Press releases

Tata Chemicals’ Q1 FY2011-12 net sales up 17.1 per cent at Rs2,954 crore; net profit at Rs200 crore

• Net sales higher by 17.1 per cent at Rs2,954 crore.
• Profit from operations at Rs527 crore compared to Rs518 crore – For the quarter ended June 2011, the Company has not recognised subsidy income of Rs31 crore on opening stock of raw materials for phoshatic and potassic fertilisers, in accordance with the recent office memorandum dated July 11, 2011, issued by the Department of Fertilisers (DoF). The matter is being contested.
• PBT at Rs320 crore vis-à-vis Rs322 crore.
• PAT after Minority Interest at Rs200 crore compared to Rs216 crore — impact of Rs23 crore in accordance with the above circular issued by DoF.
• EPS (diluted and non-annualised) Rs7.90 per share.

• Demand environment across major products firm.
• Rising input costs, however, continuing to exert pressure — increasing realisations combined with efficient operations moderate the impact.
• Acquired a strategic stake in the USA’s potash explorer EPM Mining Ventures to access low-cost sulphate of potash.
• Successful commencement of Rallis India’s new facility at Dahej in June 2011.
• Deal with Canpotex (North American potash marketing consortium) to sell potash at a price of $470 per tonne — end of the deadlock over the import price of the crop nutrient and potash "import holiday".

• Domestic demand for soda ash healthy – however, rise in interest rates likely to impact sales to end-user segments.
  • Stable performance from Mithapur operations.
  • Rising input (imported coal and limestone) costs continue to exert pressure.
• Ongoing impact of extreme winter during early January 2011 lower soda ash production at Tata Chemicals Europe.
  • Repairs for breakdowns completed – production returning to normal levels.
• Robust production, sales and realisations at British Salt – ahead of forecast.
• Improved performance at Tata Chemicals Magadi driven by higher production and better realisations for both, SAM and PAM.
  • New contracts expected to be priced higher by $10-15 (NSR)
• Improved earnings performance at Tata Chemicals North America plant due to higher production volumes and renegotiated contracts.
  • Adverse impact of input costs (coal) likely to be offset by further proposed increases in realisations.

• Tata Chemicals remains the market leader with 63.2 per cent market share in the national branded segment.
• Strong demand for branded salt across the nation — branded salt volumes growth at approximately 4 per cent.
• Offtake for i-Shakti range of pulses robust.

• Production at Babrala has stabilised post shutdown and the shortfall is gradually being covered on the back of enhanced efficiencies.
• Witnessed gradual improvement in customised fertiliser volumes.
• Healthy growth in sales volumes at IMACID, Morocco — margin improvement dependent on increase in realisations.
• For the quarter ended June 2011, the company has not recognised subsidy income of Rs31 crore on opening stock of raw materials for phoshatic and potassic fertilisers, in accordance with the recent office memorandum dated July 11, 2011, issued by the Department of Fertilisers. The matter is being contested.