Operating profit suffered a 23.7 per cent drop to Rs 492.32 crore from Rs 645.89 crore last year. Margins have been badly impacted with the drop in profits. Operating profit margins dropped to 33.62 per cent from 39.26 per cent, while net profit margins slumped to 12.40 per cent from 17.54 per cent last year.

On the back of poor results, the company has slashed the dividend to Rs 5 per share from Rs 6.5 per cent. The quantum of dividend inclusive of tax is Rs 100.25 crore.

The company said that general depressed economic conditions resulted in a decline in soda ash demand which coupled with imports at lower prices resulted in reduced sales volume and margins.

Sales of urea was lower compared to the previous year primarily on account of lowerproduction caused by malfunctioning of certain equipment in the ammonia plant at Babrala in Uttar Pradesh. The company said that the plant is now operating normally.

The share price of Tata Chemicals on the Bombay Stock Exchange closed at Rs 70 per share on Wednesday, lower by Rs 3 over its previous close.

Interest costs were lower at Rs 194.51 crore as compared to Rs 215.30 crore last year. Depreciation was marginally lower at Rs 116.15 crore over Rs 115.13 crore and the provision for taxation stood at Rs 28.16 crore (Rs 43.50 crore).

The company said that since it is still awaiting the government's finalisation of the retention price for urea, the results of the fertiliser division continued to be predicated on the basis of the provisional price.