Tata Chemicals' consolidated revenue for the quarter ended March 2021 at ₹2,636 Cr, up by 11%

Tata Chemicals today declared its financial results for the quarter ended 31 March, 2021. On a standalone basis, the income from operations rose by 15% to ₹841 Cr, as compared to ₹ 734 Cr of the corresponding quarter of last year. PAT for the period on standalone basis stood at ₹120 Cr, as compared to ₹118 Cr of the corresponding quarter of last year.

On a Consolidated basis, for the quarter, the income from operations rose by 11% to ₹2,636 Cr, as compared to ₹ 2,378 Cr of the corresponding quarter of last year. PAT for the period on consolidated basis stood at ₹29 Cr down by 85%, as compared to ₹198 Cr of the corresponding quarter of last year.

On a standalone basis, for the full year, the income from operations rose by 3% to ₹2,999 Cr, as compared to ₹2,920 Cr as compared to FY2020. PAT on standalone basis stood at ₹479 Cr, down by 29%, as compared to ₹672 Cr for the corresponding last year.

On a consolidated basis, for the full year, the income from operations stood at ₹10,200 Cr, as compared to ₹10,357 Cr as compared to FY2020. PAT on Consolidated basis stood at ₹436 Cr, down by 58%, as compared to ₹1,028 Cr for the corresponding last year.

The Company's results by reporting segment showed income from operations, for the quarter, for the Basic Chemistry Products at ₹792 Cr, up by 13%, and Specialty Products at ₹49 Cr, up by 59%, as compared to the corresponding quarter of last year (CY Revenue of ₹153 Cr Up by 106% for full year).

Commenting on the results, Mr. R. Mukundan, Managing Director & CEO, Tata Chemicals Ltd., said, "During the year, we witnessed a sequential improvement in demand and this quarter saw continuation of the same trend. With the second wave of COVID-19, our priority will be the health and safety of our stakeholders and we are undertaking several initiatives to cater to the well-being of the employees and communities. During the quarter, our profits were muted due to one off in US operations caused by Polar Vortex leading to sharp rise in gas prices. There was one off in UK operations due to tax asset write off, re-financing cost. We are witnessing strengthening of Spot soda ash prices which will ease margin pressures sequentially in the coming quarters. Going forward, time bound commissioning of capacities in Mithapur and Dahej coupled with growth of Specialty products are critical steps towards transformation of the company."

Standalone Highlights Q4FY2021

- Continued priority on the safety and health of employees and other stakeholders amidst the second wave of COVID-19. Focus on plant operations with all COVID protocols continues

- Soda ash and Bicarb demand was firm and above pre-COVID levels in the quarter

- Cement demand was strong throughout the quarter and the prices were also on higher levels

- Food and rubber grade specialty silica have received well acceptance in the domestic market

- Prebiotics reported increase in volumes driven by strong customer engagements in international market along with increasing healthy food preferences of consumers. We will continue to witness growth in FOS (Fructo Oligosaccharide), Prebiotic and Dietary Fibre

Consolidated Highlights Q4FY2021

- Effective working capital management leading to Strong Cash flow from Operations i.e. ₹ 2,037 Cr vs ₹ 1,780 Cr PY

- There was a ₹ 45 Cr one-off impact in US operations due to spike in energy prices due to Polar Vortex

- UK operations also had one offs i.e. Tax asset write off ₹ 16.5 Cr and ₹ 7.5 Cr refinance cost & impact due to floods

- Expect demand of soda ash and related products in North America, UK and Kenya to continue to sequentially improve in 2021-22

- In the US, while contract prices for calendar year are lower, export spot prices are seeing positive movement

- Plant capacity utilization remains high in Q4 with stabilization in demand

- Rallis India reported Q4 Consolidated Revenues at ₹471 Crs and PAT growth of at ₹8 Crs

Shares of TATA CHEMICALS LTD. was last trading in BSE at Rs.782.85 as compared to the previous close of Rs. 793. The total number of shares traded during the day was 505375 in over 12516 trades.

The stock hit an intraday high of Rs. 794.45 and intraday low of 770.15. The net turnover during the day was Rs. 395248860.

Source : Equity Bulls

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