Tata Chemicals Limited today announced its unaudited financial results for Q2 FY 2004. Announcing the results for Q2 FY 2004, Prasad Menon, managing director, Tata Chemicals, said, “A sustained thrust on optimising operating efficiencies, an aggressive sales and marketing approach, and sound financial management have enabled Tata Chemicals to strengthen its competitive position at both, the domestic and the international level and create a strong growth platform across its chosen businesses. Our financial and operating performance over the last quarter strengthens my conviction in our ability to create value going forward. ” 

Performance summary 
Q2 FY2004
The company’s net sales amounted to Rs 483 crore, a 16 per cent increase over the net sales in the corresponding period last year. EBIDTA levels improved by 11 per cent to Rs 139 crore. The company’s net profit has also reported a 71 per cent increase and stands at Rs 81 crore, translating to an EPS (not annualised) of Rs 4.46. Efficient financial management has resulted in debt reducing to Rs 617 crore as on September 30, 2003 compared to Rs 918 crore as on September 30, 2002 and Rs 740 crore on June 30, 2003. Weighted average cost of borrowings reduced to 8.2 per cent in Q2 FY 2004 compared to 8.4 per cent in Q1 FY 2004 and 10.5 per cent in Q2 FY 2003.

Project Manthan, which was extended to cover both the Mithapur and Babrala plants continued to drive operational efficiencies delivering a saving of Rs 20 crore in Q2 FY 2004, amounting to a total saving of Rs 40 crore.

H1 FY 2004
Tata Chemicals’ net sales in H1 FY 2004 stood at Rs 791 crore compared to Rs 744 crore, an increase of 6 per cent. Net profit registered a 59 per cent increase to stand at Rs 129 crore, and an EPS (not annualised) of Rs 7.14. 

Segmental performance
Urea
Urea sales volumes amounted to 326,800 mt, demonstrating a 14 per cent increase over the sales volumes in the corresponding quarter last year. 

Inorganic chemicals
Soda ash
Soda ash sales volumes appreciated 3 per cent over volumes sold in Q2 FY 2003. The company sustained its strong export performance, with volumes of 36,000 mt sold overseas in Q2 FY2004. Tata Chemicals continues to be the market leader in the segment with a market share of 34.3 per cent.

Salt
The Tata Salt brand retained its leadership of the salt segment with a market share of 37.6 per cent. The business also contributed Rs 35 lakh towards the ‘Desh Ko Arpan’ programme that is dedicated to the cause of educating underprivileged children. The Tata Salt brand was also identified as one of the Superbrands from amongst 800 brands chosen from across the country by ‘Superbrand’.

Proposed merger with Hind Lever Chemicals 
Shareholders of the company at a court convened meeting held on July 25, 2003 approved the arrangement embodied in the scheme of amalgamation of Hind Lever Chemicals with Tata Chemicals. The resolution was passed with the requisite majority.

Subsequently, the Bombay High Court passed the final order approving the proposed transaction. The Punjab and Haryana High Court is yet to approve the scheme of amalgamation.