Tata Chemicals reports 17 pct growth in net profit during Q2 2018-19
Tata Chemicals Friday reported a 16.94 per cent year-on-year growth in consolidated net profit at Rs 408.82 crore during the quarter ended September.
The company had posted a profit of Rs 349.59 crore in the corresponding quarter of the previous financial year. Tata Chemicals managing director R Mukundan told reporters here that the profit is from the "continuing operations" of the company.
The total income, which includes revenue from operations and other income grew by 12.55 per cent during the quarter under review to Rs 3,084 crore, against Rs 2,740 crore last year.
The company's income from operations for basic chemistry products grew by 7 per cent to Rs 2,033 crore, the consumer products segment by 22 per cent to Rs 460 crore and speciality products by 12 per cent to Rs 669 crore.
"We are pleased to share a good overall performance across all three businesses. India's basic chemistry products business continues to register a robust performance, due to operational efficiencies, a robust product mix and better realisations," said Mukundan.
On the global front, adverse impact on North American operations was partially offset by better sales realisation, he added.
The chemicals business has been the key pillar of the company and the soda ash facility expansion at Mithapur in Gujarat aims to lend further strength and sustainability to the business, he said.
"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. This the expansion will be achieved without any additional carbon generation by focusing on energy from waste heat, solar and wind," said Mukundan.
The company's board has approved a capital expenditure of Rs 2,400 crore, which would be deployed towards de-bottlenecking of Mithapur facility.
"The capex will be spread over three years and the initial funds will be done through internal accrual after which we will take a decision on how to raise the rest," he added. The consumer products business continues to be led by the growth of iodised salt, pulses and spices, coupled with entry into new categories, according to Mukundan.
The company, he said, is excited at the opportunities in the speciality 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, he said, adding "We are in discussions with multiple technology and equipment providers. The plans will be firmed up in the next financial year."
"These, together with the intended capacity expansion at Mithapur, would bring into operation our overall investments of about Rs 2,800 crore," he added.
The company's scrip ended the day up 1.24 per cent at Rs 695.80 apiece on the BSE, against 1.68 per cent increase in the benchmark.
(With inputs from agencies.)