Tata Chemicals Limited has reported an increase of 30% in Profit. After Tax, for the half year ended 30th September 2001 compared to the same period in the previous year. PAT for the half year ended 30th September 2001 is Rs 56.60 Crs compared to Rs 43.59 Crs, during the same period of previous year.

Sales dropped by 13%, to Rs 679.48 Crs during the first half of the current year from Rs 784.62 Crs during the same period last year, on account of reduced production due to fire in the company’s chemical plant at Mithapur in March 2001. The operating costs also reduced by 17% to Rs 493.31 Crs during the first half of the current year, from Rs 592.12 for the same period last year.

The reduction in net interest cost by 29%, to Rs 62.26 Crs during the first half of current year, from Rs 87.24 Crs for the same period last year, has further strengthened the bottomline. Overall this has resulted in Profit Before Tax increasing by 41% to Rs 71.19 Crs in the first half of the current year, from Rs 50.59 Crs for the same period last year.

The restoration work at Mithapur Facility is almost complete, and the Soda Ash and Salt facilities are working at full capacity. While the recent events have cast a shadow on economic growth of key sectors, which are the major users of Soda Ash, the company expects to continue its good performance in the current financial year. The focus on cost reduction, has begun to yield results, which is expected to be sustained.

The Company intends to progressively increase its market share in Soda Ash driven by return to normalcy in Mithapur facility. The company is actively working on strategies focusing on leadership of its Tata Salt brand.

The good monsoon has ensured adequate offtake of Urea from its Fertilizer facility at Babrala, and it is expected that the Rabi season will be normal.