Tata Chemicals Ltd. (TCL), on Tuesday, reported a drop of 46.2 per cent in its net profit for the first quarter of 2012-13 at Rs.107.6 crore, largely due to foreign exchange loss and temporary closure of some of its plants.
Consolidated net sales during the period rose 4 per cent to Rs.3,091 crore, according to a company release. The foreign exchange loss for the period was Rs.61.5 crore. The operating profit fell 13 per cent to Rs.358 crore while operating margin was lower by 185 basis points at 12.38 per cent.
In a statement, R. Mukundan, Managing Director, said, “The company was faced with unprecedented challenges during the quarter which adversely impacted the performance.
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“While the company had a marginal increase in turnover, margins came under pressure due to plant shutdown.’’
In addition to the Rs.62 crore impact of rupee depreciation, this quarter witnessed the closure of Haldia and Indo Maroc Phosphore SA (IMACID) plant in Morocco for substantial part of the quarter due to delay in acid contract finalisation, he said.
The company’s Babrala plant, too, was shut for one month due to the annual turnaround and its Magadi (in Kenya) operations were affected by floods caused by unseasonal heavy rains. “All our facilities have now resumed operations in full strength and performing to expected levels,’’ said Mr. Mukundan.
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