Tata Chemicals reports Q1 FY21 consolidated revenue of Rs 2,348 Cr, down 9 pc
Kolkata/UNI: Tata Chemicals today declared its financial results for the quarter ended 30 June, 2020 with PAT on consolidated basis at Rs 74 Cr, down by 68 per cent as compared to Rs 231 Cr of the corresponding quarter of last year.
The Company reported income from operations on consolidated basis at Rs 2,348 Cr, down by 9% as compared to Rs 2,584 Cr of the corresponding quarter of the previous fiscal.
PAT reported on consolidated basis at Rs 74 Cr, down by 68%, as compared to Rs 231 Cr of the corresponding quarter of last year.
On a standalone basis, the income from operations was at Rs 628 Crs, as compared to Rs 719 Cr of the corresponding quarter of last year. PAT on standalone basis was Rs 109 Cr, down by 47%, as compared to Rs 206 Cr of the corresponding quarter of last year.
The Company’s results by reporting segment showed income from operations for the Basic Chemistry Products at Rs 1,672 Cr, down by 14%, and Specialty Products at Rs 676 Cr, up by 7%.
Commenting on the results, R Mukundan, Managing Director & CEO, Tata Chemicals Ltd., said, “Throughout the on-going COVID-19 situation, our focus has been on the safety of our employees while ensuring business continuity. Despite the unprecedented times, we continued the production and supply of the essential commodities after undertaking all necessary safety measures. In Q1, we adapted to the new normal with a consistent focus on product supply, cash position, optimal CAPEX, and calibrated fixed costs to build up and conserve our healthy cash position. '
" During the quarter, there was no material change in the Company’s liquidity position, with no borrowings and sufficient credit lines available. As we step forward, our aim is to move soda ash towards value added products in Performance Materials business, consistent growth in Nutrition science and Agri-science Businesses and seeding the Energy science business. "
Standalone Highlights Q1 FY2021
Provided immediate support to combat COVID-19. Produced & supplied 1.17 Million litres of sodium hypochlorite to Gujarat and 600,000 litres to BMC, Maharashtra. Distributed over 40232 masks to local community. Provided dry ration kits for 9,522 families, migrant labour, truckers
Soda Ash witnessed good demand from Soaps and Detergents segments, as they are classified as essential commodities but this was offset by flat & container glass segments through the lockdown period but is slowly returning to normal
Salt manufacturing in Mithapur continues to grow. Production and sales were the highest in the first quarter with no supply disruption through the lockdown
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 requirements.
Nutritional Solutions business witnessed a lower demand off-take, yet received good traction from health focused companies and commenced exports to the South East Asian markets, with encouraging customer response.
Silica Business had good demand in food & non-food grade silica from essential goods segments though demand from tyre and automotive segment were muted
Introduced InsperiCo, world’s first branded recycled Cobalt, extracted from recycling lithiumion batteries contributing to circular economy.
Going forward, focus will be building scale and value in Specialty Chemistry Products
Consolidated Highlights Q1 FY2021
Globally, the sales volumes of soda ash declined by 25% with sodium bicarbonate relatively flat.
During the quarter, the export market in the U.S witnessed a steep drop of 45% as compared to PY.
Demand from export market was significantly low in the flat glass segment across the globe UK operations did not suffer any significant disruption in production or sales with customer demand remaining as expected.
Sodium bicarbonate experienced a healthy growth in demand across user sectors.
In Kenya, there was no disruption in production but dispatches to the Indian market and South-East Asian countries were disrupted due to lockdown in those countries.
Completed US operations debt facilities which was due in June and August 2020, was refinanced with a new facilities at Valley Holdings Inc. ($100 million) and Tata Chemicals North America ($275 million).
Rallis India consolidated revenues for FY2021 were up 6% YoY at Rs 659 Crores; Successfully launched 4 new hybrid products: Maize (2), Bajra (1), Chilli (1)