Tata Chemicals records 46% y-o-y decline in Q2 net profit

18 Oct 2024 , 02:13 PM

On Thursday (October 17), Tata Chemicals Ltd announced a 46.1% year-on-year (YoY) fall in net profit to ₹267 Crore for the second quarter ended September 30, 2024.

In the preceding fiscal quarter, Tata Chemicals reported a net profit of ₹495 Crore, according to a regulatory filing. The company’s revenue from operations remained steady at ₹3,999 Crore, compared to ₹3,998 Crore in the previous fiscal year.

In the second quarter of this fiscal, EBITDA decreased by 24.5% to ₹618 Crore from ₹819 Crore in the same period last year.

In the reporting quarter, the EBITDA margin was 15.5%, down from 20.5% in the same period last fiscal year. EBITDA is earnings before interest, taxes, depreciation, and amortisation.

Tata Chemicals operates India’s third largest soda ash manufacturing capacity plant. Kapilram Vakil (grandson of late Indian Justice Nanabhai Haridas) established India’s second soda ash plant, which began operations in 1944.

The company reported sustained demand in all end-use industries in India during the second quarter. It claimed a strong demand for flat, container, and solar glass. However, imports fell throughout the same period, according to the investor presentation.

In contrast, demand in America declined, while demand in Europe remained modest. Despite these obstacles, Tata Chemicals reported a 6% sequential revenue rise in the quarter, driven by greater soda ash volumes and realisations. Furthermore, Ebitda increased by 8% from the previous quarter between July and September, owing mostly to higher margins in the United States, Kenya, and Rallis.

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