Tata Chemicals nets profit

Tata Chemicals (TCL) has announced a net profit of Rs. 13.19 crores for the quarter ended June 2001 against a loss of Rs. 3.76 crores in the corresponding period of the previous year.

The company's net sales for the quarter was at Rs. 291.42 crores (Rs. 326.55 crores). Total expenditure for the quarter was at Rs. 210.44 crores (Rs. 250.28 crores). The company reported an operating profit of Rs. 80.98 crores (Rs. 76.27 crores) and other income was at Rs. 3.75 crores (Rs. 3.67 crores). After providing Rs. 31.37 crores (Rs. 47 crores) for interest, the gross profit amounted to Rs. 53.36 crores (Rs. 32.94 crores). Interest charges have declined through retiring higher cost debt, and tighter management of working capital and inventories.

The company provided Rs. 32.88 crores (Rs. 33.47 crores) for depreciation and Rs. 3.71 crores (nil) for tax. Employee Separation Compensation amounted to Rs. 3.58 crores (Rs. 3.23 crores).

According to the company, the sales income declined due to lower soda ash production and sales after the fire in March 2001 and marginally lower urea sales arising out of sluggish market conditions.

The renewal work at Mithapur after the fire in March 2001 is proceeding at a rapid pace and the soda ash plant is expected to go back to full capacity from September 2001. Complete normalcy in all operations will be achieved from October, 2001.

Operating margins, however, improved from 23 to 28 per cent due to aggressive cost control measures at the production units. A company press release says that a very tight control is being exercised on fixed costs and soda ash realisations have improved.

According to TCL, soda ash business continues to show steady growth and therefore the demand continues to be strong.

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Section  : Business
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