By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
Tata Chemicals registered eported a 27 percent year-on-year drop in its standalone net profit for fiscal first quarter ended 30 June 2011 at Rs110.83 crore against Rs151.24 crore in the April-June 2010 quarter. Sales were, however, higher at Rs1,585.
Tata Chemicals registered eported a 27 percent year-on-year drop in its standalone net profit for fiscal first quarter ended 30 June 2011 at Rs110.83 crore against Rs151.24 crore in the April-June 2010 quarter. Sales were, however, higher at Rs1,585.33 crore against Rs1,461 crore in the year-ago period. Profit before tax was lower at Rs150.30 crore against Rs199.80 crore.
Consolidated net (after-tax) profit for the quarter ended 30 June 2011 stood at Rs200 crore against Rs216 crore in the April-June 2010 quarter. Profit after tax and minority interest at Rs200 crore for the April-June 2011 quarter, however, included the impact of Rs23 crore in accordance with a circular issued by the department of fertilisers, the company said.
Release issued by the company
Q1 FY2011-12 consolidated financial highlights
* Net
sales higher by 17.1 per cent at Rs2,954 crore.
* Profit from operations at Rs527 crore compared to Rs518 crore ? For the
quarter ended June 2011, the Company has not recognised subsidy income of Rs31
crore on opening stock of raw materials for phoshatic and potassic fertilisers,
in accordance with the recent office memorandum dated July 11, 2011, issued by
the Department of Fertilisers (DoF). The matter is being contested.
* PBT at Rs320 crore vis-?-vis Rs322 crore.
* PAT after Minority Interest at Rs200 crore compared to Rs216 crore ? impact of
Rs23 crore in accordance with the above circular issued by DoF.
* EPS (diluted and non-annualised) Rs7.90 per share.
Business highlights
* Demand environment across major products firm.
* Rising input costs, however, continuing to exert pressure ? increasing
realisations combined with efficient operations moderate the impact.
* Acquired a strategic stake in the USA?s potash explorer EPM Mining Ventures to
access low-cost sulphate of potash.
* Successful commencement of Rallis India?s new facility at Dahej in June 2011.
* Deal with Canpotex (North American potash marketing consortium) to sell potash
at a price of $470 per tonne ? end of the deadlock over the import price of the
crop nutrient and potash "import holiday".
Commenting on the company?s Q1 FY2011-12
performance, R Mukundan, managing director, said: ?Our healthy operating
performance is reflective of the traction we are witnessing in our international
businesses driven by strong demand across segments. The rising input prices in
the US and Kenya have been partially offset by higher realisations and operating
efficiencies. On the domestic front, however, increasing interest rates in
addition to higher input costs have pressured demand from end-user segments.
TCL?s strategy is to evolve as a low-cost resource player. This we believe will
not only safeguard us from the vagaries of the external environment but also
enable us to expand margins, improve market presence and significantly enhance
the sustainability of our business model. The acquisition of IMACID, Tata
Chemicals Magadi and Tata Chemicals North America were initial steps in that
direction. Our investments in British Salt and Gabon are further moves in line
with this strategy. Continuing this approach, during the just concluded quarter
we acquired a strategic stake in EPM giving us a source of sulphate of potash.
With this transaction we will complete our manufacturing presence across all
three groups of fertilisers.
Concurrently our thrust is on leveraging our deep and expansive distribution
reach achieved through our edible salt and TKS networks, to drive growth in our
consumer products and agri businesses in both the urban and rural areas.
We are happy with our performance and are confident of the growth opportunities
and inherent value of our business model.?
Business Performance
Chemicals
Consumer products
Tata Chemicals remains the market leader with 63.2 per cent market share in the national branded segment. Strong demand for branded salt across the nation ? branded salt volumes growth at approximately 4 per cent. Offtake for i-Shakti range of pulses robust.Fertilisers
Production at Babrala has stabilised post shutdown and the shortfall is gradually being covered on the back of enhanced efficiencies. Witnessed gradual improvement in customised fertiliser volumes. Healthy growth in sales volumes at IMACID, Morocco ? margin improvement dependent on increase in realisations. For the quarter ended June 2011, the company has not recognised subsidy income of Rs31 crore on opening stock of raw materials for phoshatic and potassic fertilisers, in accordance with the recent office memorandum dated July 11, 2011, issued by the Department of Fertilisers. The matter is being contested.