Tata Chemicals Q2 net profit up nearly 7 pc on strong sales

Tata Chemicals on Wednesday posted a 6.9 percent rise in consolidated net profit at Rs 437.05 crore during the September quarter on the back of strong sales. The company had reported a net profit of Rs 408.82 crore in the year-ago quarter, Tata Chemicals said in a regulatory filing.

Total income rose to Rs 3,176.04 crore during the July-September quarter from Rs 3,084 crore in the same period last year. Expenses also increased to Rs 2,702.61 crore from Rs 2,592.45 crore in the said period, the filing said.

"We are pleased to share an overall good performance across all business verticals. The basic chemistry products business continues to register a healthy performance, due to operational efficiencies and better realization," Tata Chemicals managing director and CEO R Mukundan said in a release here. In the Specialty products segment, the company's state of the art manufacturing facility in Nellore for nutritional solutions will produce FOS, a prebiotic dietary fibre.

Similarly, he said, trial production is on at the company's Cuddalore facility and commercial production of HDS is scheduled in Q4 FY20. "Both the projects are on track and progressing smoothly. Our pilot plant for Li-ion battery recycling has been operational and our goal is to scale up operations to recycle 500 tons of spent Li-ion batteries," he said.

The company will continue to focus on leveraging 'science' as a key differentiator with an objective to strengthen the Basic Chemistry business while aggressively growing the Specialty Products business. "We aim to accomplish this through operational excellence, continued focus on customer centricity, innovation and digitization with our strong commitment toward sustainability and developing engaging relationships with all our stakeholders," Mukundan added.

Shares of the company fell 1.51 percent to close at Rs 612 on the BSE.