February 06, 2018
Tata Chemicals announces Q3FY18 consolidated results
Tata Chemicals today declared its consolidated financial results for the third quarter ended December 31, 2017. The company reported a consolidated PAT of Rs759 crore as against Rs264 crore for the corresponding period Q3 FY16-17. Income from continuing operations for the quarter ended December 31, 2017, on consolidated basis at Rs2,574 crore and PAT from continuing operations was recorded at Rs545 crore, up by 176 percent.
Standalone Q3 FY17-18
- Indian Chemicals business delivered a robust performance with improved volumes and realisations across all product categories.
- Tata Salt posts robust volumes with growth back on track.
- On a Net Debt basis, TCL is debt free with cash of Rs1,189 crore. Focus now moves from deleveraging to growth.
- Divestment of the urea business to Yara International completed on January 12, 2018.
- The company has executed a BTA with IRC Agrochemicals for transfer of the Phosphatic fertiliser business located at Haldia and the trading business comprising of bulk and non-bulk fertilisers.
Consolidated Q3 FY17-18
- North American operations continue to maintain steady performance backed by favourable production volumes and profitability.
- One-off impacts at TCNA due to:
- Actuarial gain on changes to certain post retiral medical plans.
- The repeal of Alternative Minimum Tax (AMT) in recent US tax legislation changes, allows recovery of previously unrecognised tax payments.
- European operations showed improved efficiencies across all business units. Lower sales of traded ash.
- Magadi continued improvement in operational performance with higher volumes and improved realisations.
- Rallis India registers stable performance despite market challenges.
- Consolidated net debt on December 31, 2017, was Rs4,128 crore against Rs5,573 crore on March 31,2017.
- Tata Sampann Multi Grain Khichdi mix launched in January.
- Tata Salt remains the market leader in national branded segment.
- The business continues to focus on growing volumes across categories.
- Global Chemicals business registered good volumes and profitability due to operational efficiencies.
- Detergent speckles –DetMate and Pharma grade Bicarb- MediKarb launched in India.
- Agro Chemicals: Rallis reports stable performance. Digital platform-Dhrishti launched across India. Roll-out planned for three crops – cotton, paddy and tomato in Rabi season.
- Nutraceuticals: project on schedule. Plant to be commissioned in Q4 FY 2019.
- Rubber and Polymer Additives: project progressing as per plan.
R Mukundan, managing director, Tata Chemicals, said, “For the quarter under review, I am pleased to report a robust performance from the Indian as well as the global chemicals business. Both continue to register improved profitability and efficient operations.
“In the consumer business, Tata Salt remains the market leader. The recent product roll-out from the Tata Sampann umbrella brand is receiving a favourable response from consumers. We will continue to direct our efforts towards growing market shares across product categories and furthering customer excellence. Several consumer connect initiatives have also been initiated in that direction.
“In the farm business, Rallis India along with Metahelix registered a sound performance in the crop protection business, domestic and internationally. Further, we successfully completed the transfer of the urea business to Yara International in January this year.
“With the results of deleveraging the balance sheet and achieving healthy working capital levels now clearly visible, the company’s focus now moves from debt reduction to growth.
“Our growth strategy remains focused on leadership in industrial chemicals business and growth in the consumer food business and specialty chemicals led by agro-chemicals, nutraceuticals and rubber and polymer additives.”