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Tata Chemicals’ Q3 Results: A Look into Profit Decline and Growth Strategies

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Tata Chemicals (TATACHEM) posted a consolidated profit of Rs 158 crore for the October-December period of 2023, showing a decline of 60.3% from the corresponding quarter last year The Mumbai-based chemical maker posted revenues of Rs 3,730 crore in the third quarter of the fiscal, with soda ash volumes and pricing pressure across regions, down 10.1% year-on-year due to industry diversification and pricing pressure.

On a consolidated basis, the company’s quarterly EBITDA stood at Rs 542 crore, down from Rs 922 crore a year ago, primarily impacted by volume and price movements in the region Tata Chemicals also highlighted the growth in debt repayments, including $25 million in advances in the US in Q3FY24.

Tata Chemicals noted that Rallis experienced quantitative growth in its domestic business and saw profitability improve across the board, while its international business was facing challenges. The company emphasized that it will focus on timely delivery of capital investment projects, cost savings, and continuous decommissioning.

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The call for an environment for soda ash in each home and worldwide markets changed into hard for the duration of the region, especially within the field glass and flat glass sectors in Europe and the Americas, leading to strain on volumes and prices. The company’s gross debt stood at Rs 5,912 crore as of December 31, 2023.

Tata Chemicals shares ended a 1.8% decrease at Rs 980 apiece on BSE ahead of the profits announcement. As of February 2, the agency’s stocks had grown 2.9% inside the past year, underperforming the Nifty 50 index, which rose by 22.4%.

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In precis, Tata Chemicals’ Q3 effects replicate a tough enterprise environment, especially in the soda ash marketplace. The enterprise is focused on addressing the demand-supply scenario, turning in its capital investment tasks, and keeping its marketplace percentage through client engagement.

The company is also focused on delivering capital investment projects on time, conserving cash, and continuing to deleverage. Tata Chemicals’ marketing strategy includes a focus on providing the best quality products to its customers at competitive prices. The company charges premium pricing for its Nutritional Solution business division and competitive prices for its industrial products like chemicals and other pesticides, mostly sold to small farmers with low-income levels.

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