Tata Chemicals Q1 PAT down 30% at Rs 75 cr
Mumbai: Tata Chemicals Ltd (TCL) Monday reported 30 percent decline in consolidated PAT for the quarter ended June 30 at Rs 75.21 crore mainly due to lower profit in international subsidiaries and higher energy prices.
The company's PAT was Rs 107.59 crore in the April-June period of the 2012-13 fiscal.
"Our profit after tax on a consolidated basis declined mainly on account of international subsidiaries, like Magadi (Africa), Europe and North America compared to last year. The energy prices were higher and the pricing was an issue," TCL Managing Director R Mukundan told reporters here.
Total income, however, increased by seven percent to Rs 3,331.65 crore in the quarter under review compared to Rs 3,111.85 crore in the same period of the last fiscal.
Going forward, he said, delayed subsidy is likely to put pressure on in the coming quarters.
"It is a continuing problem and we have asked the government to pay us an interest on delayed subsidy. The total delayed subsidy of TCL is Rs 1,153 crore and while that of the fertiliser industry is Rs 22,000 crore. So we have also given a collective representation to the court to assist us in getting this payment," Mukundan added.
He further said that overall during the quarter, domestic businesses showed decent performance with chemicals and consumer business portfolio registering satisfactory numbers.
"Fertilisers and agri-business had an adverse impact of foreign exchange volatility and raw material shortages. Consumer facing business continued its progressive journey with i-Shakti pulses registering 79 percent growth in sales compared with same period last year. Tata swach sales picked up during the quarter impressively," he said.
Going forward, he said, the company remained cautious on global demand scenario and while prices may remain at the same levels margins remains under pressure.
The implementation of the nutritional solutions plant in Chennai is on schedule, he said.
"On strategic front, we continue to focus on building specialty chemicals and consumer business portfolio," he added.
Tata Chemicals is market leader in branded iodised salt segment. The company is the world’s second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America.