Tata Chemicals, the fertiliser and chemicals arm of the Tata Group, today reported 47.64 per cent decline in profit after tax at Rs 134.44 crore in the quarter ending September 30, due to Europe crisis, Kenya situation and lower profits in Barbala (UP) and Haldia (West Bengal) plants.
The company's PAT during Q2 of last financial year stood at Rs 256.77 crore.
"The decline in PAT was mainly due to three main reasons, the first one was the Europe crisis and the economic environment; the situation in Kenya where the prices as well as the volumes were affected. The third reason was the lower profits in our Barbala and Haldia plants," Tata Chemicals Ltd Chief Financial Officer P K Ghosh told reporters here.
Operations in the UK and Kenya continued to face headwinds due to lower realisations and increasing energy prices kept challenging the international entities operations, he added.
The total income from operations grew marginally by four per cent to Rs 4,344 crore during the second quarter compared to Rs 4,173.78 crore in the corresponding quarter of last fiscal.
Going forward, Ghosh said, the company is expecting the Mithapur (Gujarat) plant to do well, the Barbala plant to be on track and the prices and volumes likely to go up in Kenya.
"Tata Chemicals Europe has initiated a restructuring process of soda ash business and currently the proposal is under statutory consultation period," he added.
"We are enthused by the positive shift in business environment in India and overseas, especially in the US. The Indian chemical, consumer business and non-subsidy farm businesses continued sustained performance despite headwinds like forex volatility and spurt in input costs," TCL Managing Director R Mukundan said in a statement here.
"Similar trend is visible in the US operations. During the quarter the consumer and non-subsidy farm business grew at five per cent and 20 per cent, respectively," he added.
Consumer facing business continued its progressive journey with i-Shakti pulses registering 57 per cent growth in sales compared with the same period last year and Tata Swach continued to grow.
"We remain positive on demand scenario going forward domestically as well as internationally. Prices internationally are showing upward revision trend, but margins still remain under pressure. Subsidy outstanding, though down as compared to previous year, will keep the working capital management a challenge in the near future," he added.
The implementation of the nutritional solutions plant in Chennai is on schedule and currently under sterility trials,