Tata Chemicals on Tuesday posted a rise of 86.25% in consolidated net profit at Rs 637 crore for the quarter ended June 30, buoyant on the continuing global demand for its products. The Tata Group firm had posted a net profit of Rs 342 crore for the same quarter of the previous financial year.
During the quarter under review, the firm’s revenue from operations rose 34.15% to Rs 3,995 crore from Rs 2,978 crore posted during the same period a year ago. Its expenses, including cost of materials consumed, on a consolidated basis rose to Rs 3,273 crore from Rs 2,655 crore posted in the first quarter of last fiscal, the company said in a regulatory update.
According to the company, the operating performance reflects improved realisations, efficient cost management and optimum capacity utilisation in challenging market conditions, and in the context of rising input and energy costs.
“The global demand environment continues to be positive across our products and their applications. While this positive momentum is expected to continue in the near-to-medium term, the input side environment, especially energy, remains at elevated levels coupled with logistic challenges that continue to be seen in the market. The team has shown agility and has responded well by staying close to customers and supply chain partners,” Tata Chemicals MD and chief executive officer R Mukundan said.
“We continue our long-term focus on excellence by leveraging digitalisation and sustainability. In addition to operational excellence, we continue to focus on executing growth capex,” he added.
During the quarter, Tata Chemicals’ soda ash realisations have increased across units and in particular, the US and Kenya export pricing remains strong and firm.
On a standalone basis, Tata Chemicals’ net profit rose to Rs 381 crore in the June quarter from Rs 228 crore posted during the corresponding quarter of last year. Revenue from operations rose by 48% to Rs 1,225 crore against Rs 828 crore recorded in the year-ago quarter.
According to the company, the cost environment is challenging and likely to stay at elevated levels in the near term.
Rallis India, a subsidiary of the company, recorded consolidated revenues of Rs 863 crore for the quarter, a 16% rise over Rs 741 crore recorded during the previous year.