Tata Chemicals, part of the over USD 110 billion Tata Group, on Friday reported 48.68 per cent year-on-year decline in consolidated net profit at Rs 1,386.85 crore for the financial year ended March 31, 2019.
The Tata group company had posted consolidated net profit of Rs 2,702.49 crore in the financial year 2017-18, Tata Chemicals said in a filing to the Bombay Stock Exchange.
Consolidated revenue from operations, however, rose by 9.19 per cent to Rs 11,296.33 crore in FY19 from Rs 10,345.36 crore in FY18.
Soda Ash and Salt in India have performed well with healthy margins due to improved operational efficiencies despite stiff competition and higher input price.
On the quarterly basis, Tata Chemicals’ net profit soared 62.80 per cent to Rs 450.10 crore in January-March period as compared to Rs 1,210.19 crore in the same quarter last year.
In January-March quarter, revenue was up 7.99 per cent to Rs 2,759.39 crore from Rs 2,555.08 crore in the year ago period.
The company’s consolidated net debt stood at Rs 1,959 crore as on March 31, 2019.
Tata Chemicals is pleased to share a positive overall performance despite some challenges on the energy cost and overall plant’s fixed cost. The overall operational efficiency continues to grow and the performance was on expected lines across all geographies except a few obstacles in the UK operations.
The Indian Chemicals business registered a robust performance. US has delivered better results than the same period last year and Kenya exhibited a positive momentum, said R. Mukundan, Managing Director and CEO, Tata Chemicals.
The company has been pursuing a strong transformation strategy that focuses on leveraging science as a key differentiator with an objective to strengthen the Basic Chemistry business, aggressively grow the Specialty Products business and gain a strong foothold in Consumer Business, he added.
The company’s board has recommended a dividend of Rs 12.50 per share i.e. 125 per cent for the Financial Year 2018-19, subjected to the approval of the shareholders at the Annual General Meeting.
The dividend, if approved by the shareholders at the ensuing AGM, will be paid on and from July 10, 2019, it added.
Tata Chemicals shares closed trade at Rs 557.50 a piece, down 3.19 per cent, on the BSE on Friday.
Tata Chemicals shares surged 9 per cent to Rs 607 on the BSE on Monday in an otherwise weak market after the company’s consolidated Ebitda (earnings before interest, tax, depreciation and amortization) rose 3.6 per cent year-on-year (YoY) at Rs 531 crore in March quarter (Q4FY19). The S&P BSE Sensex was down 1 per cent or 360 points at 38,603 at 3:18 pm.
Tata Group Company’s adjusted profit after tax increased 2 per cent at Rs 317 crore on YoY basis. Its operational revenue grew 8 per cent at Rs 2,759 crore against Rs 2,555 crore in the corresponding quarter of previous fiscal.
The management said the overall operational efficiency continues to grow and the performance was on expected lines across all geographies except a few obstacles in the UK operations. The Indian Chemicals business registered a robust performance. US has delivered better results than the same period last year and Kenya exhibited a positive momentum.
