Tata Chemicals has turned around with a net profit of Rs 24.12 crore for the fourth quarter ended March 31, 2002, as compared to a loss of Rs 130.46 crore for the corresponding period of previous fiscal. The company has registered a 22 per cent increase in operational income from Rs 341 crore to Rs 415 crore during the period. Interest cost has also reduced by 56 per cent from Rs 39 crore to Rs 17 crore.

Revenues from the fertiliser business stood at Rs 146.44 crore in the fourth quarter, while that of inorganic chemicals stood at Rs 221.33 crore. For the year ended March 31, 2002, the company has posted a net profit after extraordinary items, current tax and deferred tax at Rs 127 crore compared to Rs 165 crore in the previous fiscal.

The financial results for the previous year included a gain of Rs 219 crore from the sale of investments under other income and an extraordinary expense of Rs 77 crore towards downward revision of fertiliser retention prices. Income from operation was marginally lower at Rs 1,481.32 crore compared to Rs 1,502.14 crore.

Said Tata Chemicals managing director Prasad Menon, "Last year was a difficult year for Tata Chemicals which was impacted due to a major fire at the Mithapur inorganic chemicals complex and operations have been stabilized within nine months. Soda ash, salt and fertilisers are our distinctive core businesses and we have delivered encouraging operating performances across all these areas."

"We continue to strengthen our level of economic advantage in each of these businesses through efficiency and marketing as well as tapping global markets that will augment the long-term sustainability of our operations. We have set a target of saving further Rs 1,000 per tonne in synthetic soda ash and becoming one of the most efficient lowest cost producers," he said.

The Tata group has set a target for Tata Chemicals to achieve a turnover of Rs 3,000 crore with a net profit of Rs 300 crore within 2005. According to Tata Chemicals chief financial officer Sunil Wadhwa, "Multiple financial initiatives including restructuring of debt has led the company in reducing interest cost by 32 per cent to Rs 110 crore from Rs 162 crore."

The company has rolled over the prevailing interest rates of 18.5 per cent to 13.7 per cent for the debt amounting Rs 166 crore. The company plans to issue an additional amount of Rs 50 crore in commercial paper (CP) in the immediate future, taking the total to Rs 300 crore, out of which CPs worth Rs 250 crore have already been issued till last year.

In the soda ash business, the company has achieved an annual cost savings of Rs 15 crore through operational efficiency. The company has earmarked around Rs 100 crore as capex for the 2002-03 The company has maintained leadership position with a market share of 39 per cent in iodised salt in March 2002 despite entry of multiple players