Gross margins witnessed an improvement of 725bps QoQ to 79.6% led EBITDA to beat our estimates. Further, control on other OPEX also helped better operational performance. EBITDA remained flat at Rs. 472 crore against our estimates of Rs. 407 crore

- PAT was up by 10% YoY to Rs. 160.9 crore, assisted by lower tax rate (21% v/s 23% in Q3FY20)

We would be coming out with a detailed report soon.

Shares of TATA CHEMICALS LTD. was last trading in BSE at Rs.489.8 as compared to the previous close of Rs. 492.9. The total number of shares traded during the day was 252173 in over 8837 trades.

The stock hit an intraday high of Rs. 495.1 and intraday low of 481.15. The net turnover during the day was Rs. 123288989.

Source : Equity Bulls

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