Improved volumes in its Indian operations and better realisations in its North American operations saw Tata Chemicals report a 91 per cent rise in consolidated net profit at Rs 257 crore for the second quarter of 2014-15 ended September 2014.
The company’s consolidated revenue rose 11 per cent to Rs 4,803 crore and consolidated profit from operations rose 14 per cent to Rs 653 crore.
R. Mukundan, MD, Tata Chemicals told a press conference that the company’s European and Kenyan business restructuring were in progress.
In its Indian operations, Tata Chemicals’ net profit rose 96 per cent to Rs 209 crore and revenues rose 21 per cent to Rs 2,843 crore. It has a 69 per cent share in the national branded salt market.
Tata Chemicals’ gross debt was at Rs 8,300 crore with net debt at around Rs 6,000 crore of which the Indian operations’ gross debt was Rs 3,000 crore and net debt was at Rs 1,800 crore. It expects to reduce debt by half over the next five years. P.K.Ghose, CFO, Tata Chemicals, said “In 2017, a major debt repayment coming up and thereafter, the net debt in India should come down to negligible levels.’’
Mr. Mukundan expected soda ash prices to remain stable. “The government must table the urea policy. Our pulses business reported Rs 100 crore turnover in the first-half of the year and we expect it to close the financial year with a Rs 200 crore turnover. Tata Spices, including chili, turmeric, coriander and masalas, launched in Punjab during the quarter. The focus is on the north Indian markets for now.’’
“As we continue to focus on reshaping the portfolio to enhance share of consumer product business and non-subsidised farm inputs business, we will also simultaneously be concentrating on improving our balance sheet by regularly reviewing non-performing and non-core investments,’’ Mr. Mukundan said, adding that the demand environment was positive for the second-half of the year.
On the Bombay Stock Exchange, Tata Chemicals rose 1.18 per cent to close trading at Rs 423.5.
