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Tata Chemicals Q2 profit rises 17 pc to Rs 409 cr on higher income

PTI new delhi India
Updated: 02-11-2018 20:42 IST

Tata Chemicals said Friday its consolidated profit grew by 17 per cent to Rs 408.82 crore during the quarter ended September 30, 2018, helped by higher income from operations.

Its consolidated profit from continuing operations stood at Rs 349.59 crore during the same quarter a year ago, the company said in a BSE filing.

During the said quarter, total income also jumped to Rs 3,084 crore from 2,740 crore in July-September of 2017-18, Tata Chemicals said.

The company's total expenses were at Rs 2,592.45 crore, higher from Rs 2,256.62 crore in the year-ago period.

In a separate statement, Tata Chemicals said that "the company's results by reporting segment showed income from operations for basic chemistry products at Rs 2,033 crore, up by 7 per cent, consumer products segment at Rs 460 crore, up by 22 per cent, and specialty products Rs 669 crore, up by 12 per cent."

The company's Board of Directors also approved a capital expenditure of Rs 2,400 crore which would be deployed towards de-bottlenecking of Mithapur facility that could enhance soda ash capacity by about 1,50,000 tonne, salt production by 4,00,000 tonne and upgrade turbines for higher efficiencies and reduction in the carbon footprint to support the plant's sustainability road map.

In line with the company's strategy to grow their specialty business, Tata Chemicals is also considering entry into the lithium-ion battery sector to develop cell chemistries to meet Indian applications, the statement said.

The company recently entered into a pact with CSIR–CECRI (Central Electrochemical Research Institute), Karaikudi to explore collaborative technology for scaling up of manufacturing cathode materials for lithium-ion cells.

R Mukundan, Managing Director, Tata Chemicals Ltd said, "India's basic chemistry products business continues to register a robust performance, due to operational efficiencies, a robust product mix and better realisations.

"The chemicals business has been the key pillar of the company and the announced soda ash facility expansion aims to lend further strength and sustainability to the business. With the intended expansion at Mithapur, we would substantially raise our manufacturing capacity of soda ash and edible salt by 20 per cent and 40 per cent, respectively."

The company's consumer products business continues to be led by growth of iodised salt, pulses and spices coupled with entry into new categories.

Revenue from the new food platforms launched early this year also registered a substantial increase, he said.

"We are excited at the opportunities in the specialty business and are exploring a foray into lithium energy storage solutions. The market in India for these applications could be 40-60 GWh by 2025, and we are in discussions with multiple technology and equipment providers. The nutraceuticals plant in Nellore and the silica facility in Cuddalore is on schedule. These together with the intended capacity expansion at Mithapur would bring into operation company's overall investments of approximately Rs 2,800 crore," Mukundan said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)