The overall sales performance for Tata Chemicals in Q1 FY2020-21 was better than expected, the company believes that the sales revenues would be around 85% of the sales revenues for the first quarter of FY 2019-20.

 

The company’s largest site in Mithapur, Gujarat continued to produce Tata Salt with no disruptions and are operating today at higher than normal volumes in order to supply the market with this essential product. The company produced over 308,000 tonnes of salt, over 25% more than the production in the same period last year. Sales volumes were also higher than this period last year, recording a 42% increase over the sales for the first quarter of FY 2019-20.

 

As expected, production of soda ash and sodium bicarbonate has started to recover after the initial phases of the lockdown as our customers' own operations recommenced. Soda Ash sales volumes were just over 70% and Sodium Bicarbonate sales volumes were 80% of the sales for the same period in FY 2019-20. 

 

Globally, the sales volumes of Soda Ash and Sodium Bicarbonate improved from an estimated 70% of volumes for the first quarter of FY 2019-20, as intimated on June 8, 2020, to finish the quarter at around 75% of the volumes for soda ash and 95% of the volumes for Sodium Bicarbonate for the first quarter of FY 2019-20. 

 

This was primarily driven by the US operation where sales volumes were just over 70% of the comparative period in FY 2019-20. While the US domestic sales volumes held up well against last year, the export markets served by the US operation witnessed a slowdown in part due to COVID-19 restrictions in the markets serviced, with volumes just under 60% of last year.

 

UK operations did not suffer any significant disruption in production or sales with customer demand remaining at or ahead of last year. In Kenya, while there was no disruption in production related to COVID-19, there were some delays in despatches to customers in India and South-East Asian countries due to a complete or partial lockdown in certain countries. Sales volumes of Soda Ash from Kenya were above expectation but just under 10% below the sales volumes for the same period in FY 2019-20.

   

In India, the company’s two newer operations in Mambattu, Nellore (Andhra Pradesh) and Cuddalore (Tamil Nadu) started limited operation in May 2020 following the relaxation of local restrictions and are currently meeting customer demand in full. Given the scale of their current operations, this would not have a material impact on the results of the company.