Profit after tax (PAT) at Rs108 crore
Q1 FY 2013 consolidated financial highlights
- Income from operations at Rs3,066 crore.
- Profit from operations at Rs495 crore.
- Profit before tax (PBT) at Rs210 crore.
- PAT after minority interest at Rs108 crore.
- Earnings per share (EPS) at Rs4.22 (not annualised).
Results for the quarter were significantly impacted on account of:
- No production of complex fertilisers at Haldia owing to phos acid price
- A month-long shutdown at Babrala for maintenance and replacement of ammonia
- Significantly lower production at IMACID due to non-finalisation of phos
- Operations at Magadi impacted due to heavy floods.
- Increased foreign exchange loss of Rs100 crore on account of both trade
and borrowings (AS-11).
- Haldia operations resumed post finalisation of phos acid prices.
- Babrala operations are now stable and in line with expectations.
- IMACID resumed production with effect from June 2, 2012.
- Tata Chemicals Magadi (TCM) taking all steps to face the challenges posed
by the floods.
Commenting on the company’s Q1 FY 2013 performance, R Mukundan, managing
director, said: “The company was faced with unprecedented challenges during
the quarter which adversely impacted the operating performance. While the company
had a marginal increase in turnover, the margins came under pressure due to
plant shutdowns. In addition to the Rs62 crore impact of rupee depreciation
(AS 11 impact), this quarter witnessed Haldia and IMACID plant closures for a substantial
part of the quarter due to delay in acid contract finalisation. Babrala plant
too was shut for one month due to the annual turnaround. Magadi operations were
affected due to floods caused by unseasonal heavy rains. All our facilities
have now resumed operations in full strength and are performing to expected
“Going forward, we see the demand for soda ash and other industrial
chemicals weakening due to the global slowdown and, the farm essentials business
could face the challenge of uncertain monsoons.
“We continue to lead the market in the national branded salt category.
Our portfolio has been enhanced by the introduction of Tata Salt Plus –
iron-fortified iodised salt and flavoured salts. Tata Swach and i-Shakti pulses
continue to grow in a healthy manner.”
- Launched double-fortified salt and Flavoritz – both products showing
encouraging response from customers.
- I-Shakti dals available in 21 states across the country.
- Tata Salt remained the national leader in branded salts category with 64.7
percent market share in the national branded segment.
- While global demand for soda ash and bicarb was stable in Q1, going forward
the demand environment could weaken.
- In India, soda ash demand is expected to be in the range of 5-7
- Tata Chemicals North America (TCNA) – The production is down due
to teething issues. These are now resolved and the production for June
is as per expectations.
- Magadi plant has resumed operations after it remained partially disrupted
during the quarter ended June 2012 due to flooding caused by unseasonal, heavy
- Babrala plant was shut down from March 30 to May 1, 2012, for annual turnaround
and replacement of ammonia converter.
- Two di-ammonium phosphate production units at Haldia plant have resumed operations.
The operations at these two units were suspended during the period from April
1 to July 3, 2012, due to disruption in supplies of phos acid.
- IMACID production was impacted throughout the quarter due to issues in price agreement.
The price settlement was finalised after protracted negotiations.